Louise - As far as getting out of the contract, I'd consult your Realtor .... assuming you have one. The loan office not returning phone calls is a huge red flag. He/she should be in touch with you every step of the way ... whether the news is good/bad/indifferent.

A lot of sales contracts are contingent upon getting financing and if you can't secure financing, are sometimes able to get your earnest back and so forth.

If you need any advice or help to proceed, feel free to get a hold of me at jsardi@fcegi.com or see my profile for my other contact info. My concern would be to make sure you were being put into a loan product that met your particular situation and needs. Irregardless, the last thing you want is to be Mortgage Poor.

Jason

Tue Jul 8 2008, 07:10

Unfortunately, contracts are generally very specific regarding under what circumstances you can get out of them without losing any earnest money you have put down. You would have to carefully review your contract with your realtor to see what options may be available to you.

As for the issue with the loan officer, I find that to be very unprofessional Do you have an estimated date of settlement and did he/she ever discuss locking an interest rate with you? I am a branch manager of American Mortgage and we specialize in all types of mortgage programs which might be of interest to you in selecting financing for your new home. I am including my contact information below should you wish to contact me with any questions regarding your purchase and financing.

Robert A. Small
Mortgage Specialist
American Mortgage, Incorporated
Toll Free (888) 270-9808
Cell (443) 417-8944
Fax (206) 350-4491
Email rsmall@e-americanmortgage.com

Fri Jul 4 2008, 05:24

The Pennsylvania Assoc of Realtors agreement of sale has a space to indicate the maximum interest rate that you can tolerate. Check to see if your agreement specified a max interest rate, and then compare that to the rate that the lender is able to get for you. That may be your out.

Eileen's Green Team

Thu Jul 3 2008, 05:27

You are smart to evaluate your current economic circumstances, before purchasing any investment; unfortunately, you would have been even smarter to do this prior to signing any sales agreements.

Your contract is legally binding, based upon the specified terms and conditions contained within it; and, an attorney can best advise you now as to what loses you may have if you attempt to cancel it now.

Do not expect the Sellers to agree easily; many more are trying to force a compliance to the terms, or even more now, simply withholding a earnest fund release until they receive another offer, which can take months in this market.

Sat Jun 21 2008, 10:46

Louise,

Check your contract for dates. It sounds like all of your contingencies have been met except perhaps the mortgage committment. That occurs once the lender has gone thru all the info you provided, the appraisal came in ok and the underwriters have said it's a sound loan. If any of your circumstances have changed where your income has decreases or your debt ratio has changed, you may no longer qualify for the loan at the same interest rate. Did you lock in your interest rate? If you did, it can't change unless the date has passed. Check any paperwork that you signed from the lender. It should specify the interest rate that was agreed to. Call your realtor for assistance in contacting your lender.

Hope this helps.

Sat Jun 21 2008, 09:50

Louise,

Deb is right, without reading your contract its a little hard to tell what you can and can't do. Being a mortgage specialist there are times that I can get a buyer out of a sales agreement. One of the ways is that if they can't afford the payment then the loan is null and void and I get a turn down letter from the bank and then send it to both listing agents and buyers agents and the buyer then recieves back their earnest money. The other way is on the contract it says that you are to recieved an interest rate of x and not to exceed y. If your interest rate exceeds your limit you can back out of your loan. Please feel free to contact me should you have any questions. Thanks and good luck

Mon May 12 2008, 19:26

Without reading your contract, it's not possible for me to give you specific advice other than this: call a local real estate attorney and make an appointment for a one hour consultation. Bring all your paperwork-contracts, loan info, escrow or settlement documents,etc with you. Best of luck!

Mon May 12 2008, 18:40