Odd House Delima...

Did they sign a contract? Was there any written agreement about how long they had to "repair their credit" (I have never heard of this before). I would have thought this would be in everyone's best interest. I would be seriously upset if I were the neighbors and you backed out. I don't know what your/your neighbor's legal rights are, but I agree with Dawn, I would be asking an attorney.

6 moms found this helpful

You might check with a real estate attorney. That's your best bet.

You don't want them to be able to sucessfully sue you - forewarned is forearmed!

Btw, so sorry about the loss of your baby. I'm sure this home feels very comforting to you.

D.

5 moms found this helpful

You have to do what is best for your family, with lots of heartfelt apologies.

2 moms found this helpful

I think if you are seriously not going to move you should be straightforward about it... maybe mention the miscarriage and that you decided not to add more stress on the family by moving. I think any way you tell it, there will be some strain on the neighbor-love unless they are pretty laid-back. I don't think you owe them anything financially just because credit repair means they could buy another house, car, etc. That will do nothing but help them even if they don't buy your house... that's how I would look at it if it happened to me. But I would be kinda mad if I adored your house or something.

2 moms found this helpful

You had an oral agreement to sell your home to them down the line when they repaired their credit, and, I assume, where able to get financing.
Check the legality of oral contracts in your state

But, your situation changed and you no longer need to sell the house
So, don't sell the house

Even in traditional real estate transactions sometimes the seller decides not to sell, even after the buyer has looked and offered. It happens.

Explain to your neighbors, that now, selling is not a good option for your family. Apologize, then move forward.

Worst case scenario - they have repaired their credit, and will be loan worthy for another home.

God Bless

2 moms found this helpful

Okay so your idiot neighbors fell prey to a company saying pay us this and we will repair your credit and you feel guilty? You didn't give birth to them so why would you feel guilty because they are stupid!

If they actually repair their credit, which is unlikely with these companies, there is nothing stopping them from buying a house, just not your house.

Okay, oral agreement post, there was no consideration so no contract oral or otherwise.

Okay so no one is listening. There are several transactions that are required by law to be a written agreement, off the top of my head, marriage and the buying and selling of real property. Just as a man who proposes is not legally bound to walk down the isle two neighbors talking about buying and selling a home are not legally bound to sell the home! In marriage it is the vows, which spell out the consideration, which seal the written contract, usually a marriage license and certificate. In a transaction to sell real property is is signing the contract to buy and the exchanging of the down payment or consideration. Only after this happens is there any concern for monetary damages.

2 moms found this helpful

I certainly don't think you owe them anything financially.
But never give others financial advice, as the advice given to them by you was bad advice.
They decided to "repair" their credit at the tune of $800/mo when they could have done it on their own. That was a really bad decision on their part and unwise advice from you.
Really, this can be a win-win....you stay put and they "fix" their credit so they can go and buy ANY house sometime in the future. Hopefully.
Usually a good rule of thumb is NO business deals with friends or family.
If you really want to help out a couple that is struggling financially, buy them one of Dave Ramsay's books as a gift. It will help them for the rest of their lives.
I DO think you owe it to them to have a sit down and tell them about your decision ASAP.
I'm so sorry about your miscarriage, I've had 3, so I know it's hard. Hugs.

2 moms found this helpful

You should tell them asap. I would be pretty mad if I were your neighbors, but since its just an oral agreement I doubt they could do much about it. If they were waiting to repair their credit before buying your house then I think it would have taken a lot longer than nine months to even do that! I think it takes at least a year for your credit to even be affected by anything good you are doing, so who knows what the timeframe would have even been.

2 moms found this helpful

Ugh, bad situation all around. Legally, you are probably in the right to keep the house. Morally, you are going against your word and you have to decide if you are comfortable with that. Go talk to them, tell them NOW they are not getting the house. Explain why, but be prepared for them to be MAD, rightfully so.

I'm so sorry for your loss. I'm sure this is a hard decision. Honesty is the best policy always, so go talk to your neighbors.

@Mamamay: Judgemental much? You don't know their situation.

2 moms found this helpful

This is just what I would do, you have to do what you think is right. I would explain that the miscarriage changed everything, give sincere apologies for backing out of the deal, and give them $800 as an apologetic gesture. I wouldn't offer to give them the $800, I'd just hand them a check when I apologize.

1 mom found this helpful

So they only reasons they care what their credit looks like is because they want to buy your home?

1 mom found this helpful

First of all, I'm so sorry for your loss. I think you should tell your neighbors as soon as possible, letting them know the miscarriage changed everything and now, you are staying in your home. I absolutely don't think you owe your neighbors any money. There was nothing in writing and yes, while I realize there was a verbal agreement, if your neighbors have any kind of empathetic bone in their body, they will be understanding. I'm sure they will be very disappointed, but aren't you disappointed at this time also?

I wish you the very best of luck. I hope it works out where they understand and will stay friends. :)