New York:
We entered into a contract to buy a home in 10/04. We were given a closing time of 5/16/05-06/16/05 as we had informed seller that we had to wait until we had owned home for 2 years. Seller agreed to that and we also agreed to pay seller at closing additional $4M for the time delay. It is now 6/14/05 and we have been unable to sell our home. We applied for a bridge loan to get us the money we would need to close on the new home, but when that was approved the bank told us that the orginal mortage commitment was null and void because the income/ratio to loan was too high. They have said that they will give us the mortgage only if we sell the first home.
Does the fact that our mortgage is now denied get us out of our contract to purchase the new home? What are our options? The sellers attorney does not seem to care and told us that if we do not close they will take our deposit, which is substantial ($48K). We asked if they would be willing to extend the contract, to which they told us no. Any advice would be greatly appreciated. Thanks
We entered into a contract to buy a home in 10/04. We were given a closing time of 5/16/05-06/16/05 as we had informed seller that we had to wait until we had owned home for 2 years. Seller agreed to that and we also agreed to pay seller at closing additional $4M for the time delay. It is now 6/14/05 and we have been unable to sell our home. We applied for a bridge loan to get us the money we would need to close on the new home, but when that was approved the bank told us that the orginal mortage commitment was null and void because the income/ratio to loan was too high. They have said that they will give us the mortgage only if we sell the first home.
Does the fact that our mortgage is now denied get us out of our contract to purchase the new home? What are our options? The sellers attorney does not seem to care and told us that if we do not close they will take our deposit, which is substantial ($48K). We asked if they would be willing to extend the contract, to which they told us no. Any advice would be greatly appreciated. Thanks