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can a lender back out at the last minute?

Posted on: 10th Dec, 2010 05:32 am
I am set to close today on a loan for a new condo. Yesterday, they told me something was wrong on the forms the appraiser submitted and that he needed to redo something. So my closing that was supposed to occur at 9:00 A.M. today has now been moved back to 3:00. Shouldn't anything from the appraiser that was insufficient been noticed prior to yesterday?
My credit is excellent, I was preapproved for more than the appraised price, and I am putting 25% down. Can they back out of the loan at such a late date? The lender assured me up front that they would do loans on this particular new condo development, but that some lenders would not. I am afraid they are changing their minds now. Can they do that?
In general, its totally depends on your relationship with lender.It may be some legal aspects will help you in some extent to prevent such back out from lender.
So i will suggest that do not depend totally on one lender. Before going for any loan procedure do the enqiry at several local lenders. Check the reputation of lender in market.
Best luck.......!!
Posted on: 10th Dec, 2010 09:01 am
Of course a lender and their processors and underwriters should notice they need something from anybody, appraisers included, prior to closing.
That would be a perfect world.

Unfortunately, it is possible for someone to notice something last minute and that has happened to you.
It sounds like they need something from the appraiser to make sure the loan is saleable in the secondary market. By virtue of the fact the closing was rescheduled same day, it sounds pretty much like something they expect to be ok, but, it is something they need and must have from the appraiser.
The size of your down payment and the amount of money and income you have has nothing to do with the appraisal requirement.
Annoying, but, if you close same day, end up where you should be.
Posted on: 10th Dec, 2010 11:10 am
Due to close yesterday got call , buyer had garnishment on them an was just found, now not closing, an they moved closing up twice shouldn't this been caught before, an moved out of ours an under contract on another one, an can't get out of it,,,,,,,,
Posted on: 29th Jun, 2011 02:58 am
Hi Guest!

Welcome to forums!

You're in a tough situation. I will suggest you to contact a real estate attorney and take his opinion in this matter.

Feel free to ask if you're further queries.

Sussane
Posted on: 30th Jun, 2011 12:10 am
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