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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 116780
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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We were supposed to go to settlement 10/28/2016, however the

Customer Question

we were supposed to go to settlement 10/28/2016, however the mortgage company said they found 1 discrepancy on the credit report. Now the builder said we would have to forfeit the entire $40,000 if we cannot close promptly on that day even after the mortgage company said worse case scenario we could possibly close in 45 days, could we request an extension to avoid losing our hard earned money?
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: New Castle, Delaware
JA: Has any paperwork been filed?
Customer: What do you mean? We have a contract that's all.
JA: Anything else you want the lawyer to know before I connect you?
Customer: We don't want to be forced out of this deal, we want this house. The one late payment was for maybe $25 or $50 dollars, my wife was ill and thought she paid it, this is the only thing holding things up.
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Does your purchase contract contain a mortgage contingency clause in it? Have you negotiated with the seller regarding an extension of closing? Also, have you notified the lender of the issue with the seller and asked for their assistance to extend the closing time for something beyond your control?
Customer: replied 9 months ago.
No we have not, should we have a lawyer representing us to do this or is this something we can do on our own?
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your reply.
Ultimately, if you are in breach of contract without a mortgage contingency clause in the contract, you will need to move swiftly and having a local attorney can help with that.
If the seller will not agree to an extension and you cannot get the mortgage company to intervene with the seller and get an extension or cannot work out with the mortgage company to clear this credit issue before closing, you will need an attorney because it seems the builder is going to be a hardnose and seek to keep your deposit, which legally without a mortgage contingency clause they can do.
So make some calls tomorrow and if you cannot make any headway on getting agreements, then you need to get an attorney immediately to seek to intercede on your behalf to seek to stop the builder from claiming default and breach of contract.

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