Under contract and didn't get the mortgage, now what?

Asked by MPP, Brooklyn, NY Fri Oct 12, 2007

My lawyer advised me not to speak to the broker until I get my deposit back. The broker keeps calling and calling and calling, telling me he can get another company to give me a mortgage. what should I do now?

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#1, , San Francisco Bay Area
Fri Oct 12, 2007
You didn't qualify. Period.

You are now out of that deal and you can demand your deposit back.

It doesn't matter if the broker says he or she can get you a different losn under different terms and conditions.

The contract was written for specific terms and conditions and if you didn't get that loan you are not obligated to take a different loan. The new loan may noy not be in your best interest.

DOn't back down. Demand your deposit back unless the broker can give you the loan you applied for.

You are in the drivers seat. You do not need an attorney for this.

The operative word here is "NEXT!

Move on to the next mortgage broker. They are not looking out for you... they just want a commission.

Move on to the next real estae broker... they are scrambling for a sale to make a commission.

Move onto a broker that will gey you the best deal on a home and move on to a mortgage broker that will put the deal together for you.

This is not normal real estate what you are going through. It is a power play so your Realtor and mortgage broker do not lose the deal.

Do not compromise yourself. Do not box yourself into a corner.

Relax... the world is your oyster...
0 votes
Carole Cohen, Agent, Cleveland, OH
Sat Oct 13, 2007
Most contracts specify that mortgages are 'contingencies' - this is certainly true in Ohio and I suspect as well in Buffalo. My suggestion is to call the broker/manager of your brokerage handling the deal for you. They will most certainly be able to contact the seller and help you resolve this. If we are missing some pts to the puzzle, you can always contact a real estatate attorney.
If your not getting the mortgage made you stop and think that maybe now is not the best time to buy, that maybe you should wait and save some money clear up some credit issues, whatever? Then there is no need to feel pressure from the brokerage, they have to understand that you have changed your mind -
1 vote
Jerry Thomps…, , 14052
Fri Oct 12, 2007
The question is a little vague, but first off you will need to speak to your broker to get the deposit back, the deposit is being held in escrow and will not be released until you, the brokers involved and the sellers agree to release you from the contract.

The second issue is this why didn't you get the mortgage, in the erie county agreement there is a specific provision for you to apply for a mortgage and then recieve it within a certain time frame, failure to do so lets either party cancel the agreement.

If you applyed and were denied for a variety of valid reasons, low apprasal, poor credit, bad income to debt ratios, you have a valid reason to move on ask for your deposit and wait for releases to get your deposit back, if you did not meet the banks requirements simply because you failed to try or changed your mind then that is a whole different issue and if you broker is legitimatly able to secure a mortgage for you, under the terms of the agreement, then you need legal counsel.

Either way you should get this done quickly you have a seller and broker involved who think you are buying the house or hoping you can close if this is not ever going to happen don't drag it out, it is difficult for them and there is no valid reason to delay the inevitable if you are not able or willing to buy the home, it may be tough but let them move on.
1 vote
Debt Free Da…, , 85260
Sat Nov 10, 2007
I'm not sure if you want the house or not. If you want the house I would talk to another lender, if not then get your money back.
Web Reference:  http://GetPrequalified.com
0 votes
Gail Gladsto…, Agent, 11743, NY
Tue Oct 23, 2007
Do you want the house? You may be able to get a mortgage elsewhere; why wouldn't you try?
0 votes
David Gierli…, Agent, Depew, NY
Mon Oct 22, 2007
It's good to hear you got your deposit back. I would recommend that you use a buyer's agent the next time you make an offer on a home. This would take care of any conficts of interest. A Buyer's agent will look out for your best interest, can help you with your search and give you good comparables for the home your bidding on.
0 votes
Richard M. J…, , Sherman Oaks, CA
Sun Oct 21, 2007
I'm an California Realtor so I think only New York Realtors can answer this question.
0 votes
MPP, , Brooklyn, NY
Sat Oct 20, 2007
The broker is the listing agent not MY broker. in NY there's hardly a thing as MY broker because most firms don't CO-broke.

I didn't qualify because of income ratio. I think the agent was just sharking for the commission and didn't really care what he did to get the sale.

I got my money back after much delay...
0 votes
ian cockburn, Agent, New Orleans, LA
Sun Oct 14, 2007
1) Call the broker and tell him you cannot get the terms you wanted, and you want your money back.
2) If that doen't work, Send a certified letter demanding your money back.
3) Go see the broker, (not the agent) directly and explain the same.

Good luck!
Web Reference:  http://www.iansellsnola.com
0 votes
Deborah Madey, Agent, Brick, NJ
Sat Oct 13, 2007
There are some pieced missing here that could influence the responses/ Why is your attny telling you not to speak to your broker? It seems that you don't want to work w/ this broker.

If you are still within your contingency perod, you have the right to simply request yourr $$ back. If you are not receiving cooperation, escalate to a manager level. If that fails, provide a written notice that you will have no choice but to seek assistance from the regulatory agencies if your deposit is not returned. First, try the manager.
0 votes
Perry Hender…, Agent, Austin, TX
Fri Oct 12, 2007
It sounds like you don't want the house. If that's the case, then your broker should be fighting for you to get the EM back or get you another source of a loan. Why are you hiding from someone who works for you?
0 votes
Ute Ferdig, Agent, Auburn, CA
Fri Oct 12, 2007
Hi MPP. The answer to your question depends on too many facts that we do not know. I have to assume your attorney knows why he/she is telling you not to speak to the broker until you get your deposit back. There might be a time issue. I am not familiar with real estate contracts in N.Y. and don't know what terms are common in real estate contracts and how contingencies are removed. If you canceled the contract, the only question is whether you'll get your deposit money back and there's no need to speak to the broker about a different loan. If the broker can get you another loan, you can always make another offer. It is possible that closing under the current terms of the contract is not possible. Since you are represented by an attorney, I can only recommend that you follow your attorney's advice and direct all questions to your attorney. It would be inappropriate for us to advice you in any way that might be contrary to what you attorney recommended. After all, he is familiar with all the facts of your transaction. Good luck to you.
Web Reference:  http://www.go2kw.com
0 votes
Ken Herrera…, Agent, Las Vegas, NV
Fri Oct 12, 2007
Read through your contract and see if there was any default on the part of the Seller. Your contract may have been set up where you can have your earnest money deposit refunded if you do not qualify for a loan based on specific terms and conditions. What are the terms regarding the deposit and any Seller/ Buyer default? Check the fine print, you may be surprised at what you find.

Good Luck

Ken Herrera
Century 21 Infinity
0 votes
Infinity Rea…, , Saratoga, CA
Fri Oct 12, 2007
Did you Remove loan contingencies or not?
0 votes
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