Legal Question in Real Estate Law in Virginia

Mortgage Company reneges on Pre-Approval

I received pre-approval for a mortgage. I found a condominium, the purchase contract was accepted, I got a home inspection, and completed a hardship withdrawal from my 401K; all based on the pre-approval. I remained in touch with my lender on a daily basis; the seller's agent also contacted the mortgage company to ensure that I was approved. Always an affirmative answer. Now I am told that I have been denied funding. Do I have recourse?


Asked on 11/09/01, 9:16 am

1 Answer from Attorneys
Bruce Marshall Durrette, Irvin & Bradshaw, P.L.C.

Re: Mortgage Company reneges on Pre-Approval

The answer largely depends on 2 things: 1) teh language contained in the written loan approval, and 2) the reason the lender gave for ultimately refusing to loan to you. As there is not sufficiet information supplied about either of these it's hard to speculate further.

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Answered on 11/09/01, 9:42 am


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