I am a seller and have a sale contract on my property. The inspections and appraisal are all done.

Yesterday was the date specified in the contract that the buyer had to produce a mortgage commitment. I inquired through my realtor who received from the buyers agent a letter dated on yesterdays date with the commitment but with a condition rider. Some of the conditions were standard fare but also included things like W-2 requirements, depository requirements for the down payment, PMI and some other stuff.

My question is this; I would have thought these items to have been cleared up long ago. I had had some concerns over the buyers financial ability to afford the home and this doesn't seem to be a finalized deal yet.

I am in no pinch to sell my home, I have another and I'm not opposed to putting it on the market.

I sent a letter to my realtor this morning, which was sent to the buyers agent, notifying them of my intention to terminate the contract if this commitment is not sound. I just wanted to make sure this wasn't an open ended thing.

Any thoughts? Thanks for all your help.

Much of what you reference would be material which the Buyer has already supplied, and certainly isn't news to them. The Lending Institution always issues a "Firm" Commitment, crouched in terms which sound like they have their fingers crossed behind their backs when they sign it. (As if they want to plan an exit strategy, if they need it).

A few weeks ago, I had a Buyer upset because he received a similar letter, and he was making a downpayment over $200,000 in Cash and taking a dinky little Mortgage for about $75,000. He got the same kind of "Commitment Letter" as you just read, and blew his top with the Bank's Loan Officer, who told him that this was mostly "Boiler Plate", and she was surprised that he had read it. It was clear to my Buyer that "she (the Loan Officer) had not read it !"

More important, in my case, was that accompanying the "Commitment Letter" was the first comphrehensive Good Faith Estimate of the Buyer's Closing Costs and the costs of his Mortgage. Also came the first reference to the requirement that he obtain Flood Insurance, at a cost of over $1000 per year, or pay to obtain a LOMA (Letter of Map Adjustment) to certify that his property IS NOT in the FEMA Flood Plain.

We had a Closing; but the Loan Officer got lost on the way . . . . which was good, as she had developed a bad habit of yelling at the Buyer on the phone . . . . a little personality disorder which he has brought to the attention of the Bank's President.

I think what you have is "Par for the Course" and Not to Worry . . . . I hope! Good Luck.

Thanks. What I don't understand is that if you say the buyer has already supplied this information, why would there be conditions with the commitment. And is this a sound commitment?

There's always a last minute Employment Verification and Credit Check . . . . just to make sure there haven't been any life altering events during the past 4 to 6 weeks.

I once had that last minute Credit Check reveal some Delinquent Alimony and Child Support issues in another State (Alaska); delinquencies which had not been there 4 weeks earlier when the Loan had originally been applied for. The Buyer's Ex-Wife got wind that her former HoneyBun had escaped to Vermont, and she had her Attorney get the delinquencies put on his credit record. My deal died a very unpleasant death . . . . seeing as the Guy's Current Wife did not even know he had been married previously . . . . so ended this Marriage too. My Seller was ANGRY . . . . but he got over it when we found a New Buyer.

Things happen. What was true one day is incorrect the next. People get Selective Amnesia. If you haven't noticed, the People on this Planet don't always tell the truth. Lying on a Marriage License Application is a Felony. So is lying on a Loan Application; it's like an affidavit. I hope your Buyer is squeekey clean . . . . just like me . . . . No Ghosts waiting in the Closet.

PS: What was the final outcome on the RADON TEST ?

I requested and received the latest calibration results from the machine and checked the licenses of the testers. Everything checked out.
I have a quote to install a radon vent but have held off until I'm 100% sure that the house sale is going thru.

I agree, people do get selected amnesia. I'm still gathering information on this condition report. I just spoke with my agent who told me it's all perfectly normal. However, I'm getting a weird feeling in my stomach that the due diligence was not done properly.
I've learned over the years to trust this intuition and when my gut is telling me something is wrong, it usually is.

Here in Minnesota "the final commitment letter" typically indicates that the buyer has satisfied all conditions, except maybe any work orders. Albeit, in this market and I would think in any market with more people going FHA or with any special financing programs it seems to come down to the last minute to get a deal closed. In addition, here in Minnesota if that letter is not delivered on the date specified in the contract then the PA is automatically canceled.

Most likley all is ok and I agree with Vermont "I think what you have is "Par for the Course" and Not to Worry . . . . I hope! Good Luck."