Foreclosure in Elmhurst>Question Details

Ak, Home Buyer in Elmhurst, Queens, NY

is there any cancellation letter from the buyer when the bank did not approve the mortgage?

Asked by Ak, Elmhurst, Queens, NY Sat Oct 2, 2010

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7
Louie Bello’s answer
No, the buyer is not required to give a cancellation letter, but generally the lawyer will send a letter to the sellers lawyer with the letter of declination so not to jepordize the buyers down payment.
0 votes Thank Flag Link Tue Oct 5, 2010
Hello, the lending institution must give the buyer a letter stating that the loan was denied on official letter head and signed by a head person in the department. The denial must be in writing in order to present to the seller's attorney in order for the down payment to be returned to the buyer.

I hope this answer helped you.
Web Reference: http://www.RhondaHolt.com
0 votes Thank Flag Link Sat Oct 2, 2010
Hi Ak, Once the bank denies a mortgage application -it is usually sent to purchasers / attorney which in turn will be sent to the seller's attorney. (If the contract is contingent on a loan-escrow money is either refunded-or reason for denial can be remedied within reasonable time-application to another bank can be made if the time allotted to get a morgage has not expired or can be extended). Terry K 718-614-3167 cell or email me therese.korahais@elliman.com
0 votes Thank Flag Link Sat Oct 2, 2010
Not sure if you are asking if the lender sends the buyer a letter denying the loan or if you are denied a loan do you need to send a letter to the sellers side.

What happens is you should receive a mortgage denial letter from the lender if you are not approved for a loan. Then your agent or attorney will send a cancelation letter to the sellers side canceling the deal. There should be a financing contingency deadline in your contract that this needs to be done by so check to make sure that you are within the time frame.
0 votes Thank Flag Link Sat Oct 2, 2010
Consider asking your attorney the question and or loan officer---a letter of denial is usually issued by the lender--not exactly sure the question is understood.
0 votes Thank Flag Link Sat Oct 2, 2010
I'm not sure if I'm understanding your question fully... If you are the seller and the buyer's bank/lender has not approved their loan, yes, you should request a letter from the lender. (Usually people/sellers and their agents find this out by having received a termination on contract from the buyer.) Hope this helps.
0 votes Thank Flag Link Sat Oct 2, 2010
there is a denial letter issued by bank.
0 votes Thank Flag Link Sat Oct 2, 2010
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