after closing

What is the name of your state? tennesse we live in tennessee, refinancing our home through a branch in nashville, but the home office is in california. we closed on house on wednesday, and had three days to rescind. we did not. the loan was to funded the following thursday by wire within the company's seven day fund waiting period. on the eighth day they called and said it would not fund due to a drive by of the home questioning the appraised value. is this legal? breach of contract after signing all closing documents, the company stated all conditions were met and the loan will fund. what is my recourse?

[HomeGuru]

[quote]Originally posted by mumpowertoo
[b]What is the name of your state? tennesse we live in tennessee, refinancing our home through a branch in nashville, but the home office is in california. we closed on house on wednesday, and had three days to rescind. we did not. the loan was to funded the following thursday by wire within the company's seven day fund waiting period. on the eighth day they called and said it would not fund due to a drive by of the home questioning the appraised value. is this legal? breach of contract after signing all closing documents, the company stated all conditions were met and the loan will fund. what is my recourse?

**A: you most likely have no recourse. Even if your loan committment from the lender was not conditional with repect to the drive-by appraisal, the lender will find a legal reason to not fund.
Was there already a standard appraisal done or was this drive-by the appraisal? Lenders and appraisers are backlogged due to the low interest rates so maybe the appraiser was so behind the drive-by was completed after you had signed.
Another example of legal recission by the lender to funding: the lender can and sometimes does an updated credit report days prior to funding and if your credit score/status changed, they can use that as a reason. Credit score/status could mean one late payment, purchase of high ticket item an a credit card, drop in FICO score, numerous inquiries etc.

in response to your question, an actual appraisal has been done, and a drive by was requested after all conditions were met. the tennessee department of finance commission is questioning their licensing ability in the state of tennessee to renew. in addition, our insurance coverage changed by them as the new mortgage holder, is there any liability or recourse for loss of payments to appraisal, title company, and lost time, as well?

[HomeGuru]

[quote]Originally posted by mumpowertoo
[b]in response to your question, an actual appraisal has been done, and a drive by was requested after all conditions were met.

**A: ok, then the drive-by was a condition to fund.
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the tennessee department of finance commission is questioning their licensing ability in the state of tennessee to renew.

**A: what does that mean "to renew"?
Renew what? Their mortgage brokerage/financial institution license?
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in addition, our insurance coverage changed by them as the new mortgage holder, is there any liability or recourse for loss of payments to appraisal, title company, and lost time, as well?

**A: no.

i received a letter from the mortgage company five days after funding supposed to take place, nine day after the rescission period and it stated it was denied because of the terms and conditions i requested; nothing with the insufficient value of the home or credit. what is the terms and conditions i requested when i signed their closing papers? in addition, the tennessee finance commission is investigating for legal recourse to force to fund. how am i not having a legal standpoint on this? the driveby was not listed as a condition, the denial letter did not state that being the reason.

[HomeGuru]

[quote]Originally posted by mumpowertoo
[b]i received a letter from the mortgage company five days after funding supposed to take place, nine day after the rescission period and it stated it was denied because of the terms and conditions i requested; nothing with the insufficient value of the home or credit. what is the terms and conditions i requested when i signed their closing papers?

**A: that means the loan to value, ie. say 95% financing, interest rate, loan term etc.
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in addition, the tennessee finance commission is investigating for legal recourse to force to fund.

**A: ok, keep us posted. These cases may take 6-12 months to resolve. So don't hold your breath waiting. Seek other financing sources while the interest rates are still low. Talk to a mortgage broker.
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how am i not having a legal standpoint on this? the driveby was not listed as a condition, the denial letter did not state that being the reason.

**A: I am not privy to review all your documentation. Hire an attorney if you need to.

as in keeping all you posted, the federal regulation board has forced the funding of the loan under the violation of civil rights code. the company has within forty eight hours to fund the loan. if any particulars rise as such, the fdic and the deparment of finance commission is available to assist those who are getting breach of mortgage contracts.

[HomeGuru]

Ok, what was the Federal action based on ie. what reason did they give as a reason to force the lender to fund?