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Old 11-18-2017, 12:48 PM
 
1 posts, read 1,070 times
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I applied for a mortgage in August and received a pre-qualification and loan commitment. However, my mortgage banker inserted the incorrect income taxes in the application (we always told her that the income taxes were "x" and the appraisal conducted by the bank also said "x"). When the bank received the title, my mortgage banker finally realized that the income taxes were incorrect and that we no longer qualified for the mortgage. However, instead of providing us a decline letter, she provided us with a notice of counter offer. The notice of counter offer was generated because she still had not updated the income taxes. After 4 week of fighting with the bank, to have them review the information in the case, they finally provided us with the decline letter. However, the sellers do not want to return the full down payment because a loan commitment had already been provided plus a counter offer. What should we do? The sellers received a decline letter and I feel that that should suffice.
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Old 11-18-2017, 01:18 PM
 
Location: Phoenix, AZ
1,108 posts, read 416,985 times
Reputation: 2601
Quote:
Originally Posted by d285 View Post
However, the sellers do not want to return the full down payment because a loan commitment had already been provided plus a counter offer. What should we do? The sellers received a decline letter and I feel that that should suffice.
Sorry, but the answer depends on the EXACT wording of the mortgage contingency provision of your purchase contract.


Quote it here word for word and you might get an answer.


Otherwise you will need to have a lawyer review it.
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Old 01-06-2018, 08:56 PM
 
1,279 posts, read 1,127,388 times
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Usually the Purchase and Sale agreement has a financing contingency. Hopefully your Realtor checked the box for you. If financing falls through, which in this case it did, then you are let out of the contract and get your earnest money back along with the DP.
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Old 01-11-2018, 07:26 AM
 
Location: MID ATLANTIC
7,519 posts, read 17,286,639 times
Reputation: 7945
Don't you mean real estate taxes?

Anyway, if the lender sees another way for the transaction to move forward, they will make a counter-offer. You can refuse and an Adverse Action (denial) letter will be issued. That said, study your options carefully- rates have crept up and continue to do do. You may not be able to duplicate the original lock terms, nor the counter-offer terms.
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Old 01-11-2018, 08:10 AM
 
12,357 posts, read 8,942,287 times
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Get a lawyer ASAP!
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Old 01-11-2018, 05:28 PM
 
Location: New York
2,251 posts, read 4,106,892 times
Reputation: 1606
Quote:
Originally Posted by d285 View Post
I applied for a mortgage in August and received a pre-qualification and loan commitment. However, my mortgage banker inserted the incorrect income taxes in the application (we always told her that the income taxes were "x" and the appraisal conducted by the bank also said "x"). When the bank received the title, my mortgage banker finally realized that the income taxes were incorrect and that we no longer qualified for the mortgage. However, instead of providing us a decline letter, she provided us with a notice of counter offer. The notice of counter offer was generated because she still had not updated the income taxes. After 4 week of fighting with the bank, to have them review the information in the case, they finally provided us with the decline letter. However, the sellers do not want to return the full down payment because a loan commitment had already been provided plus a counter offer. What should we do? The sellers received a decline letter and I feel that that should suffice.
The "Down Payment" is normally paid at closing. I think you mean "Ernest Money", that was paid for the sellers to take the home off the market. If so - the ball is in their court if they are going to refund you.

If the payment isn't too high, and the save the deal. Plus your debt ratios are near 43% have you considered an FHA loan, using a cosigner with additional/higher income?

My $00.02
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