Carrie Crowell - Keller Williams Realty,
Agent, Southaven, MS
Summer, I don't know all of the details, but my guess is, if you are currently paying a mortgage and are trying to get another loan, you would not qualify because your debt to income ratio would be too high! Talk to your lender or any lender and get them to run the number for you! At the 45 days, you will have to walk away or try to get the seller to renegotiate at that time and allow you more time with a contingency! Good luck.
Sylvia Barry, Realtor, MAS, ePRO,
Agent, Marin County, CA
Hi Summer:
I just read your other question. Yes, you should try to see if you can still get a contingent upon the sale of your house with a clause allowing the seller to give you 72 hour notice should there be another interested buyer.
Normally, to protect my buyers, I would not recommend the 72 hour clause, but since you kind of got yourself into a bind by not researching fully before you selected an online mortgage broker as well as signing to purchase without knowing the whole implication, I would be very happy if the seller allows me to do contingent upon sale of my house at this stage (sorry, don't mean to sound harsh, but that's what's going on here)
Because if they don't let you do contingent upon the sale of your house, then when the 45 days comes along and you have to remove your financing contingency, you will either have to remove that or you can be served with a notice to perform (I assume Tennessee has this also), and the seller can demand that you remove the contingency or get out of the contract completely. Hopefully you don't lose any deposit over this.
On your contract, did you specify the uppoer limit of the financing terms, another to protect buyers - if you can't get the loan that's equal or better than the terms specified, you can cancel the contract without penalty.
So, the details are all in your contract.
Good Luck!
Sylvia
I just read your other question. Yes, you should try to see if you can still get a contingent upon the sale of your house with a clause allowing the seller to give you 72 hour notice should there be another interested buyer.
Normally, to protect my buyers, I would not recommend the 72 hour clause, but since you kind of got yourself into a bind by not researching fully before you selected an online mortgage broker as well as signing to purchase without knowing the whole implication, I would be very happy if the seller allows me to do contingent upon sale of my house at this stage (sorry, don't mean to sound harsh, but that's what's going on here)
Because if they don't let you do contingent upon the sale of your house, then when the 45 days comes along and you have to remove your financing contingency, you will either have to remove that or you can be served with a notice to perform (I assume Tennessee has this also), and the seller can demand that you remove the contingency or get out of the contract completely. Hopefully you don't lose any deposit over this.
On your contract, did you specify the uppoer limit of the financing terms, another to protect buyers - if you can't get the loan that's equal or better than the terms specified, you can cancel the contract without penalty.
So, the details are all in your contract.
Good Luck!
Sylvia
Web Reference: http://www.FirstMarinHomes.com
Sylvia Barry, Realtor, MAS, ePRO,
Agent, Marin County, CA
Hi Summer:
Contingency periods are defined by the buyers. However, there are customary length for contingencies, and also artificial ones depending on the needs.
In California, the default on CAR contract is 17 days for Loan, Inspection, Appraisal contingencies, but we can do as quick as 10 days, and if it's an all cash offer, it can be even shorter.
It also depends on how fast your mortgage broker/lender can fund your loan and how fast your service providers (such as inspectors, appraisers, etc) can perform their functions, give you feedback and allow you enough time to review the reports and weight your options. I would suggest to give you enough time in case you might need more inspections (such as specialized inspection after finding potential big problems in certain areas).
What does your Realtor say?
Sylvia
Contingency periods are defined by the buyers. However, there are customary length for contingencies, and also artificial ones depending on the needs.
In California, the default on CAR contract is 17 days for Loan, Inspection, Appraisal contingencies, but we can do as quick as 10 days, and if it's an all cash offer, it can be even shorter.
It also depends on how fast your mortgage broker/lender can fund your loan and how fast your service providers (such as inspectors, appraisers, etc) can perform their functions, give you feedback and allow you enough time to review the reports and weight your options. I would suggest to give you enough time in case you might need more inspections (such as specialized inspection after finding potential big problems in certain areas).
What does your Realtor say?
Sylvia
Web Reference: http://www.FirstMarinHomes.com
Summer,
Home Buyer, Tennessee
the reason I asked this question is because I just came across that question I asked the realtor and the answer I jotted down was 45 days. So what happens then if the contingency is removed? I'm in a special situation and can't close on the house until I sell my current home. It's almost 45 days now since I signed the purchase contract and I don't want that contingency removed. My contract contingency is in getting financed. It says nothing about having to sell my house first. Am I screwed?
