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right of first refusal

Posted on: 07th Jun, 2006 01:32 pm
Can a lender ask me to sign a right of first refusal to provide financing doc. In case if it is asked so, what should I do? I am in Michigan.
hi alec,

some lenders are there who ask their consumers to give them a right of first refusal so that they can handle the future refinancing of your loan.

you must be aware that this type of document is unlawful and is prohibited under michigan's mortgage brokers, lenders and servicers licensing act.

so, be cautious of these documents. once you sign such a document and it gets recorded with the register of deeds, a "right of first refusal to provide financing" can pose problems with the sale of your home by delaying it. it can hold back your ability to refinance using a different lender.

keep in mind that you need not sign that sort of agreement. if asked to do so you may consult a lawyer or can file a complaint with the financial institution bureau of your state.

god bless you.

for mortgagefit,
samantha
Posted on: 07th Jun, 2006 02:07 pm
Thanks Samantha. I will avoid signing such a document.
Posted on: 07th Jun, 2006 03:00 pm
What if somebody has already signed a right of first refusal?
Posted on: 07th Jun, 2006 04:07 pm
Hi,

If a "right of first refusal" is already signed and recorded with the register of deeds, you need to contact the lender first to demand a release.

If you fail to get positive reaction from the lender, you can file a complaint with the Financial Institution Bureau of your state. You can also file a lawsuit against the lender.

God bless you.

For MortgageFit,
Samantha
Posted on: 07th Jun, 2006 04:20 pm
My late husband's ex-wife has a signed first refusal to buy what I thought was my house.I do have a deed that was signed by me and my late husband. What chance do I have that my right out weigh hers?
Posted on: 23rd Jul, 2008 08:29 pm
Hi Guest.

Welcome to the forum.

If you are on the deed then you should be the owner of the property. Can you please tell me how your late husband's ex-wife claiming the property and why you are concern about it?

Best of luck,
Larry
Posted on: 24th Jul, 2008 03:46 am
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