QUESTION
What can I do after my loan was approved but Lender is denying the closing?
Asked on May 29th, 2013 on Landlord and Tenant Law - North Carolina
More details to this question:
I am in the process of buying a new Condo and I was given a full loan approval from my lender a week back. I have my closing on May 31st and now the lender comes back and says she cannot close as they have not yet received my tax transcript for 2012. During my conversation with them, I had already briefed them that I will be getting my refund a bit late this year because I had applied for an ITIN for my wife. They said they were fine and then approved my loan. Today with 2 days to closing they are coming back and saying they cannot close my loan. I am desperate to sue them. I have all the proof in emails and mails that they have given me approval of my loan and clear to close. My down payment is now in jeopardy. It would be great if someone can say if we have a valid case and help us proceed further.
2 ANSWERS
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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You can sue them, but it will not do any good. I am sure the approval documentation states that all documents must be in order, etc. Despite what the loan officer said, it is in the hands of underwriting and if underwriting does not approve, there is no loan. I suggest you do your best to get that tax transcript as soon as possible.
Answered on May 31st, 2013 at 1:32 AM
Family Law Attorney serving Durham, NC
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Morelos Law Firm
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It depends on the documentation you have received already regarding your loan, e.g. the "prequalification letter" or "loan commitment" or "pre-approval letter" etc. Generally, in the small print somewhere it still says that everything is still subject to later underwriting or full approval until final closing conditions have been met to give a final "clear to close". You likely don't have grounds for a lawsuit, but you can always gather your documents and have an attorney review. If anything, maybe a strong attorney complaint letter is in order
Answered on May 31st, 2013 at 1:30 AM