Well probably not, but you may have another way to do it. California law allows you to withdraw anytime you find out any previously undisclosed information. So if they even hand you a title policy you can use it to back out. So you really want to find another way out.
Of course, all of this really sucks though. Why should you have to sneak around because the lender did not fund your loan? Give me a call let's see if I can fund it for you. I close very quickly.
It is too bad these lenders are not held accountable for this type thing.
You should contact me as soon as you can. My phone number is 949-297-1207.
Your question was duplicated on our site and you can thus find additional answers to your question at the link below.
I know you said the lender "said it was going to fund", but apparently, you never got that in writing.
Do you have an agent? Did your agent advise you to remove the contingency prematurely?
As was mentioned..........you need to speak to a real estate attorney right away.
If all your contingencies are removed you are possibly going to lose your deposit. Check with your agent and see what contingencies (I am hoping) you have still left. If it's FHA you may still have some other options but I can't comment without seeing the paperwork so ask you agent and a big good luck to you :)
The Carrabba Group
Keller Williams Hollywood Hills
Meet with your agent and broker and review your contract. They should be helping you to find a solution.
Understanding why the loan was not approved may help resolve the situation.
Definitely play hardball though, don't just sign off on giving up your deposit. Most people think that just because the liquidated damages provision is initialed that they loose their deposit. Not the case. Those provisions are hard to enforce and most people would rather negotiate than litigate. The escrow company can't distribute the funds on deposits without either both parties signatures or a court order.
Get yourself some capable representation and see what you can work out.
Hope this helps