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Deal fell through with seller; what happens to my mortgage?

Posted on: 20th Mar, 2008 11:36 am
Hello all!

Question....

Had a fallout with the seller on a house deal and now I won't be closing. What happens now between my lender and myself? Do they slap me with fees for wasting their time? Can I carry over my mortgage to another similarly price house without re-applying for another mortgage?

Thanks!
Hi Tarestro,

Welcome to the forum.

I think you will have to pay the fees. But you should talk with the lender ASAP and see if he can allow you to carry over your mortgage to another similarly price house.

Best of luck,
Larry
Posted on: 20th Mar, 2008 11:41 am
Hi Taresto,

Most good lenders will not charge you for anything just b/c a closing falls apart. As long as your rate or approval are not expired you should be fine.

And to answer your question, you can absolutely substitute another property, all you will need is a new contract, a new appraisal, and have it put back thru underwriting. Since you were already approved for the loan amount, it is only the property that has to be reviewed.
Posted on: 20th Mar, 2008 01:40 pm
you didn't waste anyone's time, tarestro. and kpatrick is correct in saying that any good lender would not charge you fees for having worked with them. there is one fee you may have to pay - the appraisal of the property - but that ought to be it.

she is also correct in saying that your approval should simply "roll over" to another, new, property; with the only need being the new address and the proper documentation needed to make the new deal work.

this is not an unusual occurrence - it happens all the time and in all markets.
Posted on: 21st Mar, 2008 08:10 am
Oops, you're right George..I forgot about the appraisal. Good catch.
Posted on: 21st Mar, 2008 08:30 am
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