Can we get out of this housing contract if we do not close this time?

Way back on April 21, 2009 we signed a housing contract for a quick delivery home. We planned to close in May. Our first lender was not familiar with USDA loans and so she tried to trick us into putting the money down to hurry and do FHA. We gave her 3 months of our time and she finally came back with a so-called denial…..(she never sent in our paperwork, there was no denial). At that point we wanted to be released so we contacted the office and was then advised to try this other lender, we did. Working with him he has gotten further but it has now almost been another 3 months and we still have not settled. We have had excuses like: the underwriter up and quit leaving our loan doc on her desk, holiday back up etc.

We had given our apartment notice to break lease and leave originally back in April so we were to be out by May. We continued to do month-month (our apartment was generous because they really don’t allow it) but now our apartment has rented our apartment a second time and there is nowhere to put the new renter as there are no 3rd floors avail but ours. Our place is rented because of the numerous lease extensions we have given them based on what the lender was advising and telling us….they thought Sept 29th we would definitely have the place as “WE were assured.” Now, in one day we have to move all of our stuff into the home we would like to buy and rent from the builder…..(more money out of our pocket). We were advised we would close in May, end of July, end of Aug and last told Sept. 29th. Now they have given us a closing date of Oct. 9th.

If it does not close can we legally get out of this contract without being sued? Supposedly now it is being forwarded to USDA. In our contract it states that if a mortgage commitment is now received within 45 days or 10 days of a subsequent application the seller can: extend the period for obtaining an approval, refer to another lender base on the same terms or consider this to be null and void. now we have did all but one. we have gave them plenty of time (6 months worth), and now working with a second lender. So if this doesn’t close on oct. 9th do we have the right to walk away?

Extra – they are charging us $ 405 for rent for only 10 days and if it does not close oct. 9th the builder wants $ 990 for the remainder of Oct.(10/10 – 10/31) That is too much, the mortgage isn’t even that much and we shouldn’t have to pay more. We have already dished out $ 100 extra per month ($ 500+) to do month to month while we were waiting, then $ 405 for 10 days up until closing (like they couldn’t waive that due to all this B.S) then they want another $ 990 if the lender continues to be lazy and does nothing?

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