What to do if your home insurance purchase falls through

December 15, 2011 · Filed Under Home Insurance, Insurance

When you enter into an agreement to purchase a home it can be devastating to realize that things aren’t going to work out. You may have looked to a mortgage calculator at moneysupermarket.com or some other comparison website to prepare for your monthly payments. You’ve probably even imagined what the place would look like with a fresh coat of paint.

As you begin to deal with the disappointment that you feel, there are some tasks that need to be dealt with. Don’t lose time wallowing in sorrow.

It is important to get the answers that you need, as there could be some money on the line. After the necessities are taken care of you can move on to dealing with the emotions and concerns created by the loss.

Necessities

Before you take another step it is important that you understand what happened and why your home purchase has fallen through. If your loan application was not approved you need to know why.

This can help you plan for the next home buying experience. While you wait for the next home you can begin working to correct the issue.

Problems can also arise with the property itself. Sometimes a home won’t pass an inspection or doesn’t live up to the buyer’s expectation.

In this case you, as the buyer, are choosing the leave the agreement. In either situation your real estate is responsible for relaying information back and forth between the two parties.

Once you know what happened the next step is arranging to retrieve your earnest money. This isn’t always as cut and dried as you might think.

If you back out because of an issue with the house or the agreement you can usually get your earnest money back. If, on the other hand, the contract falls through because of your lack of funding, you may be out of pocket for the money you put down.

Dealing with the Loss and Planning for the Future

After figuring out what happened and attempting to get your earnest money back, it is time to deal with the emotions that you may be feeling. If it was a problem with the house you may be frustrated with the seller and more cautious about the next offer that you make.

If the purchase fell through because of financing or a problem with your application you might be frustrated with yourself or your financial situation. If you really loved the house, it can make all of the emotions worse.

But you have to move on. Take some time to regroup. If a financial issue was the problem, work on getting it handled. You may not feel like looking at homes or diving back into the real estate market. Don’t feel bad. This is completely normal.

Give yourself some time. When you are ready, you will be eager to get back out there and start looking for another home. You will go into this next agreement a more seasoned buyer with knowledge and experience that will benefit you in the long run.

Tags: Home Insurance, Insurance