I offered $225,000 for a short sale property in Overland Park, Kansas with 10% down. The seller countered that buyer must be willing to put 20% down if the lender requires. I accepted the counter, hoping 20% will not be needed and escrow has been opened.

Question: I offered $225,000 for a short sale property in Overland Park, Kansas with 10% down. The seller countered that buyer must be willing to put 20% down if the lender requires. I accepted the counter, hoping 20% will not be needed and escrow has been opened. The sellers lender has responded that they want 20% down on this property due to poor condition. I do not have that much cash. Please get back to me asap. Can I get out of this contract?
–Nygen from Overland Park, Kansas

Answer: If you agreed to buy the Overland Park home with 20% down, then you cannot get out of the contract for the reason “my lenders wants 20% down”.

However, if you are in your “contingency period”, which is usually 10 days from the acceptance date, you have other ways out of the contract.

For example, during your contingency period, you can get out of the contract without losing your deposit if: - You get a home inspection and don’t like what you find (this inspection typically runs anywhere from $250-400), or you get a pest inspection and don’t like what you find (this is usually the cheapest inspection to get at about $75), - You read the Natural Hazard Disclosures and don’t like what you find (this is paid for by the sellers).

Your contract outlines these details and your real estate agent should be happy to explain it to you. Frankly, your real estate agent should have instructed you NOT to accept the counter offer in the first place, since you were not truly willing/able to put 20% down. It’s too late now, but in the future, do not sign agreements that do not 100% meet your needs.

If you've past the contingency period, I would suggest contacting a real estate attorney, if you still want out of the real estate contract. An attorney maybe able to negotiate keeping the down payment at 10% if your lender can approve the mortgage loan with 10% down.

I hope this information is helpful.

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