May 7, 2015

Some first time home buyers or sellers in New York may not understand the mechanics of the mortgage contingency.  Simply put, the standard mortgage contingency gives the buyer a grace period to cancel the Contract of Sale without forfeiting the down payment if the buyer is unable to obtain a mortgage commitment.  The amount to be financed and the duration of the contingency period may be negotiable.  All other things being equal, a seller may decide to accept an “all cash” offer over an offer subject to a mortgage contingency to reduce the risk that the contract is canceled.

If you have any questions about buying or selling a property in New York, please do not hesitate to contact an experienced attorney at (914) 338-8050.  For more information about our firm please visit www.betenskylaw.com.