I am trying to buy a house. I gave ten thousand dollars honest money. Then I got the approved letter from the bank. Then ONE WEEK before the closing date, the bank rejected the loan. If the seller doesn't agree to extend the closing date, do I lose the honest money? Pleaseeee Helppppp!!!!!
2007-03-16 14:33:46 · 10 answers · asked by eragon1029 2 in Business & Finance ➔ Renting & Real Estate
This is happening with some regularity now. Due to what's happening in the sub-prime market, lending requirements have changed. The investors who essentially give the banks money to loan to you have decided they no longer want to fund certain types of loans, and banks are rescinding their approvals, even on the date of settlement.
The financing contingency (I'm betting you had one) was likely lifted when you gave the approval letter to the seller (I'm also assuming you did this too).
You more than likely will need to sign a release to authorize the escrow company to transfer the money to the seller. If you don't, you'll end up in court, which might be a good thing if the seller refuses to play ball. Courts aren't keen on depriving buyers of their life's saving, provided you acted in good faith.
Try to get the seller to work with you. He probably doesn't want to lose the sale either.
EDIT: In response to "Ilovekeylimepie"s response... It may well depend on which state you live in. In my state, a financing contingency is in force until it is lifted, though the contract wording is a bit ambiguous. Generally, you get xx number of days to obtain financing. After that time period, the seller's agent will demand to see proof that you have in fact arranged financing; when you provide it, you have satisfied the terms of the contingency, and thus you had better hope that your loan doesn't fall through. If you don't provide this proof, the seller has the right to void the contract and refund your deposit. Or, they can do nothing and let the contingency ride, so to speak. ...most agents/sellers want to eliminate contingencies, though, so when your provide the "I'm approved" letter (not just the pre-approval letter, usually), you're committed to the transaction.
Again, good luck.
2007-03-16 15:27:20 · answer #1 · answered by tax_man_cometh 2 · 1⤊ 0⤋
Did your contract have a mortgage contingency clause?
If it did and you were rejected, you can get your money back.
A mortgage contingency clause is still in effect if your loan gets yanked. It won't matter if you handed over an "I'm approved!" letter beforehand. If you did not get the mortgage, thats all that counts.
Pre-approvals are not guarantees written in stone. It simply means that at that moment, based upon the information available, you qualified. Many things can change between the pre-approval and the actual loan closing.
Also, loan commitments can be retracted if conditions are not met.
You were rather thin on details, so I don't know if you had a pre-approval or a commitment.
2007-03-17 05:52:59 · answer #2 · answered by BoomChikkaBoom 6 · 0⤊ 0⤋
Something happened to your credit between the time offer sheet was sent to owner and the closing date. HAPPENS ALL THE TIME. and accident, a mist credit card payment, the home shopping network gets there hands on you
if you had a broker or agent - file a law suit. there only suppose to be an application charge and fees at closing. that's it.
if you did anything else then that, like giving the owner money for appraisal and legal fees you, my friend, are out of luck. there are hundreds and hundreds of websites that tell you the process, and plus there are real estate agents and mortgage brokers that get paid for services, AT CLOSING.
2007-03-16 14:51:31 · answer #3 · answered by August P 2 · 0⤊ 0⤋
Possibly but in this market, I think the seller will cooperate with you. Get another lender right away. If you are working with a Realtor, they should be able to help you with this.
I any event, that $$ you put down is being held in an escrow acct. for you. The seller doesn't have it yet.
2007-03-16 14:56:52 · answer #4 · answered by SUSAN K 3 · 1⤊ 0⤋
If an over draft on her account isn't a habitual subject, they might desire to have the courtesy to eliminate that $35 fee. in many cases banks will try this for "first time offenders". yet yeah, it feels like they're scamming her.
2016-10-18 21:22:47 · answer #5 · answered by ? 4 · 0⤊ 0⤋
You could- it depends on how you purchase agreement reads-- but most states don't allow them to keep all the money. If you want to buy the home call me and I'll try and work it out- if you are in a state I am able to do business in- if not I should be able to refer you to some one.
Boyd
Charter West Mortgage
866-206-7717
2007-03-17 07:13:24 · answer #6 · answered by bobhope1215 2 · 0⤊ 0⤋
How can the bank send a letter of approval and then rejection.
2007-03-16 14:36:59 · answer #7 · answered by ontheroadagainwithoutyou 6 · 1⤊ 1⤋
What tax_man said is very good. It does deend on what is in your contract, and the laws of your state. I too hope you're using a Realtor.
2007-03-16 16:06:35 · answer #8 · answered by teran_realtor 7 · 1⤊ 0⤋
see a attorney, maybe you can sue the bank for defaulting and makeing you lose your money. See a criminal attorney.
2007-03-16 14:40:03 · answer #9 · answered by Anonymous · 1⤊ 1⤋
thats stupid
2007-03-16 14:35:52 · answer #10 · answered by Anonymous · 0⤊ 2⤋