Can't Unqualify for a loan

[Mochos]

We entered into escrow (CA) a few days back. We dropped our inspection contingencies (due to a prior inspection). During this time my wife's pregnancy has taken and turn, we need to get out of escrow without risking our deposit... as we may need to use our funds for medical expenses.

We still have a loan contingency, however we called our lender to ask that they dequalify us for the loan, as that appears to be our only way out. The lender says that can't, since we do qualify for the loan and even more if we wanted.

Is there anyway to get out without risking our deposit? Thanks in advance.

[justalayman]

short of simply asking the sellers to have a bit of compassion and releasing the deposit, not much.

[HomeGuru]

Originally Posted by Mochos

We entered into escrow (CA) a few days back. We dropped our inspection contingencies (due to a prior inspection). During this time my wife's pregnancy has taken and turn, we need to get out of escrow without risking our deposit... as we may need to use our funds for medical expenses.

We still have a loan contingency, however we called our lender to ask that they dequalify us for the loan, as that appears to be our only way out. The lender says that can't, since we do qualify for the loan and even more if we wanted.

Is there anyway to get out without risking our deposit? Thanks in advance.

**A: look for any other contingency in the contract.

[Mochos]

Thank you both your replies.


Since my original post, the following happened which made the situation worse...

While still within our loan contingency period, and while still working with our lenders... our agent spoke with the sellers and their agent and it appeared that they would show us some compassion. They agreed to cancel escrow and return our deposit; we signed our cancelation "under mutual agreement" and that the deposit be returned. We were very much relieved thinking it was over we didn't move to get the disqualification letter from our lenders. They relisted the property that day (Friday).

That Monday we then received a letter from escrow signed by seller that they mutually agree to cancel escrow; but they had now changed position and want to keep the deposit stating we were in "default". The day after the 10 day loan contingency.

We never removed our loan contingency. They never issued a NBP. That Tuesday, we spoke to the original (major) lender we had submitted our loan approval letter from; they stated since my wife has reduced income due to her situation, they disqualified us.

The other lender, whom we had worked with after submitting the approval letter from, and had given their agent permission to speak with regarding our approval said our only option was to withdraw the loan application.

We're now stuck and very much confused. They seem to think they can keep our deposit, we only have their prior verbal agreement. We'll likely need to use and spend money on an RE attorney instead of using it to seek additional medical advice.

Having them go back on their word, or rather their strategy to have us cancel and run out the clock has placed a tremendous amount of stress and has made my wifes condition worse. I too am stressed... not only are we in limbo regarding our ability to seek outside medical treatment; just the thought of losing so much money we worked so long and hard to save.

Just curious how some of you feel about our chances of getting our substantial deposit back?

Thanks, and I appreciate it.

[HomeGuru]

Originally Posted by Mochos

Thank you both your replies.


Since my original post, the following happened which made the situation worse...

While still within our loan contingency period, and while still working with our lenders... our agent spoke with the sellers and their agent and it appeared that they would show us some compassion. They agreed to cancel escrow and return our deposit; we signed our cancelation "under mutual agreement" and that the deposit be returned. We were very much relieved thinking it was over we didn't move to get the disqualification letter from our lenders. They relisted the property that day (Friday).

That Monday we then received a letter from escrow signed by seller that they mutually agree to cancel escrow; but they had now changed position and want to keep the deposit stating we were in "default". The day after the 10 day loan contingency.

We never removed our loan contingency. They never issued a NBP. That Tuesday, we spoke to the original (major) lender we had submitted our loan approval letter from; they stated since my wife has reduced income due to her situation, they disqualified us.

The other lender, whom we had worked with after submitting the approval letter from, and had given their agent permission to speak with regarding our approval said our only option was to withdraw the loan application.

We're now stuck and very much confused. They seem to think they can keep our deposit, we only have their prior verbal agreement. We'll likely need to use and spend money on an RE attorney instead of using it to seek additional medical advice.

Having them go back on their word, or rather their strategy to have us cancel and run out the clock has placed a tremendous amount of stress and has made my wifes condition worse. I too am stressed... not only are we in limbo regarding our ability to seek outside medical treatment; just the thought of losing so much money we worked so long and hard to save.

Just curious how some of you feel about our chances of getting our substantial deposit back?

Thanks, and I appreciate it.

**A: don't know since we can't review your contract. Get an attorney to do so.