Posted on: 28th Oct, 2010 05:03 pm
After two months of jumping through hoops, our mortgage company finally gave us a letter of commitment and set a closing date for a week from now ... however, they are still in the process of gathering documents and have given us a list of conditions along with the letter of commitment. Even though we have complied all the conditions submitted, they are asking for further information and explanation regarding these conditions, even looking into previously approved situations such as child support and credit counseling. If they find discrepancies or errors, can they deny the loan? we are just days from closing. What does a letter of commitment with conditions really mean? and is it possible for a mortgage company to deny after approval.
Hi music!
Welcome to forums!
There are chances that the lender can deny the loan if they find there are discrepancies or errors in the information given by you. However, once a letter of commitment is issued, the lender will normally not cancel the loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
There are chances that the lender can deny the loan if they find there are discrepancies or errors in the information given by you. However, once a letter of commitment is issued, the lender will normally not cancel the loan.
Feel free to ask if you've further queries.
Sussane
my broker sent me the commitment letter and said i need not sign or return it
back to him, does this sound fishy?
back to him, does this sound fishy?
Welcome keith,
If you haven't signed the loan commitment letter, then you should sign it now. This is a letter which explicitly mentions the terms under which the lender agrees to lend money to a borrower over a particular period of time.
If you haven't signed the loan commitment letter, then you should sign it now. This is a letter which explicitly mentions the terms under which the lender agrees to lend money to a borrower over a particular period of time.
I don't think it sounds fishy, Keith. Lots of lenders don't require that a customer return a signed copy of a commitment letter.
As for a commitment accompanied by conditions, it is precisely that: a conditional commitment. Once all conditions are satisfied, a consumer then has a full commitment for the lender to grant the loan requested. If any of the supporting documentation supplied fails to meet the condition asked for, a lender has every right to deny the loan request at that time.
It's pretty far-fetched that they'd schedule a closing based on a mere conditional commitment. Apparently, they are super-confident that all conditions will be met - in full, and on time.
As for a commitment accompanied by conditions, it is precisely that: a conditional commitment. Once all conditions are satisfied, a consumer then has a full commitment for the lender to grant the loan requested. If any of the supporting documentation supplied fails to meet the condition asked for, a lender has every right to deny the loan request at that time.
It's pretty far-fetched that they'd schedule a closing based on a mere conditional commitment. Apparently, they are super-confident that all conditions will be met - in full, and on time.
my house was foreclosed on while we were working on a modification loan we were not notified our modification was denied,we live in ri does anyone know the odds of them rescinding the foreclosure? i am working and have been working with ri housing.any help would be great thanks
this goes with the above. nobody showed up for the auction so there were no bids placed, i also know the property was turned back over to the bank and the deed has not been recorded as of this morning
Hi maryj,
Your query has been replied to in the given page: http://www.mortgagefit.com/annoucements/about52255.html . Please take a look at it. I hope it will help you.
Thanks
Your query has been replied to in the given page: http://www.mortgagefit.com/annoucements/about52255.html . Please take a look at it. I hope it will help you.
Thanks