Ask Experts Questions for FREE Help !
Ask
    zzsherry's Avatar
    zzsherry Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 4, 2006, 01:15 PM
    Cancelling a mortgage contract
    What happens if I cancel a mortgage contract if I am unable to make the payments and cancel before I have signed the bank loan papers? The sellers have my promise money and I am going to pay for the appraisel. What legal rights do the sellers have to make me take out a loan? It has bee about one week since they accepted by offer.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Dec 4, 2006, 01:38 PM
    I think you mean a SALES contract, in which you agree to purchase the home. You pay a deposit towards the purchase price (the promise money?). That deposit is forfeit if you back out of the sale. Normally, you have a 3 day grace period, but that seems to have past.

    You need to read the terms of the sales contract, but they can't force you to go through the process of obtaining a mortgage and closing.

    A mortgage contract is the loan contract between you and the lender.
    RonSunTrust's Avatar
    RonSunTrust Posts: 3, Reputation: 2
    New Member
    		  
    #3

    Dec 18, 2006, 11:38 PM
    Quote Originally Posted by zzsherry
    What happens if I cancel a mortgage contract if I am unable to make the payments and cancel before I have signed the bank loan papers? The sellers have my promise money and I am going to pay for the appraisel. What legal rights do the sellers have to make me go ahead and take out a loan? It has bee about one week since they accepted by offer.
    I agree... as a lender I have never had a borrower legally obligated to borrow from me. While it might dissapoint the loan officer, you are under no obligation to do anyhing but meet the terms of the sales contract... namely provide the agreed-upon consideration to the seller by the agreed-upon date. The source of the consideration can not be forced upon you in any jurisdiction I am aware of.

    Ron Schwartz - SunTrust Mortgage - Greater Washington DC Region
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Voiding a mortgage contract [ 3 Answers ]

How do I write a letter to void a mortgage contract based on finances?

Cancelling a Contract For Deed [ 2 Answers ]

My husband and I bought a home "contract for deed" one year ago. At the time, it was the perfect solution to our needs. Things have changed and we can't afford the payments any longer. We have not missed any payments as of yet. We are wondering if there are options for us to cancel a contract...

Mortgage [ 1 Answers ]

I want to add my friend to my mortgage loan. How do I do this?

Contract [ 2 Answers ]

Me and my spouse are separated and he has the vehicle but it is in my name we are still making payments. Is it a way to have the contract put in his name?

View more questions Search