Legal Question in Real Estate Law in New York
Broker Promise
I am from NY however I am purchasing a home through a Texas broker. I have poor credit and other issues. The broker pre-approved me after pulling my credit report. Before making a purchase offer I verified with the broker again who said make the offer, you got the loan. 2 months later, and after a purchase agreement, paying a small downpayment and appraisal fees I still do not have the money. The seller of the home made an offer on another home and are waiting for me so they can close.What are my options if I do not get the loan through the broker? He made me a guarentee or I never would have gone this far. Does he have any legal obligation? I have all correspondance which clerly shows he said no problem, I'd get the loan. They even told the relator no worries. What are my legal options?
2 Answers from Attorneys
Re: Broker Promise
He who trades his horse for a promise deserves to walk.
Unfortunately, a pre-approval is useless...it is "pre" , not "approval".
You may lose your down payment if the deal falls through. Why not ask your attorney in NY who represents you what your options are. That person would know best.
Good Luck
RRG
Re: Broker Promise
Before making any conclusions, I would need to take a look at the mortgage commitment that was provided to you. That will dictate how firm the commitment of the mortgage broker is to financing your purchase. Normally, a NY commitment would have language that would cover the broker in the event circumstances change and they wish to cancel the loan. I am not sure what the Texas broker would have had in there.
Feel free to contact me on Monday to discuss this further. Again, I will need to see your commitment to review your options.
Kind regards,
Peter Moulinos
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