Finance
A Connecticut buyer's loan falls through 2 days before closing due to a last-minute job loss discovered by the lender. The purchase contract has a financing contingency that has already been removed. What can the buyer do?
AAutomatically cancel the contract and get the earnest money back
BSue the lender for breach of the commitment letter
CThe buyer is likely in breach of contract; they may lose the earnest money or face a lawsuit for damages since the financing contingency was removed✓ Correct
DRequest a 30-day extension from the seller
Explanation
Once the financing contingency is removed, the buyer is unconditionally obligated to close. If the buyer cannot obtain financing, they are in breach of contract. The seller may retain the earnest money and/or sue for damages. A request for extension is possible but the seller is not obligated to grant one.
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