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Part 2 - Mortgage ContingencyThe mortgage contingency is paragraph 8, includes 9 subparagraphs and covers lines 79–167 which is the longest section and the most detailed. This is the first contingency addressed, the most important for the Buyer to complete properly and the longest time line to complete of all the contingencies. Seller spends most of the time evaluating this paragraph to assure the Buyer will be able to complete the transaction despite the price offered. Note to Buyer: Your mortgage preapproval and the Buyer Financial Information (BFI) will be included with the Agreement for the Seller to review. Information from the preapproval will be necessary to complete this contingency. Note to Seller: Buyer’s preapproval and BFI will be necessary to complete your due diligence for the Buyer’s financial ability to complete the transaction. Your agent will be instrumental in assisting you with the evaluation. Which One: Waived or ElectedWAIVED. “This sale is NOT contingent on mortgage financing, although Buyer may obtain mortgage financing and/or the parties may include an appraisal contingency.” A financially strong Buyer may be willing to waive the contingency, without the protection provided, to make the offer appear stronger to the Seller. Any other Buyer who fails to secure financing and not complete the transaction will be in default of the Agreement. Default would mean loss of any deposit and the possibility of additional legal action. ELECTED. “This sale is contingent upon Buyer obtaining mortgage financing according to the following terms:
FHA/VA Provisions
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