It depends on your state/region's specific contract.  In ours, buyers may substitute alternative financing, however, if they wish to retain the protection of the financing contingency, they must have the written permission of the seller, in other words, execute a new financing contingency.  Otherwise,  if they substitute alternative financing and that financing causes any harm to the seller (increased expense, delayed settlement, etc.) then they are in default.

NOT AT ALL. The only issue is for the buyer who would probably loose their deposit if they did not get a mortgage. 

It likely depends on the terms in the contract.  If a buyer can still close the transaction in the agreed time frame and without any additional cost to the seller, the type of loan(s) shouldn't make a difference.

It's done all the time with 100% financing. Why would you if both loans are going to go thru? That's like shooting yourself in the foot & being paranoid.

Might be they are borrowing against something else & getting a new loan for the balance, who cares.

It depends on the terms in your contract. While if there are still qualified it should not matter written permission from the seller may be needed since it is a change in the contract. Talk with your broker.

I'm guessing this will be STATE specific ???

Doubtful

Susan Haughton has the contractual terms that apply to my State.

Buyer gets the first and the deal is done. Closing may be another problem. Contract language will prevail and could lead to a loss of the earnest money. Time for the seller to get an attorney!

The answer is .... ahhhh that's a shame.

Check with your teacher and your real estate commission in your state.

Check with your state.  I have a deal right now where the buyer put conventional on the offer and switched to FHA during the escrow.  State's lawyers said "You can't cancel for that, but you don't have to agree to the loan."  In other words, we didn't have to sign the FHA seller paperwork, but we couldn't cancel because the loan changed.

this is why we have real estate attorneys... I'm confident I know the correct answer, but I don't wear that hat...

Follow the terms of the contract.

The whole contract would come to bear...

Not at all, Buyers change terms all the time.

Do not believe so; ask a local attorney.

What are the terms of the contract?

This depends on the contract being used. In Oregon, our purchase agreement requires that the seller agree to any changes in the terms of the financing of the buyer.  If the buyer was not honest in their offer, then this could be terms to terminate.

I do not think so.

The buyer needs to bring the money at the closing table. Period!

I am not an attorney and never give legal advice. Consult an attorney and stay out of trouble.

If the buyer does not close there could be an issue, but no issue if there is not cost to the sellers and they close on time.

Ask an attorney. It depends on the contract.

   Probably not, as long as they get a loan (or loans) and the deal closes.  But it depends upon the specific language in the contract.  See an Attorney for legal advice.

Why would they want to??? 

Isnt the goal to sell the home?

ask your broker

As a Mortgage Banker, I can try and answer. Some lenders in order to avoid their borrowers paying Mortgage Insurance,can do an 80/10/10 mortgage. This means 80% First,10% second and 10% down. Many borrowers have no idea about the various types of mortgage programs available,and simply relied on their mortgage professional. As for the LEGAL issue....that's why we have attorneys.

It is a change in terms of the contract.  Technically, the contract would need to be modified with an addendum.  Most of the time the listing agent and sellers don't know about the change in financing ... until much later in the game. 

Depends on the contract terms.  This happens sometimes and as long as it closes and doesn't change anything for he seller (costs, closing date, etc) it's generally not a problem.  But, if the seller really wants to know this answer he/she will need to contact a contract attorney and ask this question. -Kasey

Scott Godzyk nailed this one!

Depends on the contract language and the state it's written in.