perf mortgage addendum-Lease Options,
What are the specifics of perf mortgage addendum
Perf mortgage addendum is a continuation of the price as well as the terms of the purchase agreements this is between the seller as well as the buyer for the property. This includes the buyer’s mortgage financing as the mortgage financing is very important in the transaction. The perf mortgage addendum states that as part of the purchase agreement, till the closing date the contingency will be in effect and this is also added into the purchase agreement.
However, if the buyer cannot finish and complete the financing before the date of closure then the purchase agreement will be cancelled and the earnest money is refunded to the buyer. The effect of the contingency is till about 3 weeks or more so that the buyer is able to get a loan approval letter or some statement where the lender informs that he or she is willing to loan the amount as well as the fact that the loan will be given before or on the approval date.
The contingency also informs that the financing contingency can be waived off by the buyer and that the seller is able to cancel the purchase agreements if the buyer is given 15 days to cure. When the purchase agreement has been cancelled, the buyer is refunded back his entire earnest money.
The buyer is also given the loan for a specified period of time and that too with a specific rate of interest. This could be either adjustable or fixed as per the terms and conditions specified.
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