Mortgage approval and lawsuit?

luke · Joined: 21 Aug 2008 Posts: 10 5.53 Dollars($)

I'm currently involved in a lawsuit regarding an auto accident. (I'm being sued) I see that on a mortgage app that has to be disclosed but what will the lender want to get an approval?

A letter from my insurance company?

smithsussane · Posted: Mon Sep 22, 2008 1:30 am Post subject:

Hi Pam!

Welcome to MortgageFit Forums!

Apart from the letter from your insurance company, you should also provide the lender with the summons that you have received from the court where the law suit has been filed. If you do not have the summons or other documents which can prove that a lawsuit is filed, ask your lawyers to provide you with required documents.

Feel free to ask if you have further queries.

Sussane

luke · Joined: 21 Aug 2008 Posts: 10 5.53 Dollars($)

Thanks for the response. What should the letter from my insurance company say, that any damages would be covered by my policy?

Is this something they normally provide?

jerry · Posted: Tue Sep 23, 2008 3:37 am Post subject:

Hi luke!

Welcome to MortgageFit Forums!

I don't think you would get any letter from the insurance company stating the damages for which they had covered you nor the extent of such damages. You may seek the help of your insurance broker & might obtain the proof that you had been covered for the said period under your auto insurance carrier. The coverage benefits & the extent of your coverage would only come under your policy papers. So, you would better go through your policy clauses & discuss with your broker to know if you need to attach photocopies of your policy papers along with your application at all.

Hope this will help you.

Thanks,

Jerry

luke · Joined: 21 Aug 2008 Posts: 10 5.53 Dollars($)

Thanks for the input.

In my state, awards are determined by the jury. In other words, the lawsuit demands no sum of money so I'm not sure where my policy limits would come into play.

My insurance company has refused to settle within my policy limits because they feel the suit is frivilous. So if damages were awarded beyond my policy they are on the hook for it now or else I could sue them for acting in bad faith.

I'm just not sure what a mortgage company wants to see regarding this to get an approval. I can certainly give them a copy of my policy and the suit papers as well.

I was not sure if my insurance company would provide a letter stating they would be covering any awarded damages.

jerry · Posted: Thu Sep 25, 2008 2:13 am Post subject:

Hi Luke!

It will be better if you consult both - the insurance company and the mortgage broker.

Thanks,

Jerry

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