Can I back out of a refinance before closing?

Author Message
tenoirmystess

Guest







Post Posted: Thu Sep 10, 2009 3:54 pm    Post subject: Can I back out of a refinance before closing?
Like
Dislike

I am going through a divorce and my soon-to-be ex has changed his mind about how much he will sell his share of the house to me for. But the refinance is already in process; he won't sign any papers though. Will I lose out on more than my 'earnest money'?

-Lisa

_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile sunnyca2009





Joined: 04 Aug 2009

Posts: 1731

35.55 Dollars($)
Post Posted: Thu Sep 10, 2009 8:08 pm    Post subject:
Like
Dislike

You will probably loose the money what you have piad till. But check the terms of the agreement
Icon Mini Profile jenkin7





Joined: 04 Jun 2007

Posts: 4537
Location: Hawaii
728.42 Dollars($)
Post Posted: Thu Sep 10, 2009 11:12 pm    Post subject:
Like
Dislike

Hi Lisa,

You can back out of the refinance before closing. But once you close on the loan, you become liable for the loan and you cannot back out of it until you pay it off. In case you back out before closing, you may have to lose the earnest money. But depending on what type of agreement you had with them, you can get a partial or a full refund of the earnest money. If you have paid for the appraisal etc., then you are going to lose that money as well.
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12377
Location: bloomfield, ct
58.69 Dollars($)
Post Posted: Fri Sep 11, 2009 7:49 am    Post subject:
Like
Dislike

i don't get this reference to earnest money. if it is a refinance, it is property that you already own anyway. if you back out of your refinance transaction prior to closing, you will not be compensated for any money you've paid out to the lender or others on their behalf.

on the other hand, if you go ahead and close, you will have a 3-day right of rescission. if you exercise that right, and cancel the loan during that 3 day period, it is required that your lender return all funds to you that you've paid out.

if you're going to cancel, i'd suggest you do it after closing and during your rescission period.

_________________
George M. Akerley
Mortgage Consultant
Word of Excellence- Writing/Editing/Proofreading
Icon Mini Profile smithsara302





Joined: 12 Jun 2009

Posts: 116

-2.38 Dollars($)
Post Posted: Fri Sep 11, 2009 10:44 am    Post subject:
Like
Dislike

Check with the lender before going for further decesion also go through agreement carefully.

Good Luck
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12377
Location: bloomfield, ct
58.69 Dollars($)
Post Posted: Fri Sep 11, 2009 11:43 am    Post subject:
Like
Dislike

dang
_________________
George M. Akerley
Mortgage Consultant
Word of Excellence- Writing/Editing/Proofreading
tenoirmystess

Guest







Post Posted: Fri Sep 11, 2009 5:17 pm    Post subject:
Like
Dislike

I don't have the agreement - the loan officer has been less than helpful - so I'm not even sure how to check! By 'earnest money' I meant the $200 I had to put down with my application, though that may have been an application fee... I did already have the appraisal. Can another bank use the same appraisal, or if I don't close now, will I have to pay for another one?
Thanks for the quick reply,
Lisa
Icon Mini Profile eric1
eric1
Community Expert
Community Expert

best lender badge

Joined: 04 Jan 2009

Posts: 1516

227.77 Dollars($)
Post Posted: Sat Sep 12, 2009 6:45 am    Post subject:
Like
Dislike

Tenoirmystess

You can expect to lose your $200. After all, the broker has been working on your behalf and needs to have SOMETHING for his/her efforts. In addition, if the home was appraised already, then you would owe that cost as well.

_________________
Eric JLow Down Payment, No PMI !
FHA RATE QUOTE
Mortgage Rate Quote
william1942

Guest







Post Posted: Wed Aug 04, 2010 1:34 am    Post subject: apprasial
Like
Dislike

can I decided to not go through with an application for refinance, but they took a deposit for an apprasier to come out. They haven't set an appointment to come out. Can I get that 300.00 back.
Icon Mini Profile sara
sara
Moderator



Joined: 05 Jul 2006

Posts: 3236
Location: New Brunswick, New Jersey
581.38 Dollars($)
Post Posted: Thu Aug 05, 2010 2:46 am    Post subject:
Like
Dislike

Hi william,

You can very well cancel your refinance application now but I don't think you would be able to get back the money that you paid for appraisal. If the appraisal has not taken place, then you may request the lender to give back the monies.

Take care.

_________________
Find me at FB: http://www.facebook.com/people/Sara-Jones/100002976822020
Join me at G+: https://plus.google.com/109953528133398164155/posts?partnerid=gplp0
Ask question
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message Body
All times are GMT - 7 Hours
Page 1 of 1

 
Delete this topic Move this topic Lock this topic Split this topic 

Page loaded in 0.360 seconds.