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    losingdeposit's Avatar
    losingdeposit Posts: 2, Reputation: 1
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    #1

    Feb 9, 2014, 12:49 PM
    Wrong down payment on commitment - can it grounds for cancellation
    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 .
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Feb 9, 2014, 01:07 PM
    Without seeing the wording of the contract we can't tell for sure. Don't you have an attorney going over the contracts?
    LisaB4657's Avatar
    LisaB4657 Posts: 3,662, Reputation: 534
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    #3

    Feb 9, 2014, 01:15 PM
    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!
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #4

    Feb 9, 2014, 01:30 PM
    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!
    losingdeposit's Avatar
    losingdeposit Posts: 2, Reputation: 1
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    #5

    Feb 9, 2014, 02:41 PM
    Wrong down payment on commitment - can it grounds for cancellation

    losingdeposit (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 .

    --------------


    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 ,
    LisaB4657's Avatar
    LisaB4657 Posts: 3,662, Reputation: 534
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    #6

    Feb 9, 2014, 03:34 PM
    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.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #7

    Feb 9, 2014, 04:14 PM
    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.
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