Mortgage lender backed out right before close

[gstringer]

What is the name of your state?Tennessee


My husband and I are in the process of buying a house. The lender had approved the loan and sent it to the title company only to back out 1 day before closing. We have been getting the runaround from the lender. They say the documents were sent to the wrong department, therfore they culd not finish the process. We were due to sign on March 29th we are now into the 2nd week in April. We have spent so much money on the appraisal and even having utilities switched to the new house. The lending company says we will know their decision today....I dont know what decision that is the have prior said we were approved. Can they just all of a sudden deny us? Can we recover any of the money we are out?

[huk]

As long as the closing has not taken place, that lender can do anything they D**n well please. They can and do, everyday