Hello msmob24,
I understand your concerns, but I honestly think you may well be overreacting a bit.
I’m not sure how much of a “collapse” you are going to see. There’s already so much pent-up demand across the entire consumer segment of the economy that we will see things recover extremely quickly once this virus mess is finally behind us. If the politicians will get off their rumps and get the “stimulus package” passed, the economy is probably going to be okay with just a small dip, not a collapse.
Where BOA is concerned, under no circumstances whatsoever are you allowed to contact them directly. Your NACA counselor is always your point of contact, or you may call NACA Member Services at 425-602-6222.
Remember that you are still required to submit all pay stubs to your file right up until the time you close on the home. If your income drops enough to make the loan unaffordable, BOA can deny the loan right up to the last minute. If your Purchase and Sale Contract was written the way we suggest, your Earnest Money Deposit should be refundable if you are denied the loan, as Nelsont noted.
If you walk away of your own accord however, you will without a doubt lose your EMD. The whole purpose of the deposit is to prevent you from making a last-second decision to walk away from the deal. The seller would have to feel sorry for you otherwise to not simply keep the deposit.
In short, the best thing you can do at the moment is just ride this out.
Tim Trumble
Online Operations, NACA
ttrumble@naca.com
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