i was going to buy a house in owensboro ky and signed a contract jan 13th 2009 in the contract it stated that "within 10 business days from acceptance PURCHASER agrees to apply for and use their best efforts to obtain a fixed loan VA mortage loan in the amount of 110,000 ....." i put a 500 dollar good faith fee down "...if either party fails to perform his/her obligations herein, the othe party may accept the deposit as liquidated damages, with both parties signing a release or may pursue any available legal or equitable remedy" well i applied for the loan jan 15th and the bank took til march 3rd to even apply for va loan(which means another month of waiting on the bank) with no fault of my own(in fact my original loan officer got fired for “mislocating my loan paperwork” and the head loan person took over end of February) during that time frame of 2 months the military moved me from owensboro ky to 1hour north to evansville IN... i backed out of the loan on march 6th due to living so far away and the bank not doing its job... i told the realitor to keep the $500 deposit and now they are threatening to sue me.... I can get military orders showing the relocation and I can get a letter from the bank im sure stating the situation… how likely am I to be sued and lose? And how much am I looking at losing…

In order to win, they would need to show that you did not use your best effort to secure the loan. You could stand to lose any decrease in the value of their house if they can prove that they had to sell it for less. Have you browsed through the information in LawInfo's Free Legal Resource Center to learn more about your issue yet? See: http://www.lawinfo.com/consumer.html. You can certainly try to speak to a lawyer to determine what legal options may be available. In the meantime, you may be able to learn more on your own. Search the "Free Legal Resources" tab, or browse the Consumer Resources. Good luck.