Purchase back out of agreement - Posted by Greg
Posted by Greg on August 13, 2003 at 23:58:51:
purchase claims denial of loan, but refuse to provide written reason for denial. Contract was for 80% loan at prevailing rates. Line for interest rate cap was marked not applicable. This was an investment loan based on stated income. We provided buyer with a company that could give them an investment loan at 8.5%. Buyer stated the rate was to high and they would not apply for the loan. instead they offered to buy the house on land contract. They did not have 20% of the purchase price to put into the land contract they only had 7.5% of the purchase price. Before we accepted the contract we required the buyer to be preapproved, Mortgage company provide a preapproval letter and two weeks later told us that the olny thing they were waiting on was the appraisal. The house appraised at the contract price. A month later, two days before closing, Mortage company turned down the loan. (we stil do not know why). We did find another lender for the buyer. what remedies do we have. Is the mortgage company liable for any damages? Buyers are asking for their earnest mony back. Are they entitled to get it back?