lieing on app., being denied, sellers want to sue...

What is the name of your state? Texas

I am the buyer, got preapproved, found a house. We were suppose to close a month ago....I have already given my 30 day notice at my rental property. I found out 4 days before move out date that we were denied the loan. The loan officer did not even turn our paper work into the bank until 2 days AFTER we were supposed to origionally close. (06/16/03) They forged some documents(our signatures), lied repetedly.I requested the file, the loan officer would not give it to me. I was told by the loan officer to "make" 1099 forms for my self employed husband. So, I did. The bank decides to pull tax records, they dont match, we are denied the loan. The sellers want to sue the mortgage company. I am worried I will be arrested in the end for lieing on application. Or sued by the sellers.

[HomeGuru]

Originally posted by jseidel
What is the name of your state? Texas

I am the buyer, got preapproved, found a house. We were suppose to close a month ago....I have already given my 30 day notice at my rental property. I found out 4 days before move out date that we were denied the loan. The loan officer did not even turn our paper work into the bank until 2 days AFTER we were supposed to origionally close. (06/16/03) They forged some documents(our signatures), lied repetedly.I requested the file, the loan officer would not give it to me. I was told by the loan officer to "make" 1099 forms for my self employed husband. So, I did. The bank decides to pull tax records, they dont match, we are denied the loan. The sellers want to sue the mortgage company. I am worried I will be arrested in the end for lieing on application. Or sued by the sellers.

**A: you should be worried. Look at the forms that you signed and see if one of them is IRS Form 4506.