An Indian family taking the final walkthrough of their $658,000 home ended the day at a loss - emotionally and financially.

Ali Asgar Kaderbhai had already signed the contract and put down a $30,000 deposit on a new home for his family on Davis Islands in Tampa, Florida.

When they arrived at the home, dressed in traditional Sari garb, two neighbors allegedly emerged and asked, 'are the f***ing ragheads moving in?'.

The pair then threatened to break windows, and burn the house down if they decided to call the neighborhood their home, according to court documents.

Ali Asgar Kaderbhai had already signed the contract and put down a $30,000 deposit on a new home for his family on Davis Islands in Tampa, Florida when they were racially abused

Neighbor David Howard, pictured, allegedly threatened to 'burn down' the house and began cursing at the family and their realtor

The suit, however, is against the original owners of the home which was selling for $658,000.

When the family decided they did not feel safe in the neighborhood following the incident, the sellers, Herbert and Janice Donica refused to refund their $30,000 deposit.

'The Donicas think that what their neighbors did was reprehensible,' attorney Richard McIntyre told ABC Action News.

'But, the Donicas have substantial damages as a result of Ali's failure to close.'

The suit, however, is against the original owners of the home which was selling for $658,000

Ali could not even bring himself to describe the hatred spewed at him as he stood with his bewildered family and their realtor, who called 9/11 and asked if it constituted as a hate crime.

Ali said he felt 'Only shock, shock, and disbelief,'

'It's so challenging, even for me to express it, it's very hard actually, and especially on Davis Island you would not think in a thousand years (it) might happen.'

When the family decided they did not feel safe in the neighborhood following the incident, the sellers, Herbert and Janice Donica refused to refund their $30,000 deposit

According to the suit, neighbor Debbie Olson stormed out of her home, shouting that the Ali Asgar's were 'f***ing up the neighborhood.'

Ali's attorney believes that homeowner Herbert Donica should be held responsible as he should have known that his racist neighbor would pose problems for the family

She then knocked on her neighbor David Howard's door, who approached the family and began cursing at the family and their realtor.

He also allegedly accused the Donicas of 'lying' and that 'those people' would not be moving into the home.

Ali's attorney believes the Donica family should be held responsible for the sale falling through - as they should've known that having a neighbor who was racist would cause problems for the new buyers.

The suit alleges three counts which include fraud in the inducement, intentional infliction of emotional distress, and tortious interference with a contract.

Another resident of the neighborhood, who is also Indian, has said that she has felt hostility from the accused neighbors and 'wasn't surprised' that the incident occurred.