Legal Question in Real Estate Law in Indiana

I was told by my mortgage broker that was approved for a FHA loan at 3.5% about 30+ days ago.

We are supposed to close on the property in one day and I still have not heard whether the loan has actually been approved --- if underwriting denies the loan, do I have any recourse against the bank for them leading me up to this point and then refusing the loan?

The mortgage broker knew everything there was to know about my credit, credit score, etc. when she told me she could get me approved for the loan more than 30 days ago.


Asked on 1/13/15, 9:57 am

1 Answer from Attorneys
Kenneth Wilk Rubino Ruman Crosmer & Polen

Your purchase contract would most likely have a clause that relieves you of the obligation to purchase if you didn't get a loan---assuming that you're paperwork was drawn up properly. Your brokers' representations may not be actionable. It would take more time and expense to sue him than would be worthwhile. See if you can get out of the contract and then next time, go through a lawyer for all of your dealings.

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Answered on 1/14/15, 10:10 am


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