Legal Question in Real Estate Law in New Jersey
Backing out of a loan.
Can a bank back out of a loan that they say you were qualified to get 2 weeks before closing after they tell you to get the house your staying in inspected by the township and everybody else and all loans paper signed.Then they call your real estate broker and tell her everything is good to go .After we take the contengencies off our house to be sold,the loan officer leaves a message on the cell phone 2 weeks before closing and say that my credit score dropped and he cant do nothing for us.He told me twice that the underwriter said that we were o.k. and to go forward with everything.My relastate broker said with out the contengency we were obligated to sell our house.If thats true ,then we will have know where to go.Can the bank do that and will we loose our house?We made know purchases what so ever and still have the same jobs as when we filled out the application. Our credit score did not change.We applied for another loan with another bank and our credit score came back the same as it was with the first bank that said it dropped.The new loan that their offering is way out of our budget but we may be forced to take now or loose our house and have know where to live.How long is a credit score once checked good for?
1 Answer from Attorneys
Re: Backing out of a loan.
If you have a written loan commitment from the lender, you have a compelling case for damages against them regardless of what happens next. Check to see whether that document exists and what is says. Whether you need to sell your current house is an open question and you should discuss the matter with a lawyer and not use the opinion of the real estate broker without a legal opinion. Keep in mind that the broker only makes a commission if there is a sale.
My firm handles matters of this type. If I can be of further help to you, call or email.
See also: http://info.corbettlaw.net/lawguru.htm
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