Problem with Mortgage company - Posted by rob day

Posted by Tom – IN on July 16, 2001 at 13:21:30:

I think that your fears have come true. But if the seller is still in there, try and negotiate an extension, and look for a new mortgage company.

Problem with Mortgage company - Posted by rob day

Posted by rob day on July 16, 2001 at 08:29:33:

Folks,

I have an interesting situation. I have been dealing with a mortgage company for a deal and they have been terrible. I do not get return phone calls, and I am susposed to close in 2 weeks and I have not heard if I am even qualified for the financing or what rate I am getting. Anyway here is the problem the clause in the contract says I was susposed to have confirmation fo financing by July 5th or else agreement is in default. Seller is getting anxious now because we have not heard. If we can’t come to an agreement with closing am I in default of the agreement because I did not provide confirmation of financing by a specific date? Also are they (the seller) entitled to keep the deposit, if they are then can I go after the mortgage company for the deposit that I have at risk (if the seller feels that he does not want to treturn it to me), because they did not live up to their end of the agreement?

Please let me know your thoughts.

Thanks in advance

Rob

Re: Problem with Mortgage company - Posted by Chris(FL)

Posted by Chris(FL) on July 16, 2001 at 23:37:31:

Normally, the seller is entitled to the deposit if you fall through unless you get something, which you have the right to do, on the sales contract that states you are entitled to a return of your deposit if you do not obtain financing. Your deposit as of now would otherwise be seen as “liquidated damages”. The damages are the time that has been lost by the seller in locating a qualified buyer. Brokers make a lot of money every year on getting their cut of deposit $. You said “listing agent”. Does that mean that the agent is acting in a exclusive single agent for the seller, or is he/she acting as a transaction broker? If the latter, then ask them what they think. They have just as much responsibility to you as the seller, which is not much either way. But if the agent is a single agent for the seller then dont say anything just yet. They have to run back and tell them you are worrying about your deposit.

I agree with Tom. Ask for an extention. If they deny an extention then you have the ability to contest the keeping of your deposit. That puts the broker in a real pickle and they have to do all sorts of legal stuff to try and mediate. That may be used as leverage if it comes down to it.

Good luck. I hope the deposit isnt a whole lot.