We applied for a loan with only 5% down , bank sent commitment letter with 8% down & with a different loan product where we have to finance the whole PMI of $10491 instead of paying monthly .

According to sellers we have met the commitment contingency ,

Basically the bank trapped us by sending the commitment but not with the original loan application terms where we have mentioned , we can only put 5% down .

The commitment letter does not really specify all details .

My question is , can we cancel this contract since we don't want to put more than 5% down with out breaching the contract & without losing our deposit money of $18000 ( 5% of purchase price which is in attorney trust fund )

Today is the 10th & last day to cancel according to commitment contingency in contract .

Without seeing the wording of the contract we can't tell for sure. Don't you have an attorney going over the contracts?

Did the Contract say that you would be putting down only 5% and financing the balance? If so, and if the commitment states that you must put down 8%, then you have not obtained a mortgage commitment in accordance with the Contract. In my opinion you can cancel the Contract and get a refund of the deposit due to the failure to obtain a mortgage commitment in accordance with the Contract terms. You may end up having to fight this in court, so good luck!

WHOSE attorney is holding 18,000? Hopefully yours.
Your lawyer works in your interest. A simple phone calls handles it.
If you don't have one, spend the next few hours finding one!

Wrong down payment on commitment - can it grounds for cancellation

losingdeposit https://www.askmehelpdesk.com/custom...ser-online.png (2 Posts) Asked Today, 07:49 PM — 4 Answers / 28 Views Report

We applied for a loan with only 5% down , bank sent commitment letter with 8% down & with a different loan product where we have to finance the whole PMI of $10491 instead of paying monthly .

According to sellers we have met the commitment contingency ,

Basically the bank trapped us by sending the commitment but not with the original loan application terms where we have mentioned , we can only put 5% down .

The commitment letter does not really specify all details .

My question is , can we cancel this contract since we don't want to put more than 5% down with out breaching the contract & without losing our deposit money of $18000 ( 5% of purchase price which is in attorney trust fund )

Today is the 10th & last day to cancel according to commitment contingency in contract .

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My attorney is holding the deposit & says I don't have grounds to cancel as long as I have a commitment even if it does not meet the 5% down payment terms according to contract , since it does not mean I am not qualified for the mortgage , today is last day to cancel according to 10 days provision in the contract , also to add , seller has sent a time of essence on 7th ( we are supposed to close on 7th & asked for an extension since commitment came on 3rd) , which means we have close on or before 17th of this month or we are in breach of contract.. my real estate agent is no help since she is a dual agent.. bank has put us in a fix . We are worried we will loose our hard earned deposit money if we don't close in 10 days ,

Tell your attorney that you did not qualify for a 95% mortgage commitment and he should start working on your behalf instead of being afraid.

Again, it depends on the actual wording of the contract. I would assume your attorney knows the contract and what it says. You can ask the attorney to explain specifically why you have to honor it.