Lenders

What is the name of your state? CALIF
Why are Lenders not binded once load documents are signed?

I have read some other post in here and is the same thing. Lenders changing there mind after loan documents are signed. Seems to me that both sides should honor the signed agreement. Lenders should be required to have all problems resolved prior to the buyers signing of loan documents. AS BUYERS do we have any rights once the loan papers are signed?

[HomeGuru]

[quote]Originally posted by jacinto
[b]What is the name of your state? CALIF
Why are Lenders not binded once load documents are signed?

I have read some other post in here and is the same thing. Lenders changing there mind after loan documents are signed. Seems to me that both sides should honor the signed agreement. Lenders should be required to have all problems resolved prior to the buyers signing of loan documents. AS BUYERS do we have any rights once the loan papers are signed?

**A: do you have a specifc example of a lender that did not close a loan after issuing their final committment letter? If so, please post. If not, your post is too general in nature.
I have worked on various similar cases and on every single one, either the borrowers financial status/credit history had changed or the real property changed.

I have what happened to us. We signed loan documents and the lender then reviewed the appraisal, and has determined the value to be 25,000 less. Why would this not be corrected or loan stopped prior To the signing?

I think both sides should resolve this type of issues prior to signing.

Also see my other post about last minute problems.

Thanks

[HomeGuru]

[quote]Originally posted by jacinto
[b]I have what happened to us. We signed loan documents and the lender then reviewed the appraisal, and has determined the value to be 25,000 less. Why would this not be corrected or loan stopped prior To the signing?

**A: it should have been but in your case, you are a victim of the current market conditions. Because the interest rates are so low, the lenders, appraisers etc. are all backlogged and overworked. The reviewer most likely just got to your file.
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I think both sides should resolve this type of issues prior to signing.

Also see my other post about last minute problems.

Thanks

**A: next time stick to one thread rather than posting new threads concerning the same subject matter.

Sorry for the multiple thread and thanks for the replies.

I still don't understand why lenders can change the rules after loan documents are signed? Being busy is no excuse or is it?

As a buyer, once i've signed i would be stuck with the terms. Why are lenders not held to the same rules?

I stand to lose at least $2000 on this deal. If my broker or real estate agent has failed here jobs, could i sue them for damages?

I was led to think the house was ours by both of them causing me lose money that I would not have spent if I knew there were problems in the funding?

[HomeGuru]

[quote]Originally posted by jacinto
[b]Sorry for the multiple thread and thanks for the replies.

I still don't understand why lenders can change the rules after loan documents are signed? Being busy is no excuse or is it?

As a buyer, once i've signed i would be stuck with the terms. Why are lenders not held to the same rules?

I stand to lose at least $2000 on this deal. If my broker or real estate agent has failed here jobs, could i sue them for damages?

I was led to think the house was ours by both of them causing me lose money that I would not have spent if I knew there were problems in the funding?

**A: post to your initial thread.

The California purchase contract has an area in which the buyer elects to place a "Loan Contingency" and "Appraisal Contingency" on his offer to purchase. These contingencies in effect state that the buyer is not obiligated to complete the transaction if the home does not appraise at the sales price or the buyer can not obtain financing.

If the loan contingency was removed or was not part of the initial offer, then being unable to obtain financing would not release you from your contractual obligation. However, if you performed in your duties - had loan approval, signed docs, etc. and the home did not appraise for the sales price - then you can either re-negotiate the sales price with your seller, pay the difference in cash, or walk away with penalty. If you performed all your duties you are usually entitled to your earnest money deposit back.

When a mortgage loan is approved, there are prior to doc conditions (PTD) and prior to funding conditions (PTF). PTD's must be satisfied prior to the lending drawing loan documents and allowing you to sign them. PTF's are conditions that generally come back with the signed loan docs. Nevertheless, all PTFs must be completed before the loan funds. It sounds to me like the appraisal review was a prior to funding condition, which is why the loan blew up at the last minute.

It doesn't sound like your lender was very clear in explaining the loan process to you so you would understand what was actually taking place (which, by the way, is my major pet peeve!)