Novice Homebuyer May Be Out $8K After Unwittingly Signing Contract Sans Loan Contingency On Foreclosure, Then Discovers Mortgage Insurance Unavailable

In Edmonton, Alberta, CTV Edmonton reports:

• A young woman is now fighting for her life savings after a housing venture went through the cracks. Brenda Vanner says she cashed in her RRSPs [Registered Retirement Savings Plans] and her savings to make an offer on a property that was up for foreclosure. "It seemed like a good deal and a real good property to buy," she said. But days before the deal was set to close, the woman says she was denied mortgage insurance because of deficiencies on the property.

• The 23-year-old signed a contract with no conditions, and may now be out $8,000. "I was naive. I took for granted that someone was looking out for me and I will never do it again. I just want to make sure it won't happen to someone else."(1)

For more, see Young woman fights for life savings after housing venture plummets.

(1) This story illustrates the importance of being properly advised before signing a real estate contract, as well as having the premises thoroughly inspected for defects (preferably by an inspector the buyer obtains on his/her own, not referred by anyone who has a vested interest in seeing the transaction consummated (ie. seller or commissioned real estate or mortgage broker/salesperson). For a story on what can happen when a buyer gets the wrong inspector, see Contra Costa Times: Brentwood leader's company crumbles in wake of questionable home inspections (A Brentwood councilman's contracting firm has collapsed under the weight of impending lawsuits over home inspections gone awry, underscoring the perils for homeowners and firms alike in a largely unregulated industry)).