Broker did not obtain mortgage in time for closing now costs are escalating can I extend long enough to get a mortgage elsewhere or drop the contract?

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Broker did not obtain mortgage in time for closing now costs are escalating can I extend long enough to get a mortgage elsewhere or drop the contract?

I signed an agreement in April to purchase a home in Bethlehem, PA (I’m a Foreign Service officer in Colombia – US State Dept) I’ve been working with a broker recommended by my agent. Items were not sent or processed in a timely manner, documents (bank info, W2s, etc) were lost in his office for a week, and all the time the rates were going up. Now they are blaming new regulations. The closing was to have been on 5/29 and now I hear it could be as late as 6/19. I am still willing to purchase but wish to obtain a mortgage elsewhere or drop the whole thing and have my deposit refunded.

Asked on May 27, 2009 under Real Estate Law

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Well, try it but understand the broker may attempt to enforce this contract.  What you should do is the following:

 

1. Call and file a complaint with your State's Banking Dept (sometimes called the Dept of Financial Institutions).

2. Call a lawyer. Try www.attorneypages.com and check his or her record at your State's State Bar.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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