Legal Question in Banking Law in Virginia

My wife and I had intitiated the mortgage process to purchase a house in Virginia. We were intially told how much money we would need to complete the process. However, when the loan processor contacted us we were informed that we would need three times that amount. When we realized that there was no way that we could accumulate that amount and the loan was not feasible, I informed our processor that we did not wish to pursue our loan and explained that we could not raise the required amount. Our processor did not stop the process and submitted the loan anyways. He did not contact us to inform us that he intended on submitting the loan. He called me several days later to inform me that we would be receiving our adverse loan report. When questioned on what was adverse about the report he stated that the loan was denied. He was not authroized to submit the loan request but did anyways. So far, with the excepiton of a branch assistant manager, the insitution has not been supportive in our getting this issue resolved. My question is "Can a lending/banking insitution legally submit a loan request after we informed that that we did not wish to pursue the loan?" What legal options can my wife and I employ to make ensure that the situation is addressed properly and in a timely manner?


Asked on 10/27/09, 8:38 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

If you can prove that you've been significantly damaged as a result of this unauthorized loan submission, you may want to sue the financial institution involved along with its loan processor(assuming an appropriate settlement cannot be reached).

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Answered on 11/01/09, 11:03 am


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