Signed Loan Docs, but Lender won't Fund

[melroese]

What is the name of your state? California

My husband and I signed our loan docs on March 23, but then the lender decided that our appraisal looked too high. It's been 2 weeks since we signed and our loan still hasn't funded. Is this possible? Can the lender go back and deny us our mortgage for our refinance after our loan documents have been signed?

Our loan officer and escrow officer have never experienced this before. They thought that signing loan documents and "closing escrow" was the final step in the process.

Can you shed any light on our extremely frustrating situation?

[huk]

Im a loan officer and this is the 1st time I ever heard that one. I can tell you this though, I think most banks have a secret loophole dept. In the final analysis their going to do whatever they think they can get away with, and getting a straight answer out of a bank is like pulling teeth. Im no lawyer, but it kinda sounds like you got yourself a lawsuit though.

[granny0725]

I live in NC and have the same scenario. My husband and I closed on two separate mortgage packages on 4/23. They were to fund on 5/2. On 4/25 we were contacted by the loan office who said that "some" of the documents were not signed correctly and we needed to "resign" so the loan would fund on time. We did this on 4/25 in our home. On 5/2 (the day the loan was to fund) we again were told that there were "problems" and we needed to "close" again. We did this on 5/4 and were told the loans would fund immediately, we would have our funds by 5/6 or 5/7 at the latest. To date we still do not have our funding. According to the loan office they have discovered another "problem" that they are trying to fix. My concern is: we have signed 4 complete loan packages and 2 partial packages (they sent a signing agent to our home) and this loan has not funded yet,AND they however changed the insurance on our homes to list them as the loss payee/mortgagee effective 4/29. Is any of this legal????