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pbr3232 · Mar 6, 2009, 03:03 PM

We applied to a major bank for refinancing on a duplex which is an investment property. We spoke to a senior mortgage representative on the telephone and the loan went to the underwriters and was approved. The paper work came back as a conventional loan with the idea it was owner occupied. I called the bank and the representative is no longer working for them.They have to review the taped conversation I had with him to see what was said. They haven't got back to me yet. I am 100% sure I made it clear it wasn't owner occupied when the loan was approved. Can the bank cancel the loan if the loan officer or someone made a mistake and it was no fault of my own when it already went to the underwriters or if I am correct would they have continue with the loan as is.

Thanks

Peter

excon · Mar 7, 2009, 08:49 AM

Originally Posted by pbr3232

or if I am correct would they have continue with the loan as is

Hello Peter:

Please cite which law makes the bank continue after a mistake is made. Nahhh. You're not going to be able to do that, because there isn't any law.

It the difference would just have been changing the wording "owner occupied" to "non owner occupied", then you MIGHT have a case...

But, there's WAAAAAAY different terms for COMMERCIAL non owner occupied loans. And, I mean WAAAAAY different, from the down payment, to the interest rate, to the loan to value, to your creditworthiness, to your business background, and to many other terms.

So, no. You're going to have to start over.

Let me ask you this, Mr. Landlord, if your tenant mistakenly forgot to disclose a prior eviction, and you signed the lease before you found out, would YOU have to continue with the tenancy??

excon

pbr3232 · Mar 17, 2009, 07:31 AM

We applied to refinance a duplex. The duplex was not owner occupied. I made that fact very clear without any doubt. The refinancing was approved and underwritten. The documents came back as owner occupied. I called to be honest and clear that I stated it was not owner occupied when I spoke to the loan officer. The loan officer has since left and the bank is trying to review the tape. If in fact the error was the loan officers wouldn't the bank have to process the loan at the terms agreed to if it was no fault of my own. Once a loan is underwritten it is a contract I would assume.

Thanks

excon · Mar 17, 2009, 07:45 AM

Originally Posted by pbr3232

If in fact the error was the loan officers wouldn't the bank have to process the loan at the terms agreed to if it was no fault of my own. Once a loan is underwritten it is a contract I would assume.

Hello again, pbr:

I'm not going to look back, but I think I answered you before...

What I told you then, I believe, is that if a mistake was made in the application, then the bank is NOT obligated to continue. I cannot imagine why you would think they are.

Plus, you say that you're innocent here, but who chose to use an incompetent loan officer? Who signed the loan application stating that it was the truth??

So, why are you asking again, and why don't you believe me? Do you think I'm lying to you??

excon

pbr3232 · Mar 17, 2009, 09:41 AM

I was looking for a more intelligent answer.

Thanks

excon · Mar 17, 2009, 10:03 AM

Originally Posted by excon

Hello Peter:

Please cite which law makes the bank continue after a mistake is made. Nahhh. You're not going to be able to do that, because there isn't any law.

It the difference would just have been changing the wording "owner occupied" to "non owner occupied", then you MIGHT have a case.....

But, there's WAAAAAAY different terms for COMMERCIAL non owner occupied loans. And, I mean WAAAAAY different, from the down payment, to the interest rate, to the loan to value, to your creditworthiness, to your business background, and to many other terms.

So, no. You're going to have to start over.

Lemme ask you this, Mr. Landlord, if your tenant mistakenly forgot to disclose a prior eviction, and you signed the lease before you found out, would YOU have to continue with the tenancy????

excon

Hello again, pbr:

More intelligent than ^^^^ THAT?? Or what I just said??

Dude!

Having said all that, and you still believing the bank should honor the deal, is pretty UN intelligent, in my view.

But, who am I, other than a stranger who took the time to help you??

I changed my mind. You should hire a lawyer and sue the bank... Bwa, ha ha ha.

excon

ScottGem · Mar 17, 2009, 10:08 AM

Actually an agreement to underwrite is not a binding contract.

Fr_Chuck · Mar 17, 2009, 11:29 AM

A "pre approval" is nothing banks back out on them every day everywhere, there is no approval till it is final and signed.

twinkiedooter · Mar 18, 2009, 05:44 PM

Scott, Excon and Chuck are all correct. It's not a done deal until the fat lady sings or signs and the bank can and will back out if they want/can at anytime and you're stuck wondering who turned out the lights.

Banks are a business, not a charity and are run as such. I once worked for a banker who owned his own bank and was worth over $300m when I worked for him. All he was interested in was the bottom line each day and nothing else.