can i back out of a contract if a non purchaser spouse wont sign deed of trust or be listed on it even if financing contingency is up?

Asked by maggie, New York, NY Tue May 28, 2013

I am buying a house and had to add my mom to cosign for the additional income. My financing addendum ended 17 days after the contract started and were already towards the end and supposed to close next week. My mom is divorced and remarried. Her husband is nowhere on application or anything as she doesnt not want him to be included into this. The lender is now requiring that we send copies of ids of her spouse even though hes not loan and says he will have to sign deed of trust at closing as rights to house as a non purchaser. My mother does not want to include him in this whatsoever and he also refuses to sign on that. So what would happen. I would lose earnest money but fcould I still back out?

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Susie Kay, Agent, Dallas, TX
Thu May 30, 2013

Your first stop of this question should be your realtor. From what you described above you'll lose the earnest money but may still be able to get out of the contract since (presumably) your lender won't give you a loan unless your mom's husband signs the deed.

Talk to your agent!

Susie Kay, Realtor®
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240

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Don Groff, Agent, Austin, TX
Wed May 29, 2013
Speak with your agent about your options. Based on what you have stated you can possibly get out fo the contract for the reason stated but you would lose your earnest money unless there is another way or option we are not aware of that could get you out of the contract. Each contract has several areas that can potentially give you an out if the other party is not performing to the contract.

Hope this helps.

Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 |
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Dixon Wong, Agent, Dallas, TX
Wed May 29, 2013
Hi Maggie,

Since your financing addendum ended on the 17 days after the contract executed. Your contract is still subject contingency upon lender approval. So for financing reasons, if it fall thru you will loss your EM.

Get with your realtor tho. You really need to learn the contract in and out to understand the ins and outs so without the whole contract, we don't know for sure.

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Dallas Texas, Agent, Dallas, TN
Tue May 28, 2013
Assuming the property is in State of Texas - per the statues it does require both of their signatures IF there is a lender involved. IF you were paying cash for property IT could potentially be avoided.

WHO is your mortgage broker and Realtor? They should have reviewed all these particulars with you from the beginning.

Regards to earnest money - everything is governed by the executed sales agreement.

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111 100's of Dallas homes listed for sale or lease

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Dennis Ander…, Agent, Garland, TX
Tue May 28, 2013
Your Realtor should be able to offer guidance. In Texas most contracts are contingent on the 3rd Party Financing being finalized.
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my third party financing didnt get extended because my lender said all was done so the time frame ended(17 days to obtain financing) and wasnt extended. So then I lose my earnest deposit but will I be able to back out still and would it be due to financing as reason?
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