topic Re: Mortgage contingiency.... in Mortgage Loans

Mortgage contingiency....

Anonymous — Sun, 15 Jan 2012 02:26:45 GMT

My contract had a mortgage contingiency date of this friday (13th) I thought we were allset because monday the bank approved us...my loan officer called me this morning to tell me that nobody could get in touch with the bank for an extension...because he wanted to make sure my deposit would be protected because they didnt give me a conditonal approval yet..? soooooo.....Now im confused is this deal crushed now or???!!!

Re: Mortgage contingiency....

IOBA — Mon, 16 Jan 2012 23:39:05 GMT

It sounds like the mortgage condition clause was to ensure that if you were denied financing, that you would be released from your purchase deal.

Did you originally have the close date for Friday, January 13?

Has the bank written a letter stating the funding was approved?

Re: Mortgage contingiency....

Anonymous — Tue, 17 Jan 2012 00:58:10 GMT

No I have a closing date set for January 27th but the mortgage company approved us but didnt give us a commitment letter..So my LO asked the Mortgage company to provide a denial letter to protect my deposit..I am so confused. Basically he wants the seller to give us an extension for time to do appraisal and whatnot.

Re: Mortgage contingiency....

IOBA — Tue, 17 Jan 2012 01:28:04 GMT

When did you go under contract?

If the closing date was planned for January 27, you should have already had the appraisal. The appraisal is usally ordered by the lender within a few days of having your full file and ap.

Can you give us the timeline?

When did you offer on the house?

When was it accpeted?

When did you apply for a loan?

When did you provide lender with all supporting docs?

Re: Mortgage contingiency....

Anonymous — Tue, 17 Jan 2012 01:43:58 GMT

I put an offer in December 20th , offer got accepted the 27th went under contract the 29th...My loan officer put my file in with the lender on January 6th and they approved us on the 9th..He didnt want to order appraisal until we were approved...Im guessing so we wouldnt have to lose out on the money...Im not really sure what the hold up is here but this process is literally driving me crazy

Re: Mortgage contingiency....

IOBA — Tue, 17 Jan 2012 01:56:14 GMT

I am not quite the expert on this, but as soon as the lender approved the file, they should have ordered the appraisal. IMO, that appraisal should have been done already and the report close to being turned in.

IF your lender gives a denial letter now, you may loose the deal. If i was the seller and you just gave me a lender denial, and it's been 2 weeks since the ratified contract, I would think you were walking away.

The other thing that comes to mind is that the contract said you had xx amount of days to secure the appraisal and the inspection. If you didn't do it within that time period, you forfeited the ernest money unless the sellers give an extension. A lender denial won't change that. Usually, the contracts are written to state that you need to have the appraisal and the insepction completed within 10 days of the ratified contract. Both are usually ordered by the lender only.

Do you know if your lender did that?

Re: Mortgage contingiency....

IOBA — Tue, 17 Jan 2012 01:58:27 GMT

If you really want the house, I think it would be better/easier to ask the lender (who is different from the loan officer?) to provide an approval for the funding, contigent on the appraisal and the inspection.

You could still close by the 27th.

Re: Mortgage contingiency....

Anonymous — Tue, 17 Jan 2012 02:07:04 GMT

Yes Inspection was already completed...and LO said that it takes about 3 days to get appraisal done after the bank approval...we just didnt meet the time criteria for the contingiency of a mortgage..He said it was a way to secure our deposit just in case the seller wasnt going to give us an extension, which would be an extension of only a few days..

Re: Mortgage contingiency....

IOBA — Tue, 17 Jan 2012 02:15:59 GMT

Hhhmmm...two positive ways to move forward...

1. Get the bank approval letter and immediately submit it to the sellers tomorrow, with a note that you still expect to close on or by the 27th.

2. Follow up on the appraisal and find out when that will be in. Your lender can put a "rush" on it.

Are there any issues that need to be renegotiated regarding the inspection?

Re: Mortgage contingiency....

Anonymous — Tue, 17 Jan 2012 02:19:29 GMT

Ok will do The loan officer said we will hear tomorrow the status seeing how everything was closed today...I guess the underwriter has two questions which is why we couldnt get our commitment letter..

Re: Mortgage contingiency....

IOBA — Tue, 17 Jan 2012 02:24:05 GMT

Questions can be answered!

And chances are that the seller would rather give an extension, or overlook a missed deadline, to have the house close. I would proceed with forwarding the letter of commitment from your lender as though it was the most natural thing to do. Include a little note that the appraisal has been ordered and when it's expected to be completed. Add a PS about how excited you are to be closing THIS month! Everything should be fine with the sellers!

And of course, please update us!

Re: Mortgage contingiency....

Anonymous — Tue, 17 Jan 2012 02:29:54 GMT

Thank You so much for your feedback..!!! I am excited, im just nervous this whole process is a rollercoaster ride!!!

Re: Mortgage contingiency....

IOBA — Tue, 17 Jan 2012 12:32:38 GMT

lol - I understand. I have been on the roller coaster for months and I get motion sickness! Let us know what you do/what happens today!

Re: Mortgage contingiency....

webhopper — Tue, 17 Jan 2012 16:03:27 GMT

Maybe try to get the sellers to extend the effective date of the contract..... I went through a similar scenario where I waited to order the appraisal and inspections, because my original lender denied me, and I had to work with a new lender.