Expert: Hans Weber, Licensed Broker Associate - 1/18/2007

Question
I have an issues with buying a condo in the state
of MD.  When I decided to purchase (for investment)
there were lenders in partnership with the
developer, offering incentives such as cash at
closing, etc.  At the time, I did a preliminary
application and it looked decent. Now that is close
to closing, the lender who was slow getting back
to me has shown me a higher interest rate, making
the property unaffordable to me, in that the rent
I can get won't even come close to covering the
mortgage.

My question is, how can I get out of this deal and
get my deposit of about $15k back?

Answer
Hi Quentin,

This sounds like you need to consult your lawyer.

I don't know Maryland contract law, but you would be guided by the contract.  Are the developer's lender's terms in the contract?  Or do you just have a mortgage contingency?  If you are unable to get financing the contract would then be ended.  

Your other alternative is to sell the unit before you close.

Hans