Reason of loan
*WHAT* does the loan contingency clause in the contract say?A 'competently drafted' contingency specifies the maximum loan term, the minimum loan-to-value percentage, the _type_ of loan (fixed, adjustable, 'balloon', etc.), the maximum percentage rate, and (usually) the maximum monthly (P&I) payment.
If your 'loan contingency' -has- those specifications in it, then either a) the 'no doc' loan is within the criteria, or, b) it is -not-.
If it *is*, the purchase contract is still binding on you.
If it is _not_, you can exercise your right to vacate the contract -- well, unless the seller is prepared to offer loan terms 'at or better than' the the contingency clause limits.
If you're still confused, take your purchase contract to a real lawyer, along with the details of the 'no doc' loan, and have said lawyer explain things to you. You'll probably have to pay the lawyer some money. It is *far*cheaper* than 'the alternative'.
posted by allinsurance @ 12:24 AM
0 Comments
