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Financing in 15236 : Real Estate Advice

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Fri Apr 11, 2014
Dan Haeck answered:
A mortgage contingency is a safeguard to a buyer that is in need of mortgage financing in order to purchase a property. The mortgage contingency allows the buyer to back out of the purchase and puts him/her in a great position to get their good faith deposit returned should the mortgage be denied. If a buyer waives the mortgage contingency, it means that they are still obligated to purchase the property, even if they are denied a mortgage. Typically, this scenario would only take place if the buyer wants a mortgage but does not require one to purchase the property, or if the buyer intends on paying cash for the property from the beginning. Unfortunately the only other way would be if the buyer's agent fails to explain this to the buyer and have the buyer elect the mortgage contingency on the agreement of sale. This puts the good faith money in jeopardy should the mortgage not be approved. ... more
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