Mortgage clause contingency - Posted by anony

import · November 13, 2005, 10:19pm

Re: Mortgage clause contingency - Posted by JohnBoy

Posted by JohnBoy on November 13, 2005 at 23:19:00:

Unless your purchase agreement “specifically” states your contract is subject to you obtaining financing at X% interest with no prepayment penalty, then you are obligated to close on the sale. Your problem with your loan officer lying to you about there not being a prepayment penalty has NOTHING to do with your contract to buy the home. You were APPROVED for the financing. Period! Now you discovered you may have been lied to about certain terms of your loan. That has NOTHING to do with your contract to purchase the home. That is entirely a different matter. If you don’t complete the purchase you will lose any earnest money paid and you are subject to being sued by the seller for failing to close.

BTW, the mere fact the loan officer “verbally” said to you there is no prepayment penality is not fraud. That is why you are given a good faith estimate. If the good faith estimate stated there is no prepayment penalty and then they put a prepayment penalty in your loan, then that would be fraud. Anything your loan officer TOLD you means nothing! The ONLY thing that matters is what they tell you in WRITING! Do you have anything in WRITING stating you would not have a prepayment penalty??? If not, you have no case as far as being able to back out your purchase agreement with the seller. Your purchase agreement was subject to you getting approved for financing. You got APPROVED! Yes or no?

Your PURCHASE AGREEMENT with seller says NOTHING about you being able to obtain a loan with NO PREPAYMENT PENALTY. Yes or no???

But as long as you THINK the loan officer committed fraud by merely stating to you there is no prepayment penalty then SUE HIM! Have him PROSECUTED! Fraud is ILLEGAL! Fraud is a criminal offense as well as a civil offense.

If I were the seller and if you did not close by the closing date the contract would become null and void and you would not get a dime of your earnest money back. YOU breached your contract with the seller. Plain and simple!

import · November 14, 2005, 8:11pm

Re: Mortgage clause contingency - Posted by anony

Posted by anony on November 14, 2005 at 21:11:03:

But you forget what I indicated in my posting that the loan officer gave me the disclosures for signing and I suddenly found some hidden or different clauses from what I was told and I stated in the application form. So I will not sign the disclosure documentation unless the hidden and disagreed clauses are removed. You can image what the pre-approved loan will be if I do not sign the required documents. It will become a plain paper. Nothing. You can call the loan is eventually denied by the lender or rejected by the borrower in either way. But there is no loan from this lender at all, who told me a lie. Now the issue is whether I am forced to get this loan (to sign the loan documents) from this lender in order to have the contract executed. Apparently, no one can force me to do so; especially you know the reason why I cannot accept the loan from this lender.

Next, whether should I try to get the loan from the other lenders? Yes, I should. However, if I cannot find the rate, year etc listed in the contract, should I exhaust the other mortgage programs which have the high rate, different term or loan amount? No, I will not. If you think you should, that is your business.

Anyway, I hope everyone learns from my story, you should be very careful when you face some professionals regardless of they are loan officer, attorney, car dealer and so on. They sometimes trick you, and then insert some hidden clauses, terms etc. that you may never know or cannot agree with. Fortunately, I am not given the disclosure at the last minute, at the closing. So, I have time to find the problems. Be careful and be careful.