Since my closing costs went up at the last minute (exactly what everyone told me would happen, but I didn't think it would be so much!!!) I have been left with struggling to get the remaining amount needed for closing. And because its such a higher amount than what I was originally told I don't think I can put this together. I have advised my agent and lender that I will need a at least a few more weeks to put this together since I cannot borrow from anyone and it has to be a gift. My lender has told me he has a loan committment letter already and now I am wondering what happens if I can't come up with the funds to close? Will I still be held responsible for a house that I can't buy? I am a divorced woman trying to do this on my own and its not easy. I have not signed anything for this property regarding a loan so I am wondering if they can still hold me to this?
I am tryin to rent from the sellers in the mean time until I can come up with the money but the sellers do not want to rent.
ANy suggestions?

Walk away and you will lose any money that you put down as an earnest money deposit on the property. Who's fault was it the the closing went up? I assume the loan officers...

You won't be responsible for the house payment if you don't own the house. At this point you don't own the house.

FYI, tell your retard LO, if it is his fault, that you are going to walk and he won't make any money on this. So instead of trying to make a ton on one deal; help a divorced woman buy a home, make a little money, and be able to sleep with yourself.

I have been having many issues with both the agent and lender from the start, as this is my second attempt to buy a house, and I do feel I need to walk away from this all. I have been told by my agent that the earnest money is with the closing company. Do you think I stand a chance of getting it back? And will the agent and lender try to get me for any fee's for their services so far? As of right now I have no current relationship contract between my agent and myself as it expired on the 21st of July.

Thanks so much!

You will lose your earnest money, but you won't be liable for any fees due to the agent or the lender. Before you walk away, tell both the agent and the LO what I said above. Buyers are as precious as gold right now, I don't think they will want you to walk. Give them a chance to make it right.

Will do and thanks again!
Will let you know of the outcome!

What does your sales contract say? Here in CA our standard CAR form makes the sale contingent on the buyer obtaining financing. If the financing falls thru no sale. Unless the buyer has actively removed that contingency in writng.

I'd suggest looking to the contract for everyone's rights/rememdies in the event financing falls thru. When I write an offer for a buyer I make the financing contingency pretty tight, ie *buyer to obtain a conventional fixed rate mortgage at a rate not to exceed 6%*

Sellers normally don't squawk about it & it gives the buyer a lot of breathing room in case he can't get the loan put together since nobody is likely to get 6% right now.

Our CAR contract also requires that buyers present proof of funds to close w/in 7 days of acceptance tho locally that is only recently being pushed by seller's agents.

Everyone's rights are in the contract. If there is a financing contingency you just may be entitled to your EM back.

Good points LD! I remember reading those in my RE classes that I'm in the middle of. Seems to me the loan contingency could be tightened up or the seller would claim that the buyer got the loan for the stated amount and that the loan costs aren't part of the contingency. What are your thoughts on this? I'm hoping to buy a house next year so I want to be able to tighten up my contract, especially if we are still in a buyer's market.

Excellent tip that is often not used!!!

Ok the lender has verified my VOD and all so it is ready to go with the contingency that I come up the rest of the closing costs within 30 days. That could be doable.
I think this might work after! And my sales contract is contigent upon financing.
Anyone know where I can gat a quick loan for 2,000?
I tried Prosper but no luck...6% cap in Pa and with my credit score no-one was willing to lend.

Not sure I understood the question.

On our CAR form the loan contingency is right on the 1st page w/blanks to fill in for terms if you so desire. I think it's wise to not leave that blank b/c if a lender ends up offering you a really awful loan, you could be stuck since you were not specific about the terms you were going to get.

I wrote an offer not long ago w/a contingency clause that the buyer was to obtain conventional financing at 4.33%. Primarily b/c the sellers were completely crazy & we weren't sure they could be sane long enough to get the thing thru escrow. Gave buyer a bit of a parachute if they got really unbearable.

They accepted the offer w/that contingency so it was on them. Buyer well protected against nutso sellers who put a lot of energy into making everything much harder than it needed to be.

Cat, how much is your lender charging in origination? And in discount points? Lenders like to hide origination there too.