Can You Get Out of a Florida Home Loan Contract?
As you go through the Florida home mortgage process, you may stumble upon a surprising situation: You actually do NOT wish to purchase a new house right now. All this talk of a “buyer’s market” has you wondering if you’d be better served waiting a few months and see justt how low prices can go.
There’s just one problem: You’ve already signed a contract.
Can you get out of it? Is it a smart move to get out of it? Let’s discuss.
Dealing with a Florida home loan contract
To answer the first question first: yes, you can always get out of a contract. One reason may be that you haven’t received approval yet on your Florida mortgage; if your contract is contingent on a loan, it’s perfectly legal and cost-free to ditch the deal if no loan ever comes your way.
But do you really want to?
That’s the problem with investments. Unless they’re bank deposit accounts of up to $100,000 insured by the Federal Deposit Insurance Corporation (FDIC), they’re never completely safe. And real estate - as we’ve all been reminded lately - is a cyclical industry, dependent on a complex interaction of interest rates, job growth, supply, household growth and other factors.
If you’re hoping to turn your purchase into a profit, you need to consider the local real estate market. You have to balance the risk that home prices may fall with the reality that you’ll never be able to anticipate the exact moment that they’ll reach bottom.
It’s possible that research provides you with enough information that you’re secure in the fact that values will drop and you’re even willing to lose the deposit on your contract in order to wait. That’s your call. Be aware that some areas, such as the Palm Beach housing market, are actually moving up again bit by bit.
Overall, remain informed. Don’t bail on a deal simply because you’re in panic over the length of your mortgage or the expense. However, if prices in your areas are truly plummeting and you simply don’t believe it’s the right time to commit to the cost of home ownership, never be afraid to wait. Only dot the final i’s when you’re comfortable.
