JOHN C. REIS
ATTORNEY AT LAW
Copyright (C) 1997 John C. Reis
NOTICE TO BUYERS
The information contained in this document is not intended as legal advice
to any particular person. The reading, downloading, or duplication of this
document does not create an attorney client relationship. All buyers are
advised to obtain legal representation for the purchase of real estate.
Always follow the directions of your attorney in any transaction.
Find out your first loan approval date from your contract. If your loan
is not approved or is approved with conditions you cannot meet (or is
rejected) by the loan approval date specified in the contract you must give
the seller notice in writing by certified mail, return receipt requested, or
in person, (in some cases by fax) that your loan is not approved. If the
loan approval date falls on Sunday or a holiday you must send your notice
on the preceding business day.
If the seller gives you an extension of the loan approval date you must
send or deliver a new notice each time the extension expires. You must
mail the form to the seller on the notice date or loan approval date
you have agreed to. If you are unable to use certified mail on the
required date, bring two copies of your notice to the seller in person
and have the seller sign for the delivery with the date. If you do not
keep track of your loan approval and serve loan extension requests as
indicated above you can lose your earnest money.
Just as important, you must understand that if you default on performance
you can lose more than your earnest money. With most contracts, the seller
can sue you for the difference between your contract price and the "
fair market value" of the property at the time of your default.
This can be much more than your earnest money. Get a supply of loan
approval extension requests (MLS form Rider 411 from the selling realtor.
Get certified letter receipt forms (post office form PS 3800), and green
postcards (form PS 3811) at any post office.
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