Home Buying in 14607>Question Details

LJ, Home Buyer in Rochester, NY

Can I drop the loan from my lender without penalty and go to a different bank after 30 days? the loan is approved but can't close.

Asked by LJ, Rochester, NY Tue Jul 5, 2011

The bank sent me letter that the loan was approved after over 30 days but we can't close because they need more document that were given to them months ago. Are there any legal recourse for this delay? Not sure where I can go to tell my frustrations.

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Annette Levinson’s answer
You do not have to accept a mortgage commitment since it is unilateral. There are no penalties unless you gave a commitment fee to the lender. The apraisal can be assigned to another lender. That being said, if you went to another lender you would still need to give them the same documentation your lender is asking for. You should keep a folder marked mortgage where you keep copies of everything you sent the lender and a copy of your mortgage application and GFE. Find the documents they are asking for and send copies to the requestor and to their boss (with a note). I bet they won't misplace anything on your file.
0 votes Thank Flag Link Mon Jul 25, 2011
Only recourse to the delay is to provide the documents to them again - things happen, documents get lost, etc. It's not professional but it happens. So you can continue with the lender who loses your documents, or you can choose a new lender... but you also likely have closing date spelled out in your purchase contract and if you miss that closing date, there could be repercussions including you not being able to buy the home anymore, you losing your earnest money deposit, not getting any "application fees" back that you have paid in relation to getting the mortgage, or you having to pay a fee for every day you need to extend the closing by (called a "per diem"). Before you do anything with the financing, like cutting the lender loose or what not... definitely consult with your attorney like Anna says.
2 votes Thank Flag Link Tue Jul 5, 2011
Consult with your loan officer regarding any penalties, if he/she is not being helpful contact his/her supervisor and voice your concerns; for any legal advice needed consult with your attorney....
1 vote Thank Flag Link Tue Jul 5, 2011
LJ regret to hear of your problem and dilemma.
You could drop the lender and go else where, what you are likely to loose
Is the money spent for appraisal, as well as be likely late on closing of your home.

In the case of bank owned homes there cam be per diem charges.
Generally, any new lender may take a month to 45 days.

Provide the documents, grin and bear, move on.

Web Reference: http://Ruthandperry.com
0 votes Thank Flag Link Sun Jul 24, 2011
So, you want to start all over because you don't want to resend documents you already sent; thus apparently have readily available? Ever heard the phrase "cut off your nose to spite your face?"

A 30 day approval, (even a bit more) while not miraculous, is certainly acceptable. Why you would make such a stink over a request for documentation, only you know, but on the surface it seems petty and frivolous. Why can't it close? You say you already sent the documents, just send them again. If you emailed them follow these directions.

1) Open email
2) Find email
3) Forward email

0 votes Thank Flag Link Tue Jul 5, 2011
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