“Hubbard Clause Decisions are Never Easy”

Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

  “Hubbard Clause Decisions are Never Easy”



Hi Joe,

This is the moment of truth. As you know we are under contract to purchase subject to sale of our current home, not sure why they call it a Hubbard Clause. Anyway our home is still not under contract even though it has been shown a number of times.

I know you have shared numbers with us and we can actually qualify without selling, but we are not comfortable taking on that kind of monthly payments. It is going to end up being around $5000 per month. My agent has suggested that we rent our current home and put it back on the market in a year or two.

All of this is further complicated because the home we want to buy will fit our needs for a number of years.

As you can see we are on an emotional roller coaster. Please share your thoughts with us.  



I carried on three different conversations with them. This is not a conversation I want to have by email, this needs to be verbal. When finally talking this through from every angle, the decision was made to move forward with the purchase.


These folks had very strong reserves and they could handle their current home selling in 2020. The Realtor assured us both that the property was priced correctly and there was a lot of equity if the decision was made to lower the price. Also, when they closed on the home that they were purchasing in January, that would mean that the first mortgage payment wouldn’t be until March.


These folks made the best decision for themselves, but that would not be the case for others.


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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

If that home isn't sold, it's overpriced.... the agent is too intimidated to ask for a reduction! 

Jan 27, 2020 03:19 AM #1
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Joe. Never heard of a "Hubbard Clause" by name. Must be a local thing in your area. In places I have worked it is referred to as a "kickout clause". And, many cannot go forward with a purchase without sellig their current residence. Good for these people and their position. Enjoy your day!

Jan 27, 2020 04:13 AM #2
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good afternoon Joe. I never heard the term Hubbard clause before. That said, it is always difficult to decide which way to go.

Jan 27, 2020 09:39 AM #3
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