What is a Mortgage Contingency Clause?


If you enter into a contract to purchase real property, the contract may be contingent upon your ability to obtain financing. This contingency is based on specific and mutually negotiated terms (i.e., the amount of the mortgage, the interest rate of the mortgage, the term of the mortgage and the amount of time necessary to obtain the mortgage). If you cannot obtain financing during this period, the contract will be terminated and the buyer will generally receive back their down payment.


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