Signed Docs

[barbieconner]

What is the name of your state?AZ
We are in the process of purchasing a new home. Our lender had dropped the ball on numerous occasions to where we have missed our close of escrow date twice. They required 2 appraisals on the property and both appraised well above what was needed. The problem is now, we signed the closing documents on the 15th, they sent funds to the Title company on the 16th along with the original signed deed, however, after all this they noticed that on one of the appraisers reports he said the property is rural and they do not do rural loans. So after telling us on the 16th that they could not fund this property they called back a couple hours later saying they would override the underwriter to fund. Now almost a week later nothing has happened, every time we call they said they are trying to get one of the appraisers to change his view on the property being rural. In the mean time I took my kids out of school as of the 16th and we were supposed to be out of the home we sold on the 17th.
Is this legal?

[seniorjudge]

Q: Is this legal?

A: Yes, unfortunately it is. This type of behavior is characteristic of many lenders; they are playing you to try to get a higher interest rate.

No real estate deal is done until all the documents are signed, sealed, and delivered AND, most importantly, the check clears.

[HomeGuru]

Amen and go in peace****************************..

[Samm1970]

They signed the note and mortgage. Isn't that binding? Isn't it the lenders problem at this point? I've been orginating mortgages for 13 years and that's been my understanding. Does it make a difference in an escrow state, since I'm in a state that table funds?

Maybe I work for the only reputable lender. We would never do this. Our position would be, the docs are signed. It's our problem we have an issue with the appraisal.

Which by the way, I've never heard of a lender not doing "rural" loans. I can see if the property is zoned agricultural, rather than residential but rural?

Thanks!!

[seniorjudge]

No real estate deal is done until all the documents are signed, sealed, and delivered AND, most importantly, the check clears.

There was no delivery.

[Samm1970]

Thanks your honor. I really didn't know that. In my state we table fund so delivery occurs immediately. I guess all this means is we make darn sure our ducks are in a row before sending out the closing docs. Our company has a policy that we cannot satisfy conditions during the rescisson period. They tell us it's because of the law. That's probably just the most effective answer and obviously the best way to do business.

I've got another question on behalf of the poster then, can they rescind the loan at this point even though the rescisson period is over?

[Samm1970]

Garcias, su juez. I really didn't know that. In my state we table fund so delivery occurs immediately. I guess all this means is we make darn sure our ducks are in a row before sending out the closing docs. Our company has a policy that we cannot satisfy conditions during the rescisson period. They tell us it's because of the law. That's probably just the most effective answer and obviously the best way to do business.

I've got another question on behalf of the poster then, can they rescind the loan at this point even though the rescisson period is over?