Legal Question in Real Estate Law in Michigan

We contacted a mortgage company in April. My husband has a bankruptcy from 2 1/2 years ago.....and I have a short sale a previous home from 2 years ago. In April, we presented all this to the mortage comp. and they said enough time had past and we were "golden"...my husband has a credit score over 700 and mine is high 600s. Our debt to income ratio was also very good. So....he gave us a preapproval and we found a home...paid for a appraisal, and an inspection, even took money from our IRA to cover the remaining closing costs. we were scheduled to close 7/16...all along being told we were good. seven days before closing, we were told the loan wouldnt go thru-not understanding why if this was the case we were told differently in April-nothing in our lives or income or credit has changed since . In the meantime we have told our current landlord we are moving out...and now have nowhere to go since we have thought for the last 2 1/2 months that we were moving. This has caused extreme hardship for us, and time and money. Do we have any legal standing since we feel like we were mislead for months by this company?


Asked on 7/20/10, 8:09 pm

1 Answer from Attorneys
Jesse Sweeney Sweeney Law Offices, P.L.L.C.

If they knew or had reason to know that based on promises they gave you, you'd prepare to move out, then probably yet. I would suggest you file a small claims action for damages.

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Answered on 7/29/10, 6:46 pm


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