Is this legal?
I recently closed on my house on April 24, 2020. I got a call today from my lender saying that my loan had been rejected because my partner and I make too much money together for the specific loan despite already signing and closing. They want to drop my co-applicant and only have me on the loan to fix the issue because alone I make under the limit for the loan. They told me my only other option would be to pay $10,000 to the loan company since I was technically denied from the loan and once that is paid my original loan terms would stand. Is it legal for my lender to change the loan 30 days after we signed and closed on it? I signed AND moved into the house on April 24, 2020 and today is May 27, 2020. by taylorbr14437 from Canon City, Colorado. May 27th 2020
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
The quick answer is they CAN NOT simply go back and un-close a closed mortgage loan. It is their mistake to approve a loan that technically did not meet guidelines. You have the loan as it is. There is nothing they can really do. This creates a huge financial problem for them, as they have an unsellable loan. This is not your problem. While rare, it does happen. It is the cost of being a lender. They will need to sell the loan on the scratch and dent market, and take the loss. If they get nasty with you, do not hesitate, get legal help ASAP, but what they are asking is not right. Good luck.
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