Connie: John is right, yet again. What fee? What for? To whom paid?

First, read your contract. It will tell you of any fees that you owe the seller. Then there might be a fee that the mortgage company wants. Note that I say "wants." I'd tell them that you want any fees returned that were you paid that were unnecessary, such as an appraisal fee generated BEFORE they had checked your credit and came up with the need for a co-signer. Finally, there may be a fee the attorney is charging you for having gone into the deal as far as he/she has. It could be that it is less than any fee quoted for counsel in the entire deal. This may be a nice way of getting you to at least chip in for the time the attorney has spent.

You might ask him/her if they would let the fee go, since it is obvious that you are not rolling in dough. It can't hurt to ask.

Best regards and I hope that in the near future you will be better able to qualify for a loan. In fact, if you are really intent, you might talk to other lenders. Each one is somewhat different and you might be able to find financing even now.

Bill Holt

Your attorney should answer as to what what this cancellation fee is.
I would not assume that the attorney means that your deposit is to be retained as a cancellation fee. That is a bad assumption.

You should call your attorney again and again and agin if necessary and get an answer to whom this fee is going to, how much and why if you have a mortgage contigency clause in your contract.

Connie,

It really depends on what was in your contract to begin with. Does your contract have a mortgage contingency clause? If it does and you show that you were unable to obtain a mortgage, you or the seller can cancel the contract at any time without penalty.

Second, the seller can opt to cancel the contract with you and return deposit money if both attorneys or parties in this case agree to return deposit money to you, the buyer.

Third, the cancellation fee that your attorney is talking about is your good faith deposit or however much you've given at this point. This means your deposit money can get tied up until both parties agree on what to do with your deposit.

Audeliz Angie Perez
Weichert, Realtors
1307 Stuyvesant Ave
Union, NJ 07083
Web: Http://www.forsalebyangieperez.com
Weblog: http://www.njretoday.com

What did your attorney say what this fee for? Who is the receipient of the fee?

I would think there is a mortgage contingency clause which lets you out of the contract if you can not obtain a mortgage.. I would normally say tyo ask your attorney, but in this case your attorney is telling you about the fee... hhmmm.