Contingency for appraisal price?

Started by kf01

over 12 years ago

Posts: 3

Member since: Jul 2010

Discussion about

Our attorney was looking over our contract for the co-op we're in the process of purchasing and wanted to add to the rider a contingency protecting us in case the apt appraises by the mortgage company for less than the sale price. Our seller's attorney stated that such a contingency would not be included. We think we're getting a good price for the co-op apt but we are not able to take on the risk of being responsible for more than the 25% we are putting down already. Does anyone know if an omission of such a contingency is common in NYC? Or any experience on why the seller's attorney would be pushing so hard to not include one? Thanks!

Response by West34

over 12 years ago

Posts: 1040

Member since: Mar 2009

http://streeteasy.com/nyc/talk/discussion/36256-no-mortgage-contingency

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Response by FreebirdNYC

over 12 years ago

Posts: 337

Member since: Jun 2007

If you get a standard mortgage contingency, the contract will be subject to attaining financing in the amount of at least [$x] at the prevailing terms and conditions of the bank for a 30 year mortgage. If you can't get a commitment for that much of a loan (due to low appraisal or otherwise), you can walk. So if that's what you're worried about, you need a contingent deal.

If there is no mortgage contingency (which is what many sellers are asking for), then you have to close regardless of loan availabilityor lose your deposit.

Contingency for appraisal price?

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