About Brettney Gunning-Rausch Expertise I am a licensed real estate agent for RE/MAX in Pennsylvania. I am available to answer any question you may have regarding buying or selling a home.
Experience Residential
Organizations PAR- Pennsylvania Association of REALTORSŪ
MCAR- Montgomery County Association of REALTORSŪ
Education/Credentials The Accredited Buyer Representative (ABRŪ) designation
Executive Club Award 2006
Expert: Brettney Gunning-Rausch Date: 10/6/2007 Subject: home purchase
Question HI BRETTNEY MY QUESTION IS IM BUYING A HOME IN PA MY CONTRACT SAYS THAT I HAVE A MORTGAGE CONTINGENCY AND A COMMITMENT DUE DATE IF I DON'T GET A COMMITMENT LETTER BY THE DUE DATE CAN I LOSS MY ESCROW DEPOSIT OR CAN I CANCEL BEFORE THE COMMITMENT DATE IS DUE. MY AGENT IS THE SELLER AGENT ALSO AND HE IS TELLING ME THAT I WILL LOSS MY DEPOSIT. THE AGENT ALSO GOT ME THE MORTGAGE BROKER. I HAVE A HOME THAT I WAS RENTING TO A FRIEND AND NOW HE BACKED OUT THE MORTGAGE BROKER TOLD ME TO GET HIM A LEASE I TOLD THAT THE PERSON HAS BACKED OUT SO NOW I THINK I WONT GET APPROVED FOR THE LOAN I DID NOT PUT THIS IN THE CONTRACT BUT I HAVE A MORTGAGE CONTINGENCY BUT NOW THEY BOTH ARE TELLING ME TO TRY RENT THE PROPERTY BUT I DON'T WANT TO TAKE NO CHANCES BECAUSE I COULD NOT AFFORD 2 MORTGAGES. CAN I CANCEL IF HE DOES NOT GIVE ME A COMMITMENT BY THE DUE DATE. THANK YOU
Answer This is a tricky situation..If you can not rent out your home then obviously(hopefully) that is income that you need to qualify for a loan for the new home. If you can not get approved if you do not get a renter then you will get your deposit monies back...because you made the agreement contingent upon you receiving a mortgage and if that is not possible without a renter then you will get your deposit monies back.in the agreement of sale read paragraph D (1-4) D says...If sellers does not receive a copy of Buyers mortgage commitment by due date then buyer a seller agree to extend the mortgage commitment date until seller terminates this agreement by written notice to buyer..so to answer you question if you do not get the commitment over to them it does not terminate the agreement until the seller puts it in writing. Hopefully you will not qualify for both if there is no renter found!! Good Luck and let me know if there is anything else I can help you with.
