What is a Mortgage Contingency?

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.

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