Refinance Company Not Honoring Contract

[camel1971]

My question involves real estate located in the State of: Colorado

We closed on a refi 9 days ago. That is we both signed the closing documents and were told the loan would be funded at the beginning of this week. The day after closing, we got a request for more documents and were told Monday that those documents would be necessary for funding. Back in August, the company had requested my wife's income info, but as her job ended at the end of July (after we had started the loan process), I said she was no longer employed. I also stated that I have 3 sources of monthly income and shouldn't the total income be sufficient. A few days later I got an email stating that the underwriter had approved the loan pending title and appraisal. After this apparent assurance, we shelled out nearly $700 for the appraisal. I knew this was high, but wanted to get the loan closed. At this point, we had given all the necessary documents up until closing, yet the refi company is not funding the loan/cash out. What recourse do I have? Thank you.

[llworking]

My question involves real estate located in the State of: Colorado

We closed on a refi 9 days ago. That is we both signed the closing documents and were told the loan would be funded at the beginning of this week. The day after closing, we got a request for more documents and were told Monday that those documents would be necessary for funding. Back in August, the company had requested my wife's income info, but as her job ended at the end of July (after we had started the loan process), I said she was no longer employed. I also stated that I have 3 sources of monthly income and shouldn't the total income be sufficient. A few days later I got an email stating that the underwriter had approved the loan pending title and appraisal. After this apparent assurance, we shelled out nearly $700 for the appraisal. I knew this was high, but wanted to get the loan closed. At this point, we had given all the necessary documents up until closing, yet the refi company is not funding the loan/cash out. What recourse do I have? Thank you.

Who handled the closing? Was it a title company? If so, talk to them first. What is going on shouldn't be possible...assuming that you understand properly what is going on.

[camel1971]

The Settlement Agent is listed as a title company. I will contact them tomorrow.

[Zigner]

Are you SURE that the contract doesn't allow for this type of delay? It's quite possible that there was a final contingency for a verification of all prior information provided. You need to review the ENTIRE closing package to know this...

[llworking]

Are you SURE that the contract doesn't allow for this type of delay? It's quite possible that there was a final contingency for a verification of all prior information provided. You need to review the ENTIRE closing package to know this...

I agree, but usually if that is the case then the closing doesn't happen. It gets pushed back. I have never heard of a situation where all of the closing documents are signed and THEN the mortgage company refuses to fund.

[Zigner]

I agree, but usually if that is the case then the closing doesn't happen. It gets pushed back. I have never heard of a situation where all of the closing documents are signed and THEN the mortgage company refuses to fund.

I wouldn't argue with you on that...I was just throwing it out as a possibility

[pg1067]

We closed on a refi 9 days ago. That is we both signed the closing documents and were told the loan would be funded at the beginning of this week.

Were told by whom? Also, you signing documents is not the same thing as closing.

we got a request for more documents and were told Monday that those documents would be necessary for funding.

A request from whom? Told by whom?

Back in August, the company had requested my wife's income info

What company? The lender?

What recourse do I have?

Recourse for what? You either drop it or continue to wait. I'm guessing it is unlikely that you have any written document signed by the lender or anyone else that you could base a breach of contract lawsuit on, but neither can I rule out that possibility.

[camel1971]

I just reviewed it fairly carefully and didn't see any indication of a final contingency. Where would a clause like this be found?

[Zigner]

I just reviewed it fairly carefully and didn't see any indication of a final contingency. Where would a clause like this be found?

At the attorney's office...

[camel1971]

We closed on a refi 9 days ago. That is we both signed the closing documents and were told the loan would be funded at the beginning of this week....We were told by the notary who represented the title company.
We got a request for more documents (the day after signing the documents) and were told Monday that those documents would be necessary for funding....These requests were made by the loan company, but after document signing.
Back in August, the company had requested my wife's income info...Yes, the lender, but I responded that my income should be sufficient and soon after was told the underwriter approved the loan pending appraisal/title. To me, this said that her income didn't matter.
What recourse do I have?... We have the closing documents that show that we signed them and that we had entered a contract, or that's what we thought.