2007-08-09 10:38:53 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If you read the approval the bank gave you it pretty much says something to the affect of -we can change our mind anytime we want. So, yes - at any time before actually giving you the loan (ie closing on the house) they can stop the loan. They don't like doing this, if they approve you they truly do want to make the loan, but if something comes up they can stop the loan at their discretion.
2007-08-09 10:43:03 · answer #1 · answered by Slumlord 7 · 1⤊ 0⤋
Very dependent on the individual circumstances. If you are in the situation where you're obligated to close (settle) but now have no funds due to the bank withdrawing, and you think they unfairly withdrew, then seek legal advice.
If they have discovered some information about your credit history that you either withheld or lied to them about, you'll find that they absolutely can withdraw their approval.
I'd be focused on finding out why they decided not to go ahead, and if possible, addressing their concerns by providing an explanation. If the bank is resistant to your overtures and you can't resolve things quickly, I'd make finding another mortgage your highest priority rather than trying to force a reluctant lender to continue.
Good luck; I've been in a similar situation recently and am still trying to sort out the nightmare. My bank had approved my loan for refurbishment of a large multi-tenancy and then decided to withhold their final progress payment because somewhere along the line they felt that the project had transitioned from "residential" to "commercial", and they only fund residential projects. The fact that they had my plans all along seems to be irrelevant... It's been very stressful.
If you're not using a mortgage broker, I would highly recommend using one - they know the products, they know the system, they know the people, and they can often come up with solutions you never imagined, and can move things faster than you can yourself. They have more power because they bring a lot of business to the lenders.
2007-08-09 17:57:12 · answer #2 · answered by ozperp 4 · 0⤊ 1⤋
Yes if your credit rating changes, or there criteria for acceptance changes, which is happening allot lately, or if they have funding issues which is also happening allot lately. It has now spread from the subprime lenders to the Alt-A lenders and will get worse before better. Market is skitterish and fearful as more and more people are, and will be facing foreclosure in the next couple of months.
2007-08-09 17:45:02 · answer #3 · answered by Pengy 7 · 0⤊ 1⤋
Especially if financed through All Florida Mortgage
2007-08-09 18:09:24 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Absolutely. If the go investigate you're application & find some inconsistancies.
2007-08-09 17:44:06 · answer #5 · answered by jimbobob 4 · 1⤊ 0⤋
Yes. For any reason. As long as their reason is not discriminatory or illegal.
2007-08-09 17:49:03 · answer #6 · answered by Michael C 1 · 1⤊ 0⤋
YES!
2007-08-09 17:41:41 · answer #7 · answered by mrsgilleland 3 · 1⤊ 0⤋