On a side note, if a payment rise of only a few hundred dollars a month (200-300) on what is probably a 3-4k/month payment makes them unable to afford the house then they were buying WAAYYYY too much house in the first place.

I hope they can get their deposit back.

Not trying to rain on the parade, but Carriage Run is one of the most overpriced, least value for the money SFH in carmel valley. It’s around 2000-2300 sqft. It the homes are selling for near 800k (no landscaping yet ,etc). That’s just absurd.
Also, I thought Pardee was throwing in incentives to clear these out. Please tell me they didn’t pay full price on this?

Well….

How was the contract written?

Did the contract have a provision that allows them to terminate the contract under certain circumstances, such as their inability to obtain financing on terms that agreed upon?

Or did Pardee snow them over, and ask them to sign a contract with absolutely no financing contigencies and/or the contract wasn’t read.

Side note: it does seem that although we all like to laugh and or say how “dumb” folks are about real estate, most of us probably knows a family member/relative or even ourselves aren’t immune to always being fully insightful, all knowing, always wise decisioning making person. We’re our own victims of our own absurdity. I guess it’s because we’re human.

Well, I hope your in-laws get the 20k back. But if not, it’s just a lesson learned I guess. Besides, between pay the 20k education fee, instead of being upside down for the next 10-15 years and struggling to meet payments, I’d take the former.

Almost all purchase contracts have a contingency related to the ability to get financing.

They usually specify the loan amount and interest rate. If the buyer is unable to get financing for the specified amount and/or at the specified rate, they are released from any contractual obligations.

However IANAL and I haven’t read the contract that the buyers signed. If I were them, I’d reread it and see if there was a contingency for financing. They might want to spend a little money and take it to a real estate attorney for review.

Maybe now they’ll be a little less impulsive when they plunk down money to the builders chorus of “You better get in on this now, they’re going quick”?

I can actually contribute. I’m in the construction industry and last year I was a part of the mass lay-offs from the Tier 1 builders. I am still in the industry, just now I work on the other side of the fence (sub-contractor of the Tier 1 builders). I worked in operations, and I worked at the time with the sales department. You can get your deposit back if your close of escrow is more than a month away and you have a valid reason (job loss, can’t find financing, family emergency etc..) The sales agents job is to give you the most resistance that you cannot get your deposit back. The strong and the “squeeky wheel” will always prevail. You can do this by bypassing the first line of defense, the agents, and go to their regional managers on up to the Daily Units Processed dept, sales director, to the President of the division. I’ve seen it plenty of times, they give in even if it is under 1 month to COE. I’ve seen one guy deny that was the house he was shown, when it was ready for the first walk. Good luck, be tough, and be prepared to work for that 20k back.

Side note: This is a great site for my market conditions reports, and I use any information about builders slashing prices to generate sales. Gives me a heads up to call and start scheduling work.