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I'm under contract for a condo located in a complex which is not yet complete.
Went through the entire process ad-nauseum (inspection, appraisal, credit rescoring, etc etc etc) only to ultimately have my loan declined a week prior to closing because the complex is <90% complete. Believe it or not, the seller's realtor made my realtor aware of this several weeks ago...we checked with the lender who assured us this was a non-issue, only to ultimately get declined because of it!
My agent is going back to the seller to request an extension...but they were rather adamant about closing on this particular date. Any opinions/advice out there would be appreciated.
Keep shopping lenders- you should be able to find someone who finds 70% completion acceptable. Do you have a financing clause in your sales contract ? One that will let you off the hook without losing your deposit if you can't get a mortgage
Keep shopping lenders- you should be able to find someone who finds 70% completion acceptable. Do you have a financing clause in your sales contract ? One that will let you off the hook without losing your deposit if you can't get a mortgage
Are you referring to the mortgage contingency? If so--yes, it goes until next week. If not, excuse my ignorance (first-time buyer).
Would the lender face any liability here? My realtor and I asked them SPECIFICALLY whether or not the <90% completion would be an issue several weeks ago (we have everything documented). Supposedly they asked a 'junior underwriter' instead of taking it to someone who actually knew what they were talking about, thereby royally screwing me.
They made me do several rescores (spent nearly $800 in total), go through an appraisal, etc....when a simple 'sorry we cant finance something less than 90% complete' eliminated the possibility of a loan through them. Unbelievable.
I believe Connecticut law allows you 30 days to close from the contracted close date if you have a reasonable cause. Your realtor should know that. If you have an attorney, bring that up to them as well.
That would be perfect...but I don't believe this is the case.
Neither my realtor nor lender have brought this up, nor did a google search yield any information about this.
Would any realtors on the board be able to chime in?
Quote:
Originally Posted by GreenieSteve
I believe Connecticut law allows you 30 days to close from the contracted close date if you have a reasonable cause. Your realtor should know that. If you have an attorney, bring that up to them as well.
I hope it all works out for you. Moving is stressful enough (I know since I am desperate to move). Close to 90% should be good for a sale.
Thank you. I knew that making my first purchase would be challenging, but this has been a nightmare.
If I ultimately wind up losing the condo, I will go after the lender in one way or another. Even if all I can manage is a nuisance lawsuit and as many negative online reviews as possible, they will not be coming out of this unscathed.
PM me if interested in the name of the lender (mortgage broker). Will make the name public if they don't make things right in the end.
I'm not a lawyer so this is worth about 2 cents. I read your account and if you truly do have everything in writing you can probably bring suit, but I don't think you would win much. I think you could make a case if the new loan you received had a higher interest rate than the original loan, figure that out over 30 years, but ultimately it won't amount to much. If you lost a deposit due to this, you could also sue for that, but first I would try to get that deposit back without going to suit. That will be much less time consuming.
Additionally, I believe court docket currently for civil cases is going out for 3 years. Assuming you don't settle you will be waiting 3 years to see a judge. I would move on with my life, and give bad reviews to the lender thru website(s) and word of mouth. In the end that would probably cost them more money.
I also do not think you will find a lawyer to take your case.
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Good luck
