Buyer's spouse now refuses to sign loan documents
Because the spouse also signed the Contract for Sale and Purchase, the buyers are now in default and their good faith deposit is at risk of being lost.
José: Basically my question is, if I'm go into contract-- a home contract and at last minute my wife decides not to sign and I believe that's law now that we need to do that. Do I have any options with the lender and on the seller? Does the lender have the right to stay with my escrow money or even the seller, or something that can be worked out with one of them?
Attorney Tom Olsen: José you're the buyer, on the contract for sell and purchase are you the sole buyer or is it you and your wife?
José: Me and my wife.
Attorney Tom Olsen: Now you're proceeding to get your loan but your wife is refusing to sign loan documents?
José: It's more the bid [sic] I believe that she needs to sign. That's a signature that is required for me to move forward with the loan and to finalize the deal, if I don't have her signature they will not allow me to close.
Attorney Tom Olsen: Okay, that part I understand José. She's not willing to do so that means you are in default of the contract José. How much of a deposit did you put on the contract when you entered into it with your sellers?
José: The escrow was 5,000.
Attorney Tom Olsen: Okay, your $5,000 is at risk, if your wife will not cooperate and this deal does not get done, your more than likely you're going to lose $5000. Does that answer your question José?
José: It does, thank you very much Tom.