QUESTION
Do I have to pay any fees if i pull out of refinancing deal?
Asked on Jun 11th, 2015 on Real Estate - California
More details to this question:
I wanted to refi my primary residence with cash out, which I was going to use to refi my former residence which is an investment property now. If the borrower declined to refi the investment property, but wants me to pay a second appraisal on the primary and fund that,can I just walk away without paying any fees or fines.
1 ANSWER
Read whatever agreements you have signed. That is what controls.
If the first lender refused to make the loan, and you have a signed written agreement with a licensed real estate agent or loan broker to find you a loan, and the agreement provides that you will pay for all required fees, and you have no right to cancel and not accept a loan the broker finds that meets your requirements for the loan, then you may be liable for the second appraisal and you may be liable for the broker's commission if you cancel, even if you don't get a loan.
It is common for parties to such loan brokerage agreements to not include enough terms in the agreement for it to be enforceable. If you want to get out of the agreement, you should have a real estate attorney review the agreement to look for loopholes.
Dana Sack
510-286-2200
Answered on Jun 14th, 2015 at 10:55 AM