Home Buyers Remorse

Transcript

STEVE MILLSTEIN: Title attorney

You signed the contract and now you are having some second thoughts, well you are going to look to that contract and find out if there are any rights in that contract that allow you to void the contract.

STEVE LOVEJOY: Buying a house is usually the largest financial transaction that most consumers get themselves involved in, so it is critically important that if you are going to sign that you are going buy that house.

STEVE MILLSTEIN: When you are done, it is over, you cannot call them back an hour, a day, or a week later and say wait a minute, I do not think I should have done that.

STEVE LOVEJOY: There is no 3-day buyer's remorse on the purchase of a home. There is not.

STEVE MILLSTEIN: There is in a refinance transaction what is called a 3-day right to rescind or 3 days during which you can review and contemplate the transaction and elect to cancel it.

PETER HOLLAND: But that is a refinance of a house you already own. If you have a purchase money mortgage, meaning you are buying the house for the first time, there is no right to cancel that.

STEVE MILLSTEIN: When you walk away from that table, that loan is yours, that house is yours, and you do not have an opportunity to question your decision.

STEVE LOVEJOY: So you better make sure that that is the house you want.

STEVE MILLSTEIN: The contract itself unless it provides specific rights for you to get out of the contract is a binding agreement.

STEVE LOVEJOY: There are sometimes some contingencies, there is a financing contingency, which says if I cannot get appropriate financing at a reasonable cost to buy the house, then I do not have to buy.

STEVE MILLSTEIN: There may be other things based on inspections and other things that have to be done to the house that may give you the right to terminate the contract.

STEVE LOVEJOY: Another escape valve is if I have to sell my house in order to buy the new house.

STEVE MILLSTEIN: But if you sign the contract other than those specifically outlined in the contract once you sign, you are going to buy that house unless the seller agrees to let you out and that is not likely.