Legal Question in Real Estate Law in California

Re: Purchase Real Estate

What did they tell you in addition to "You're not qualified?" Did they tell you not to proceed with your transaction? Did they put any blame on you, for example alleging failure to disclose or fraud?

This is a very awkward and difficult position for the parties to be in, and even though when the funds are placed in escrow and the lender has submitted signed papers to escrow, and you might technically be in a position to tell the lender, "Sorry, it's too late, a deal's a deal," I see some risk of litigation.

What is the escrow officer saying?

The lender's position is not very strong if they have funded, and you didn't commit any fraud; you would then have a good argument that it is too late for the lender to change its mind about your qualification.

I'll have to pass on giving you advice, other than to think about my comments and also consider a face-to-face consultation with a local attorney.