Comments on: When can a home loan lender back out of a loan?

By: AnOrdinaryGuy

AnOrdinaryGuy — Sat, 06 Mar 2010 16:16:55 +0000

I’m not sure if they can or not. At the very least, their excuse ought to be in their contract with you. If it’s not, they might be stuck. The first thing you should do is read the forms they gave you when you signed up, and the next thing you should do is to contact the state agency that regulates mortgage lenders to find out your rights.

By: Jason

Jason — Sat, 06 Mar 2010 15:53:00 +0000

Recently, Lenders have done away with 2/28 and 3/27 mortgages. Most changed wednesday. They are now doing 5/25’s If your loan was already in the pipeline, It would remain the same or switch to a 5/25 for free. Go to your lenders office. Ask for the Branch Manager. If your using some large company in another state, Start Calling now. Ask for a manager. Don’t talk to your loan officer first. Blind side them. This will tilt the table in your direction. Your loan should be in the pipeline and already approved if your going to close on Monday. If it’s not in the pipeline, your probably screwed.

By: Mary B

Mary B — Sat, 06 Mar 2010 15:06:55 +0000

Yes. What has happened is that the loan product that they were selling you was backed by a particular investor (which gave them the ability to offer it and fund it), and apparently the investor has either stopped doing business with the bank, or the investor has dropped the loan program.

My guess, is that they lost the investor, because when a loan program is being discontinued, I have never seen a situation where a prior notice is not given to give loans in the pipeline a chance to close. I would call and ask to speak to the Operations Manager that supervises underwriting (NOT your loan officer) and demand for a thorough and complete explanation.

They should be offering you an alternative loan and push it through…like yesterday.

PS: If my post sounds confusing…think of it this way…lets say you had a car dealership that sold nissans, toyotas, and bmw’s. If the company that sold them nissans decides not to make nissans anymore, then they can’t sell them, OR if the maker of nissans decides not to do business with the dealership any longer.

I wish you luck…what a horrible mess!