Opt out clause???

Is it standard for a buyer of a condo to ask for a clause in the contract that states that if on the day of  the closing their bank suddenly chooses not to fund their mortgage loan they get to walk away from the deal and keep their deposit?

curious2

in Mortgage 13 years and 2 months ago

5

Please log in, in order to post replies!

5 replies

Newest Oldest

deancollins | 13 years and 2 months ago

string(1) "1"
object(WP_User)#5140 (8) {
  ["data"]=>
  object(stdClass)#4872 (12) {
    ["ID"]=>
    string(5) "25779"
    ["user_login"]=>
    string(11) "deancollins"
    ["user_pass"]=>
    string(0) ""
    ["user_nicename"]=>
    string(11) "deancollins"
    ["user_email"]=>
    string(19) "dean@collins.net.pr"
    ["user_url"]=>
    string(26) "/forums/users/deancollins/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:07:36"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(11) "deancollins"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(25779)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

The condo has the right to put it into the cotract….you have the right to refuse and insist on a mortgage contingency.

In other words DO NOT SIGN THIS CONTRACT.

negotiate for its removal and tell them to go suck eggs if they refuse, its just not worth the risk.

slopegirl | 13 years and 2 months ago

string(1) "1"
object(WP_User)#5139 (8) {
  ["data"]=>
  object(stdClass)#4885 (12) {
    ["ID"]=>
    string(5) "34682"
    ["user_login"]=>
    string(9) "slopegirl"
    ["user_pass"]=>
    string(34) "$P$BmPjvLLXxuJIHCzkqN9h9/FLl7akcD."
    ["user_nicename"]=>
    string(9) "slopegirl"
    ["user_email"]=>
    string(21) "sarah_11215@yahoo.com"
    ["user_url"]=>
    string(24) "/forums/users/slopegirl/"
    ["user_registered"]=>
    string(19) "2017-08-10 13:49:17"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(9) "slopegirl"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(34682)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

One of the things you will do when you decide with your realtor which offer to take is the qualifications of the buyer. This is what we did in 2009 when we sold our apartment. You just need to evaluate the financials of the buyer not just the price they’re willing to pay. This is why people paying all cash can negotiate better prices. You are getting a higher sales price in exchange for the risk that the mortgage may fall through (and for the time it takes to get financing as well).

Snezan | 13 years and 2 months ago

string(1) "1"
object(WP_User)#4866 (8) {
  ["data"]=>
  object(stdClass)#5141 (12) {
    ["ID"]=>
    string(5) "26559"
    ["user_login"]=>
    string(6) "Snezan"
    ["user_pass"]=>
    string(34) "$P$BzJeNprGs30RjYD4cvbkJkRL0Prka21"
    ["user_nicename"]=>
    string(6) "snezan"
    ["user_email"]=>
    string(17) "snezanc@gmail.com"
    ["user_url"]=>
    string(48) "http://bstoner.wpengine.com/forums/users/snezan/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:07:43"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(6) "Snezan"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(26559)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

yes it does leave the seller vulnerable, but not as vulnerable as the buyer, considering they just put down 10 percent of their deposit. In a buyer’s market, most will stand firm on this contingency.

One method of overcoming this limitation is to set an aggressive closing date.

For the buyer, it’s helpful to have a mortgage broker. I’ve had situations where the broker has come up with a 2nd and 3rd lender to keep a deal going.

curious2 | 13 years and 2 months ago

string(1) "1"
object(WP_User)#5140 (8) {
  ["data"]=>
  object(stdClass)#5142 (12) {
    ["ID"]=>
    string(6) "179199"
    ["user_login"]=>
    string(8) "curious2"
    ["user_pass"]=>
    string(34) "$P$B4kfng59lt/okO9r1C8F0bsJDCcy../"
    ["user_nicename"]=>
    string(8) "curious2"
    ["user_email"]=>
    string(24) "cherylsmallman@gmail.com"
    ["user_url"]=>
    string(23) "/forums/users/curious2/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:39:12"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(8) "curious2"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(179199)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Doesn’t this leave the seller vulnerable?

slopemope | 13 years and 2 months ago

string(1) "1"
object(WP_User)#5139 (8) {
  ["data"]=>
  object(stdClass)#5143 (12) {
    ["ID"]=>
    string(6) "161310"
    ["user_login"]=>
    string(9) "slopemope"
    ["user_pass"]=>
    string(0) ""
    ["user_nicename"]=>
    string(9) "slopemope"
    ["user_email"]=>
    string(19) "slopemope@yahoo.com"
    ["user_url"]=>
    string(24) "/forums/users/slopemope/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:24:00"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(9) "slopemope"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(161310)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

That would be called a mortgage contingency.  These days, with the banks the way they are, if you don’t have 100% cash, it would not be very wise to enter into contract without one.