From 2004-2007, non-contingent contracts were the norm, as it was a pure sellers market but with the change and flux in today’s current credit markets, buyers will utilize contingent contracts to protect their earnest money deposit, if by chance they can’t obtain a mortgage within the terms of the agreement.
Key things to remember regarding contingent contracts.
1) The clause usually states that the buyer has 30 days from the contract signing, to obtain a mortgage commitment. This term can be negotiated, if needed.
2) Utilize financial forms to get a proper picture of each potential buyer, so valuable time isn’t wasted with a non-qualified buyer.
3) If the buyer obtains a commitment letter within the 30 days, the contingency has been met and the buyer is liable for the contract.
4) The sellers’ attorney can verify and receive a copy of the commitment letter from the buyers’ attorney to further assure a smooth process.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment