Financing on USDA home loan not going to be approved..contract signed and closing coming up..OPTIONS?

Asked by trtulip315, Chicago, IL Tue Mar 26, 2013

Signed a contract to purchase a home on March 10--passed inspection, appraised for loan value..but loan not approved now. Mortgage agent trying to convert me from USDA to FHA--but I do not have funds for the conversion and contract was written as USDA loan. What is my legal liability to pull out?

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16
stephen webber’s answer
stephen webb…, Agent, Kirkland, WA
Thu Mar 28, 2013
You have every riight to cancell the agreement. If yu carefully read the contract you will find the situation defined.
We are obligated to suggest you contact an attorney

Best of Luck, Stephen Webber
0 votes
David Hanna, Agent, Chicago, IL
Tue Mar 26, 2013
You can try and find another loan source (have you tried your local community bank?) or ask your attorney to get you out of the contract.
1 vote
Matt Laricy, Agent, Chicago, IL
Tue Mar 26, 2013
If your loan got denied there was most likely a clause that it was contingent on your loan. Refer to that and ask your attorney.
1 vote
mortgage contingent is upon buyer obtaining a firm written mortgage commitment on or before april 5th....Does that include the letter that the lender sent saying I had been pre-approved for financing up to a set amount, and now the financing is denied? Do I have to go with the option the mortgage broker is suggesting if it is not financially possible for me?
Flag Tue Mar 26, 2013
Kathy Lewis, , Valdosta, GA
Tue Nov 10, 2015
It's depends on why the loan wasn't approved?

USDA Mortgage Hub
100% USDA Rural Housing Loans
Serving all 50 states
Ph: 800-691-8826 (7 days a week)
http://www.UsdaMortgageHub.com
0 votes
Riccardo War…, Agent, Bolingbrook, IL
Mon Apr 1, 2013
I would also talk to your real estate attorney to get some viable options. If you have a bit, give me a call if you would like to discuss.

Sean Cochran
http://www.qmlending.com
630-470-6830
0 votes
Russ Ravary, Agent, Commerce Township, MI
Sun Mar 31, 2013
Do you have a mortgage contingency in your contract? You don't have the ability to buy the home so I think the seller will let you out so they can sell their home to a qualified buyer.
0 votes
Cherrie Cata…, Agent, Chicago, IL
Sun Mar 31, 2013
Find out why the loan is not going to be approved USDA. You may want to look at a different lender.

Also, speak to your attorney. If you have a mortgage contingency, you should be able to pull out.

Good Luck and please let me know if I could help.
0 votes
allan erps,A…, Agent, Pearl River, NY
Sun Mar 31, 2013
With any contract you should have a Mortgage Contingency. If that is the case and you cannot get a mortgage your earnest money should be returned.
0 votes
Andrew Luett, Mortgage Broker Or Lender, Chicago, IL
Sun Mar 31, 2013
Hello,

Consult your real estate attorney to discuss the options pertaining to the fully executed contract in place.

Hopefully this helps.

Thanks,
Andrew
Web Reference:  http://www.luettmortgage.com
0 votes
Cindy Wilson, Agent, Chicago, IL
Wed Mar 27, 2013
Don't waste any more time asking for advice on a website. Go directly to your attorney.
0 votes
Manuel Brown, Agent, Chicago, IL
Wed Mar 27, 2013
Hopefully your attorney has been on top of this and has left a contingency if financing falls through and in your case it did.

As my colleagues have advise talk to your attorney and talk to another lender as well.

Best of Luck.
0 votes
Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Wed Mar 27, 2013
You will need to speak with your attorney for legal advice - this will be based off of your contract
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
0 votes
Philip Sencer, Agent, Chicago, IL
Wed Mar 27, 2013
You need to speak with your attorney as you have not give all the info needed to answer. It depends on how the contract was worded and other things. Only your attorney can tell you your options.
0 votes
Bill J Delig…, Agent, Naperville, IL
Tue Mar 26, 2013
Talk to your attorney, but if the new loan is substantially different than the old loan, then you may have a may out. Check the contract details.
0 votes
JIM Michaels, Agent, Chicago, IL
Tue Mar 26, 2013
legal liability =legal question

We are not licensed to give legal advice.
0 votes
Kristi Smith, Agent, Fort Smith, AR
Tue Mar 26, 2013
I'm sure in your contract it is contingent on loan approval so if you were not approved for the loan then you should be able to void the contract (depending on how your contract is worded). Of course your agent is going to do their best to give you different options for obtaining a loan and to get you into the house you love...... that is their job. Good luck and don't give up just yet. Talk with your lender about your other options.
0 votes
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