Question Details

Michel, Both Buyer and Seller in 06850

As a buyer, can I easily cancel my contract using the mortgage contingency?

Asked by Michel, 06850 Thu Mar 28, 2013

If I sign a contract and change my mind later on. Can I just cancel the purchase without penalty by saying that I was not able to get a mortgage?

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Answers

2
Nope - you can't just arbitrarily decide not to move forward and lie about being turned down for the mortgage.

You will have to show that you applied for the loan in GOOD FAITH, and did what was required to be approved

If the seller suffers a financial loss due to you breaching the contract, they may be able to keep your deposit, and/or sue you for damages.
0 votes Thank Flag Link Thu Mar 28, 2013
Hi Michel,

The seller has the right to see proof you your mortgage denial. If you don't have that, they may be able to keep your earnest money deposit.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Thu Mar 28, 2013
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