Define Terms: Mortgage Contingency Clause – OnlineBusinessDegree.org
If you plan to purchase a home now or in the future, you need to be familiar with a mortgage contingency clause. It basically serves as a protectant for the home purchaser. A mortgage contingency clause basically states that if a prospective homebuyer is unable to get approved for a mortgage within a specified amount of time, then the contract can be voided. The wording and parameters may vary by contract, but the prospective buyer still has the right to walk away from the transaction if agreed-upon parameters are not met. Mortgage contingency clauses are present in most mortgage contracts, and if there’s not one in yours, it would be wise to get one included.