Can I get out off my contract

What is the name of your state? pa

i signed a contract with the real estate agent. the broker we were using gave us all kinds of trouble. first the loan was originally $50,000, then it dropped to 35,000 so we had to go with a different bank. in the mean time, the guy that was working on our file quit and never gave anyone our file. then we finally got a new morgage officer. they kept postponing the closing and adding new fees. we signed papers with the morgage officer for a $50,000 loan. They never provided us with new papers for the new loan. we applied for 10% down. we were told everything was the same as the original loan, except it was now for 35,000. well, they never told us, or provided any papers, that the down payment went up and the interest rate. they informed us of this the day before the closing over the phone. Well, we don't want the loan with these conditions now. We never got a written committment from the bank, we only recieved an estimated closing cost that said it was neither a contract nor written committment. The seller and his attorney won't refund our initial deposit now. they are saying we turned down the loan therefore we violated the contract and the seller keeps the money. is there anything i can do about this.

[HomeGuru]

Originally posted by Jamie24kat
What is the name of your state? pa

i signed a contract with the real estate agent. the broker we were using gave us all kinds of trouble. first the loan was originally $50,000, then it dropped to 35,000 so we had to go with a different bank. in the mean time, the guy that was working on our file quit and never gave anyone our file. then we finally got a new morgage officer. they kept postponing the closing and adding new fees. we signed papers with the morgage officer for a $50,000 loan. They never provided us with new papers for the new loan. we applied for 10% down. we were told everything was the same as the original loan, except it was now for 35,000. well, they never told us, or provided any papers, that the down payment went up and the interest rate. they informed us of this the day before the closing over the phone. Well, we don't want the loan with these conditions now. We never got a written committment from the bank, we only recieved an estimated closing cost that said it was neither a contract nor written committment. The seller and his attorney won't refund our initial deposit now. they are saying we turned down the loan therefore we violated the contract and the seller keeps the money. is there anything i can do about this.

**A: please post word for word exactly what your financing contingecy states.
Note: there may be more than 1 paragraph in various sections of your contract.

Homo -
Why didn't you offer this same post to the guy trying to get of his rotten deal?

Instead you chose to sling mud - Dumb move. trust me.

DT (For now)

Originally posted by HomeGuru
**A: please post word for word exactly what your financing contingecy states.
Note: there may be more than 1 paragraph in various sections of your contract.

amount of morgage loan $30,000/minimum term 30 years
conventional loan, interest rate 8.75%; however buyer agrees to accept the interest rate as may be committed by the morgage lender, not to exceed a maximum rate of 9.25%.
c.) 1.morgage committment date 2-4-03. if a written committment is not recieved by seller by the above date, buyer and seller agree to extend the morgage committmentdate until seller terminates this agreement in writting by notice to buyer.
2. upon receipt of morgage committment, buyer will promptly deliver a copy of the committment to seller.

if this agreement is terminated as specified in paragraph 6(c), or the morgage loan is not obtained for settlement, all deposit monies paid on account of purchase price will be returned to buyer.

the interest rate went form 8.75% to 11.727%. big jump without notifying me until right before closing. we never did get a written committment for our loan. therefore the morgage loan was not obtained for settlement? correct or no?

[HomeGuru]

Originally posted by Jamie24kat
amount of morgage loan $30,000/minimum term 30 years
conventional loan, interest rate 8.75%; however buyer agrees to accept the interest rate as may be committed by the morgage lender, not to exceed a maximum rate of 9.25%.
c.) 1.morgage committment date 2-4-03. if a written committment is not recieved by seller by the above date, buyer and seller agree to extend the morgage committmentdate until seller terminates this agreement in writting by notice to buyer.
2. upon receipt of morgage committment, buyer will promptly deliver a copy of the committment to seller.

if this agreement is terminated as specified in paragraph 6(c), or the morgage loan is not obtained for settlement, all deposit monies paid on account of purchase price will be returned to buyer.

the interest rate went form 8.75% to 11.727%. big jump without notifying me until right before closing. we never did get a written committment for our loan. therefore the morgage loan was not obtained for settlement? correct or no?

