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We are in process of negotiating a Contract of Sale. First viewing of the contract went well; there were minor correction but nothing major. Few days ago we received back a revised contract from the seller's attorney and interestingly everything else is in order except for the paragraph that in the original contract listed that a seller agrees with including a mortgage contingency it now states that the seller does not agree with including a mortgage contingency!
We were approved by the Coop board and we have a commitment letter from the bank but we are not willing to risk loosing our down payment if something should go wrong. Is this really it for us! Any advice is highly appreciated.
Thank you.
I'm not sure where you are. In my market, a contingency for financing is standard.
I wouldn't agree to a contract without it. Even if you're pre-approved, have good credit, down-payment, etc., you never know for sure. Especially with the credit markets the way they are, and with the market in decline. --What happens if it doesn't appraise? Are you still obligated to buy it at the contract price? Even if the bank won't finance it, because it's not worth that much?
Call the attorney who wrote the contract or your attorney and advise them you aren't a cash buyer but someone going for and approved for a mortgage, that there has been an error made and you would like it corrected before signing.
I agree with palmcoasting, and make sure you have a copy of the contract where the seller agreed to the mortgage contingency to being with so you can back up the fact that an error had been made.
It seems to me where they're going with this is in case your lender goes belly up and you lose the loan or, the house doesn't appraise at an amount the bank will lend on they could still force you to buy it. Sneaky, real sneaky....
We are in process of negotiating a Contract of Sale. First viewing of the contract went well; there were minor correction but nothing major. Few days ago we received back a revised contract from the seller's attorney and interestingly everything else is in order except for the paragraph that in the original contract listed that a seller agrees with including a mortgage contingency it now states that the seller does not agree with including a mortgage contingency!
We were approved by the Coop board and we have a commitment letter from the bank but we are not willing to risk loosing our down payment if something should go wrong. Is this really it for us! Any advice is highly appreciated.
Thank you.
you should have a due dilligence period at least if you haven't secured a definate mortgage by the end of due dilligence you can still back out of it without losing anything before the expiration of that time
did you go back to your agent and say "hey this is wrong and we need to fix it"
Tuxi01 - Is an internet forum really the place to be seeking advice of this nature? Get a real estate agent or an attorney.
Sometimes it's a good place to get a feel for a problem before shelling out bucks to a lawyer and there's many here that are quite intellegent and been there done that a few times.
That being said if any of the down sides listed ring a bell I'd at least suggest that you bounce it off a legal eagle in your area.
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