Le sigh. The big mess is fixed. As friends on facebook pointed out, the "problem" was the buyer (SM*) & her lawyer's problem, but since she lost the financing, it became our problem.
What confuses me the most: her realtor (JT*) told us that SM lives in Ottawa and was moving to Kingston. JT wanted us to lower our house price because we couldn't close on her preferred date (Sept 18), so SM would have to live in a hotel for a couple weeks because she was moving to Kingston on September 18, from Ottawa. That's over 200 km away! However, now we've found out that in fact SM lied to us: she does in fact live in our city. In fact, she lives about a 15 minute walk away from where we live! Something very bizarre happened here. SM is lying outright, threatening to sue us over a couple hundred dollars, and now it turns out she hadn't sold her house. And her realtor, JT, obviously knew SM lived in Kingston. So JT is a dishonest realtor, and I believe lying like this is unethical.
Long story short: we are approved to buy our new house before our current hosue sells. So it doesn't matter now! We will briefly own two houses, which will be very tight in the budget. But do-able. And once our house sells, our finances will free up! :)
Wow, how did we get caught up in this mess? We don't have drama in our lives. This isn't us.
*Initials of names may be changed for legal reasons/protection.
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What a nightmare. Sorry you have to deal with this. At least you're still going to get YOUR house.
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