- August 11, 2011 at 6:30 am #229010Dewayne EberhartMember
Process has been going smoothly.* We lifted the inspection contingency and the loan was approved.* Per the advice on this forum, we refused to lift the loan contingency until we have confirmation that the loan will be funded and the transcation will close.* We double checked with our loan agent and he gave the green light to lift the last contingency on the due date (over the weekend – Sat).
Today (Weds), the underwriter (MetLife) told the loan consultant that our loan was denied because of “property issues.” The house was purchased 3 months ago by a group of investors, flipped it and is now being sold for a lot more.* There’s also a lien on the property that the bank is not entirely comfortable with it.* Bank thinks it’s too risky.
Will we loose our earnest money over this?? Obliviously, this is not our fault.* Our loan was approved based on OUR financial’s criteria.* Financing decline due to property issues (flip house/renovation proof, messy lien) is not our fault.
We’re definetely frustrated and beating ourselves for lifting the loan contigency.* Should we hire a lawyer?
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