Home seller is frustrated after buyers' bank turns down mortgage
Contingency clause said the bank could withdraw approval at any time up to 24 hours before the scheduled settlement date.
D
EAR HARRY: About six months ago, my husband and I moved to a retirement community. We did this hoping to sell our home quickly. It didn't happen. Our son urged us to take any reasonable offer, which we did. However, a couple of days before settlement, our broker called to tell us that the buyers' bank had turned down their mortgage. It is true that their commitment had a contingency clause that said the bank could withdraw approval at any time up to 24 hours before the scheduled settlement date. The buyers went scrambling around for the money, but got nowhere.
Our broker wants to let the buyers settle with us holding a 90-day mortgage. We turned him down because we don't want all the mess that a foreclosure would entail in addition to the loss of some or all of the money we left in that mortgage. Our children want us to take the deal and be done with it. Should we?
WHAT HARRY SAYS: You are not in the banking business. Don't do it! I think you are justified in walking away, in view of all the risks you would be taking. If this bank turned him down, why would any other bank give its approval? There are some deals where lending the buyer some money would be OK. This is not one of them.
Email Harry Gross at harrygrossDN@gmail.com, or
write to him at Daily News, 801 Market St., Philadelphia, PA 19107.
Harry urges all his readers to give blood. Contact the American Red Cross at 1-800-Red Cross.