Is there a legal issue here? HELP!

[amax41]

What is the name of your state? Florida

I started application for a mortgage while we were looking at places to buy. I recieved a preapproval letter from one company (name can be supplied upon request) that well more than covered the amount and has not expeired as of yet.

We found a place, they require a small down, and I contacted the agent to finish this -

he sent me everything I needed to sign as far as the request stuff for employment verification, etc. and the GFE. I sent him the standard "financials packet" aka pay check stubs etc. that they needed. Next up was appriasal and title search and done.

ok fine -

now what happens is he goes on a leave of absense.... and the new guy seems to start from the beginning while being past the middle -

on the GFE - 6.5% fixed 30yr bring 4600 to the closing.

now this guy says - nope - you need 5% down plus there is this judgement that you'll have to pay off (the judgement is another litigation from a job my wife had for a bill from a supplier to the company she used to work for....long and short the company dodged the bill and just because she was the bookkeeper the supplier sued her...and won...we are fighting it but we aren't anywhere close to done)

so now aside from that the rate is up over 8%....


My question - bait and switch? it's not like we are bad people or anything I have a stellar mortage payment history.... is there something I'm missing? do I have a legal right to press them against the wall and honor the intent and spirit of that preapproval and GFE?


need some help fast....I can feel from their emails that they are trying to wiggle out of a sticky situation.

 

[moburkes]

Nope, not bait and switch. The market has changed since you started. And, since you didn't get locked in previously, the interest rates have changed. Many lenders will require you to pay off certain bills before they loan you money.

 

[amax41]

Nope, not bait and switch. The market has changed since you started. And, since you didn't get locked in previously, the interest rates have changed. Many lenders will require you to pay off certain bills before they loan you money.

define "locked in" what didn't transpire?

also I'm reading the contract...I'm past the recision period...... how hard to get my $$$ back?

 

[moburkes]

Sometimes you can pay a lender to lock in your interest rate. A preapproval really means nothing, by the way. I've gotten preapproval letters from credit card companies, although I was in bankruptcy. I've also gotten preapproval letter for 2nd mortgages, although I already have one.

What recission period? The one before the loan funds? What money?

 

[HUD-1]

The pre-approval and the GFE do not legally bind the lender to provide financing. They are estimates subject to underwriting and verification. What rate will other lenders offer you? Is the 8% rate due to the credit issues?