Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

backing out before closing

can i back out of a deal before closing without having to pay any fees ?

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

You may back out but this will depend more on the lender. You need to talk to him and show him a valid reason. Even then you may have to pay a certain amount for cancelling the deal.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Usually borrowers are given 3 business days after signing the loan documents within which they can cancel the mortgage. This is known as the Right of Recission. But this right is not allowed for home buyers. It is meant for those willing to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] or take a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] or line of credit.

Thanks,

Caron.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Jessica's picture
Jessica | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Under the Truth-In-Lending Act, a borrower has the right (Right of Rescission) to withdraw from the deal within 3 days after closing. Therefore, you may cancel the deal before closing.

However, the right of rescission is applicable for those who refinance the home with a new lender or in case of a cash-out refinance. The right does not apply to those who are buying their principal residence, those who consolidate or refinance existing home loan with the same lender when no extra cash is borrowed from elsewhere. A borrower also does not have the right to rescind if a state agency is the creditor of his loan.

The right of rescission applies to loans against condominium, mobile home, house boat etc as long as it is the principal residence of the borrower. The right is generally provided to borrowers taking installment loans or personal loans keeping the home as collateral.

Regards,

Jessica.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

you close on a house, a duplex to rent out, than break up with boyfriend and afraid can not handle it, makes $7.50 an hour. How would a person get a $90,000 loan on that amount and 40 hour week or less, can you back out of the house after the closing

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

once you've bought the home, you are on the hook for that mortgage, and the home is yours. if you cannot find a way to make the payments, you can certainly seek to sell the home. that's the first bet bet for your situation; contact your realtor and discuss it. but also contact your lender and discuss it with them. you'd be better served not to find yourself in trouble making payments without having tried to deal with eliminating the cause - affordability.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If I back out of a loan before closing, will I owe any fees such as for an appraisal that may already have taken place?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

riseabove's picture
riseabove | Joined: November 9, 2009 12:58 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you have already agreed all the terms and the deal is done, you can't just back out. If you try you'll face legal consequences I expect.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

corn, you would be obligated to pay for the appraisal, but a smart lender would have already collected that fee from you anyway.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My wife and I are in the process of refinancing our home. We have signed many documents, but have not closed. It's been three weeks since we've started this process, and now we are not comfortable with the new lender. Does the Right to Rescind apply to us, or does this take effect after we've closed?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jon,

If you haven't signed the closing docs with the lender, then you will be able to cancel the deal immediately. The right to rescind will, however, come into affect once you have closed the loan.

Thanks,

Jerry

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what are the possibilities of getting out of the contract?we already send them letter of termination of contract and told them about our reasons and inform them that the earnest money put forward is surrendered to them<seller> without dispute because we already did also the home inspection and they already repair the other damages of the house.can we still backup in buying that house ???the seller didn’t sign or agree to terminate the purchase of contract and they are still going to go on the day of closing.is there any possibility that they will sue us for not buying the house??

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi friggy,

The seller may sue you for not buying the house. If you have cancelled the contract within the 3 day rescinding period, then I don't think the seller will be able to take any legal actions against you.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

No closing yet but all docs in except flood insurance. Bank is requesting coverage for a zone not indicated by county conservation /FEMA maps.
Want to withdraw loan request and use other available funds.
What fees will we incur and what docs can we request from the lender?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Sus,

You should immediately contact the lender and withdraw your request for a mortgage. You should ask the lender to return all the documents that you had submitted him.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can I back out of a loan before signing any paperwork? Will I have any charges? I'm assuming appraisal fee, as long as I teceive a copy.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi CT!

Welcome to the forums!

A query similar to yours has been answered in the given page: http://www.mortgagefit.com/Mortgage-Basics/Back-out-of-loan-before-signi... . Take a look at it. I hope it will help you.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

franko's picture
franko | Joined: September 22, 2010 03:17 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

On a purchase, real estate agents and loan officers only get paid on commissions once the deal is complete. Escrow, the attorney (or settlement company), appraiser, home inspection all will still be due to their monies.
You backed out due to non-repairs which you requested. It is a valid decision. Investors backed out of building a NFL stadium in downtown L.A. countless times. why not you? plus you have a good reason. You don't feel good about it now. I would've cancelled a while ago. However, I would not think the seller should keep your deposit unless you changed your mind too late.
For a [url=http://www.mortgagefit.com/refinance.html]refinance[/url], just scratch out the realtor being paid.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 00:00 | Post subject:

Page loaded in 0.099 seconds.