my bank loan was denied 1 week before closing. Reason given: the coop I wish to buy has a B plus plus

Asked by Lynn, Jackson Heights, Queens, NY Fri Oct 10, 2008

insurance rating and now only an A is acceptable. Is this legal and do I have any recourse

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James Wheeler, , Tampa, FL
Fri Oct 10, 2008
Remember the golden rule: Those with the gold make the rules. Your loan can be denied for any reason except illegal discriminatory reasons.

Take-away: Work with mortgage specialists who identify such potential issues early on and advise you accordingly. Realize that in the current economic climate, working with reliable professionals is more important than ever. Rates are rarely the deciding factor. Getting your loan approved at all is the issue. The more you simply shop for a low-ball quote, the more likely you are to receive nasty surprises.
3 votes
For Sale By…, , 11372
Thu Nov 18, 2010
As a Jackson Heights co-op seller, I was sorry to hear this. Hope that it works out for you. Our board has never had this problem, but perhaps because the coop does not carry a mortgage and our finances are solid. Was this with one of the original garden buildings? Wishing you the best.
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0 votes
Dp2, , Virginia
Sun Jun 13, 2010
Recourse, no . . . but you do have some other options: seller financing, private money loans, etc.
0 votes
Joseph Hasti…, Agent, Bayside, NY
Sun Jun 13, 2010
I know this is an older question but I have an observation.The Bank would have known the building rating prior to commiting to the loan. Since the letter of commitment and Aztech papers would be included in the board package prior to the board interview and acceptance and then set a closing date, this question doesn't sound "right."

The Aztechs would have needed to be signed and ultimately returned to the bank for the closing to proceed. Nope, just doesn't sound right.
0 votes
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