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What happens if buyers credit is not approved under the TREC Third Party Financing Addendum, and the buyer gives timely notice to the seller? The contract will terminate and the buyer will get the earnest money.
ing to the TREC Third Party Financing Addendum, the buyer and the property must be approved to obtain financing. If either one doesnt meet the lenders underwriting requirements, the buyers earnest money will be refunded.
Third-party financing is essentially a payment plan or loan agreement made between a contracted lending partner and a consumer. These can come in the form of low-to-no-interest Buy Now, Pay Later (BNPL) programs or even direct consumer loans.
If the buyer cannot obtain the loan approval in time, they will need to give the seller written notice and they can terminate the contract and receive their earnest money back. The buyer can also opt to make make the contract not subject to buyer approval.
The Third-Party Financing Addendum is used when a buyer wants to obtain FHA or VA financing. The addendum used when the buyer must show the sellers his credit worthiness is the Loan Assumption Addendum. The Amendment is used to make a change in the original executed contract.

People also ask

A third (3rd) party financing addendum is attached to a sales contract that outlines the terms of a loan (e.g., conventional, FHA, VA) that is agreeable to the buyer in order to close on the property. The sales contract is usually contingent upon the buyer receiving the loan as detailed in the addendum.
A third (3rd) party financing addendum is attached to a sales contract that outlines the terms of a loan (e.g., conventional, FHA, VA) that is agreeable to the buyer in order to close on the property. The sales contract is usually contingent upon the buyer receiving the loan as detailed in the addendum.
The Third-Party Financing Addendum is used when a buyer wants to obtain FHA or VA financing. The addendum used when the buyer must show the sellers his credit worthiness is the Loan Assumption Addendum. The Amendment is used to make a change in the original executed contract.
A seller financing addendum outlines the terms under which the seller of a property agrees to loan money to the buyer in order to purchase their property.
A third (3rd) party financing addendum is attached to a sales contract that outlines the terms of a loan (e.g., conventional, FHA, VA) that is agreeable to the buyer in order to close on the property. The sales contract is usually contingent upon the buyer receiving the loan as detailed in the addendum.

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