Home Buying in New York>Question Details

Dan, Home Buyer in Queens, NY

What fees will I owe if my loan does not close?

Asked by Dan, Queens, NY Thu May 29, 2008

I am in contract to purchase a home. Due to circumstances out of my control, the seller may not be able to close, terminating the contract. I have locked my rate twice and paid for an appraisal. My question is this....What will I owe to the mortgage broker? Origination fees?, Document fees? Rate lock fees?

Help the community by answering this question:


Most fees for searches, documents, title abstracts, appraisal etc. are non-refundable. Origination fees may be refundable depending on the mortgage commitment or other documents you signed. You will probably not owe money to the mortgage broker if the loan does not close (other than fees as mentioned earlier).

Some contracts of sale provide that if the closing does not take place due to the fault of the seller, the seller reimburses you for mortgage and title fees-- read your contract--- better yet, have your attorney read ALL documents you signed to assess which expenses may be recouped. It is not an all or nothing affair.
Any further questions, you can call me 646-714-2720.
0 votes Thank Flag Link Tue Jun 3, 2008
Normally, you will not need to pay anything you havent already. You probably just wont get anything you paid back. sunny_hong@countrywide.com
0 votes Thank Flag Link Sun Jun 1, 2008
You need advice of an attorney. Ask your agent and the manager/broker of your agent's office for a referral to one if you don't have one available or knowledgable.
The seller can't close would mean they are in breach of contract unless there was some contingency that was part of the original agreement.
The appraisal is done so that is an expense, any other inspections, and the rate lock fees are all damages to you by the seller breaching unless there are mitigating circumstances.
0 votes Thank Flag Link Fri May 30, 2008
Jed Lane, Real Estate Pro in San Francisco, CA
You would need to speak to your Bank to see what fees you will incur if you do not close your loan. Depending on the reason that the Seller cannot close, you may be entitled to get reimbursed for some of your expenses. As Gail mentioned, you would need to consult with your attorney. Good luck!
Web Reference: http://teamrjsmith.com
0 votes Thank Flag Link Fri May 30, 2008
Please talk to your attorney; if the seller cannot close, you may have recourse to cover expenses incurred...your attorney will advise you.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Thu May 29, 2008
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