Settlement falling through

**RUDY351** · 02-01-2008, 05:27 PM

I was supposed to make settlement today on a condo. Yesterday Wells Fargo the mortgage company calls and says underwriting has a problem. There are 33 condos in the association. Their concern is that there are 7 unit still for sale and the condo is a seasonal condo. Closed for 3 months in the winter. To date I have not paid the mortgage company anything. My question is at this point if I decide to go find another mortgage company am I obligated to pay Wells Fargo anything?
Thanks for your help....

**RobM** · 02-25-2008, 08:20 PM

The answer is NO. You only need to pay them if you close. If they have a problem now...it is their problem and not yours unless you signed some document somewhere saying that you would pay something in the event it did not close but I doubt that you did...so no

**carlam** · 02-26-2008, 03:58 AM

What kind of fees do you think you owe them? For the appraisal? For their "services" - they haven't followed thru to close so it can't be for that...

I have to ask... what if another lender has the same problem? I don't know where this condo is, but the condo market here is pretty flat.

This "issue" may be a blessing in disguise.