bank goes out of business (agent, mortgage, mortgage, sales)

[jabrondo18]

[SIZE=3]If a bank which issued a loan commitment goes out of business and the party issued the commitment can’t close their sales contract as a result, does that party have legal recourse against the bank?[/SIZE]

[Brandon Hoffman]

I don't know. That's really a question for an attorney but how would a bankrupt business have any money for you if you did seek recourse?

Coincidentally, I did lose a transaction this year when a lender went bankrupt (AHM). Fortunately the home sold a couple of weeks later a second time and closed with no problems.

[olecapt]

Originally Posted by jabrondo18

[SIZE=3]If a bank which issued a loan commitment goes out of business and the party issued the commitment can’t close their sales contract as a result, does that party have legal recourse against the bank?[/SIZE]

No.. There is a thread on the mortgage side that deals with when a bank is actually committed to making a loan. The answer is when it makes it.

[Eric Young]

Jabrondo, you've opened about 4 threads all related to this situation. Unfortunately, I don't think anyone here - even a NYS agent - is going to be able to give you a clear answer to any of your questions without actually reading the entire file itself.

The best advice you'll probably get is to contact a local agent or attorney (or both). Good luck.