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Old 05-21-2015, 06:10 AM
 
4,914 posts, read 5,524,547 times
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So I entered into contract for a coop and as required by both my attorney and the sellers attorney, submitted a down payment of the purchase price which was $7k. After being pre approved for a 15yr @ 3.7%, my mortgage was denied by the lender due to my tax deductions raising my debt to income ratio. I notified my attorney and was told that I would need a denial letter from the lender in order to get out of contract and have my deposit refunded which I submitted to them 2 days after being denied. Its now been 2 months and my calls and emails have gone unanswered or returned.

This was my first attempt at purchasing and was pretty ignorant to the entire process and I now need some advice on what to do next in order to collect my deposit of $7k.
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Old 05-21-2015, 06:18 AM
 
2,600 posts, read 5,449,178 times
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My Loan was Denied - What Fees Can I Recover?

By Dan Melson on October 26, 2013 8:00 AM

My Loan was Denied - What Fees Can I Recover? - Searchlight Crusade
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Old 05-21-2015, 06:19 AM
 
Location: MID ATLANTIC
7,598 posts, read 17,623,584 times
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What does your attorney say? What did your contract say? Did you remove your financing contingency to keep the seller from putting the property back on the market? The advice from everyone here should be contact your attorney, and now.
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Old 05-21-2015, 07:56 AM
 
Location: Somewhere in USA
537 posts, read 453,014 times
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If your attorney is asking for the letter, he/she is correct. The denial letter from the lender will give you the power to take every penny back. Your attorney could also do the denial letter request on your behalf and the lender should write you one. Keep all paperwork that you had with the contract and not one piece should be missing.

one question, how did you get denied? By verbal communication? email? any forms of denial other than verbal can be used as evidence that it was not you who denied the contract but the lender.

your attorney should work on your behalf...
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Old 05-21-2015, 08:37 AM
 
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Quote:
Originally Posted by ameridreamNoT View Post
If your attorney is asking for the letter, he/she is correct. The denial letter from the lender will give you the power to take every penny back. Your attorney could also do the denial letter request on your behalf and the lender should write you one. Keep all paperwork that you had with the contract and not one piece should be missing.

one question, how did you get denied? By verbal communication? email? any forms of denial other than verbal can be used as evidence that it was not you who denied the contract but the lender.

your attorney should work on your behalf...
It was a verbal denial after the lender punched in the numbers, followed up with a written denial with a detailed explanation.

I have to go home and look over the contract to see what it stipulates regarding a refund of the deposit in the even of a denial. My lawyer made it seem so simple in the beginning and told me all I would need is a denial letter but now it seems as if they're giving me the runaround. I call and either she isn't in and she would get back to me, or I email and get no response.
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Old 05-21-2015, 09:41 AM
 
Location: Phoenix, AZ > Raleigh, NC
14,301 posts, read 17,505,128 times
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Just out of plain curiousity, how did you locate your attorney and decide to hire him/her?

You're far more patient than you should be. I'd be sitting in the waiting room of their office. If after one hour I still had not seen that attorney in person, or received an email or call in my cell, I'd be looking up the Bar Association phone number on my smartphone, making sure the receptionist knew I was gonna hit that number NOW.

Keep a copy if every single email you have with this attorney. Keep records of dates and times of phone calls.

Suggestion: Next offer, find a new attorney!
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Old 05-21-2015, 10:40 AM
 
4,543 posts, read 11,547,065 times
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Quote:
Originally Posted by louie0406 View Post
So I entered into contract for a coop and as required by both my attorney and the sellers attorney, submitted a down payment of the purchase price which was $7k. After being pre approved for a 15yr @ 3.7%, my mortgage was denied by the lender due to my tax deductions raising my debt to income ratio. I notified my attorney and was told that I would need a denial letter from the lender in order to get out of contract and have my deposit refunded which I submitted to them 2 days after being denied. Its now been 2 months and my calls and emails have gone unanswered or returned.

This was my first attempt at purchasing and was pretty ignorant to the entire process and I now need some advice on what to do next in order to collect my deposit of $7k.
Would you qualify with a 20 or 30 year loan?
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Old 05-21-2015, 11:27 AM
 
Location: Phoenix, AZ > Raleigh, NC
14,301 posts, read 17,505,128 times
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Quote:
Originally Posted by TimtheGuy View Post
Would you qualify with a 20 or 30 year loan?
You know what - THAT'S A GREAT QUESTION. I missed the 15 year loan issue totally. Good call. (can't rep you again, Tim)

I'm hoping one of our mortgage experts comes on and explains this to the rest of us. I'm genuinely curious.
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Old 05-21-2015, 12:11 PM
 
4,914 posts, read 5,524,547 times
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Quote:
Originally Posted by TimtheGuy View Post
Would you qualify with a 20 or 30 year loan?
Yes but at a MUCH higher interest rate that I was not interested in paying. I only considered buying the coop due to its affordable price and being pre approved at a decent rate.
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Old 05-21-2015, 03:12 PM
 
50 posts, read 41,188 times
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Yeah but your payment is much higher for the 15 year loan. The rate should not be MUCH higher. Take the 30 and do a 15 year pay plan. I agree you seem way too casual about the $7k. Call the Banking Commission.
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