Mary, Other/Just Looking in Pittsburgh, PA

What fees am I responsible for if I can't close due to loss of loan?

Asked by Mary, Pittsburgh, PA Thu Nov 20, 2008

I had a scheduled closing for next week and the bank is now telling me that they cannot find a company for the PMI so I either have to come up with 20% down (impossible) or shop for another loan. If the sale doesn't happen what fees am I then responsible for?

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Debra B Albe…, Agent, Port St Lucie, FL
Thu Nov 20, 2008
Review the finance section of your contract. Sale and purchase contracts have dates for obtaining an approval of the loan. Seek the advise of your Realtor or the closing title company or lawyer. You may or may not be able to get your escrow deposit back. It all depends on your contract.
Debbie Beichel Albert
Coldwell Banker Residential
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Jackie Pulca…, , New York
Thu Nov 20, 2008
Hi Mary

Is there a reason that you cannot get an FHA loan? FHA allows for 97% financing. Please contact me and I will be happy to try and help you. I am a direct lender, specializing in FHA financing since 1992.

Have a good day.

Jackie Pulcano
United Mortgage Corp
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Scott Godzyk, Agent, Manchester, NH
Thu Nov 20, 2008
first of all you should have a contingincy in your purchase and sales agreement that made the deal contingent upon you receiving mortgage approval by a certain date, hopefully theat date hasnt passed. i havent heard of problems finding a PMI company before. If you are with a mortgage broker who is trying to find a lender to place it with, you may be having trouble. You should have your buyer agent assist you with getting an extension or a release. If you do not have a buyer broker and you are past your mortgage contingincy you need to appeal for the seller to release you and provide a copy of your mortgage denial. Best case they keep you deposit, worst case they look for damages.
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David Athert…, Agent, Deer Park, WA
Thu Nov 20, 2008
Hi Mary, probably your credit check 20-60 dollars and your appraisal if it has been done 350-450 dollars. Your earnest money might be at risk depending on your contract. Normally it would not be in my experience. Might depend on if you were in a long process and kept the home off the market for ever. Talk w/ your agent and your lender to get the specifics for where you are. A lot depends on where in the process you are. First week, maybe only credit check. 8 th week, maybe even your earnest money. Dave atherton
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David Chambe…, , Saint Petersburg, FL
Thu Nov 20, 2008
Hopefully you wrote a financing contingancy into the contract. Look at your contract, talk to your agent and call a lawyer if needed.
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