**A: something does not seem right. If your contract specifed a $30K loan, why did you apply for a $50K loan? And even when the loan amount got knocked down to $35K, that amount would still meet the contingency in the contract of a mortgage loan $30K minimum.
If you got a loan committment that stated an interest rate of 11.727%, then because that rate exceeded the rate as specifed in the contract, you would be allowed to terminate for just cause.
Who helped you write the purchase contract? It is very poorly written and sides with the Seller. It appears that you did not have your own real estate agent.

[BrokerRE]

Here is a good question.

How much is the purchase price of the home?

HomeGuru is correct, according to the contract, you're unable to get financing under the terms provided for in the contract. You can't get a loan under 9.75%, so you have the option to cancel the contract under the financing contingency and should recieve 100% of your earnest money deposit back.

If the purchase price is $50,000 and you're only able to secure a 35000 loan, that means that you've only been approved for 70% financing? This doesn't seem right. I have people with bankruptcies that are less than a year old, and I'm able to get them 90% financing.

Cancel this contract, and start over with a brand new Real Estate Agent, and a new mortgage Broker.

P.S. find your mortgage broker first, and pre-approved. This makes looking for a home much easier.

[HomeGuru]

Writer, what kind of property are you buying? Is it a condo, mobile home etc??

Originally posted by HomeGuru
**A: something does not seem right. If your contract specifed a $30K loan, why did you apply for a $50K loan? And even when the loan amount got knocked down to $35K, that amount would still meet the contingency in the contract of a mortgage loan $30K minimum.
If you got a loan committment that stated an interest rate of 11.727%, then because that rate exceeded the rate as specifed in the contract, you would be allowed to terminate for just cause.
Who helped you write the purchase contract? It is very poorly written and sides with the Seller. It appears that you did not have your own real estate agent.

we first applied for a $50,000 loan because we didn't have a home in mind yet, we got the pre-qual. for a 50,000 when we put a bid in on this house they took our first offer at 35,000. therefore we changed the loan amount with our morgage officer. but we had to go with a different bank because it was such a low loan. they changed the down payment from 10% to 15% and also the interest rate and no one told us about it.
we did have a real estate agent and a morgage officer and neither one did anything for us. the contract was written by our agent. i miss wrote the purchase price in the quote before this. the purchase price ofr the home was 35,000. i just want my down payment back. we already took a big loss in other things that we had to pay for already.

Originally posted by HomeGuru
Writer, what kind of property are you buying? Is it a condo, mobile home etc??

it's a single family home.

[Souix]

Originally posted by Jamie24kat
it's a single family home.

**A condo, townhouse, manufactured home, site built are all single family homes. Just wondering why your interest rate and down payment are so high. Do you have a low credit score or something? If not, you need to find yourself a new mortgage broker, unless, you are buying a manufactured home located in a mobile home park - then that sort of down payment and interest rate woould be the norm.**

[BrokerRE]

Let your agent know that you're unable to get financing for the terms listed in the purchase agreement.

He should give you a 100% return of your deposit.

Are you sure you're not making a mistake? I know 11+% interest seems high, but remember: "Rent is 100% interest". 11% is cheap compared to that. On a house that is only $35,000, it's hard to make a major error. You don't have much to lose.

[HomeGuru]

Originally posted by BrokerRE
Let your agent know that you're unable to get financing for the terms listed in the purchase agreement.

He should give you a 100% return of your deposit.

Are you sure you're not making a mistake? I know 11+% interest seems high, but remember: "Rent is 100% interest". 11% is cheap compared to that. On a house that is only $35,000, it's hard to make a major error. You don't have much to lose.

**A: unless the home was advertised as a fixer-upper but in reality is a tear-downer. Maybe the home has lead-based paint, asbestos and radon gas. Maybe the ground termites are holding hands. Maybe the roof leaks, the foundation is cracked and the electrical and plumbing systems are outdated and obsolete. Maybe the drain field does not drain and the well is contaminated**************..