Importance of a Mortgage Contingency

Recently, I had a closing where the I represented the buyer for a property in West Orange, New Jersey.  When I received the contract, I created my attorney review letter and made sure I put in a clause that assures that my client can get out of the contract if they cannot get a mortgage and can get back any deposit money given to the seller.

In this transaction, my client’s mortgage broker discovered a tax issue that decreased his credit score and impacted his ability to get a mortgage.  I contacted the seller’s attorney and had to pull out of the deal.

My client was not on the hook for any further damages and the seller had to reluctantly return the deposit money.  Make sure you hire an attorney that protects you and your interests to protect you from the unexpected.

If you or someone you know wants to purchase or sell their home or townhouse please feel free to reach out to the Law Offices of Chirag D. Mehta, LLC at (201) 668-0667 or via email at Chirag@mycdmlaw.com.