Expert: Hans Weber, Licensed Broker Associate - 3/10/2009

Question
I reside in PA and recently inherited a property in NY.  The house is on the market and an offer has been made and both parties have signed an agreement of sale.  The buyer has also put down a deposit.  However, the buyer has not secured a mortgage as per the terms of the contract.  He has been approved for the mortgage but is neglecting to sign the necessary paperwork to obtain it and keep asking for more time.  What can I do as the seller regarding this matter?

Answer
Hello Kristin,

Thank you for your question.

Has the buyer gotten their mortgage commitment or only been preapproved?

If the time allowed to get the mortgage commitment has come and gone without a timely written request for an extention you can cancel the sale and as it sounds in this case, the buyer is deliberately delaying and not performing you may be able to keep their deposit.  Contracts usually have mortgage contingencies to protect a buyer from losing their deposit if they don't get a mortage at prevailing rates, but not if they deliberately don't perform routine requirements of the mortgage application process.  Perhaps that threat will make them perform, sign and move to closing.

This is a legal matter that will require time in court and money so perhaps neither of you will want that.  It may be easier to get a new buyer.

The market is picking up!

Good luck,

Hans