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L-L-L-L-Lock It Up!

For those readers who love the dilemmas I sometimes face, here’s one you’ll probably enjoy way more than me.

When  a contract’s targeted closing date is May 6, but a buyer locks in a mortgage note rate only through April 13, do you advise the seller who wants to move out in early May to be accommodating? A rate increase after the lock expires might result in the lender pulling back a commitment if the buyer doesn’t qualify for a higher monthly payment (effectively killing the transaction).  Or do you advise the seller that he can certainly stick to the contract’s terms and justifiably say, “Your rate lock is not my concern.  I’ll close before your commitment deadline of May 13?”

Possible dead deal vs. potentially homeless seller.  What’s a counselor-at-law supposed to recommend? I’ll share my advice tomorrow.

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LitaWrites

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