Legal Question in Legal Ethics in Virginia

Home Loan from Countrywide

After sending the Loan commitment Letter (from Countrywide) to the Listing Agent for sending the Notice of Removal of Financing Contingency to seller - countrywide/loan officer backed out - just 2 workingdays prior to closing. The Countrywide Loan officer knows the situation day one and also knows that we were working with another bank. Earlier she gave us counter offer to come to countrywide. We were looking for 95% loan and she said she got it approved with underwriter with exception - everything is okay - she gave loan comitment letter etc. Seller has depositedthe check given earlier after hearing about the removal of financial Contingency. I changed my lease by paying etc because of closing and now its a big mess - countrywide wants 10% down payment or they want to increase the rate and instead of 80/15 they want to do 95 with high rate and pmi - its a fraud case - causing lot of pain and trauma to me & my family.


Asked on 11/11/07, 1:47 pm

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

Re: Home Loan from Countrywide

Unless there was a material breach of a contract between you and Countrywide,

attributable to the latter, I believe that you are without a remedy for the company's failure to carry through with the loan that had been promised you. (The loan commitment letter would be unlikely to qualify as such a contract.)

You might, however, wish to explore with an attorney as to whether the remedy known as promissory estoppel might possibly be applicable to your situation, considering your apparent reliance on the company's written promise and the subsequent detriment which you apparently incurred as a result of that reliance.

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Answered on 11/11/07, 7:32 pm


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