Approved then shot down at final step to closing??

[Cissy1974]

Hi, I am new here but I think what I have will interest some. My husband and I found a very cheap foreclosed home back in September of 08. We went to the bank (that now owns the home) in search of a loan. We were denied a loan at the bank but they referred us to one of their other branches, it is owned by the same bank but it's a place for consumer loans. When we spoke with them they told us we could afford the home with our wages and we were approved and it got the ball rolling for buying our home. The house was listed for $37,000 dollars and he told us he could loan $32,300. So we asked the bank for seller's assist and they gave us $4700.00 in sellers assist. The lawyer then asked the bank for a copy of the appraisal but the bank would not give it. Mind you this is their house now, it was forclosed on, they have it listed with the real estate office, it's costing them money but they wanted us to get it on our own so the lawyer started the process. Well the appraisal came back at $37,000. I have been through so much I can't remember if the next part I am gonna explain came first or second but whichever we then needed a title search. When that came back it did'nt match the deed. Apparently the original deed showed the house sitting on 5 acres of land but the previous owner sold part of the land to her daughter but they never changed it on the deed. We could'nt get title insurance because the deed did'nt match the title so the bank had to get a surveyor. Well they did what they needed to do the bank fixed the deed to match the title and the title insurance company approved it. After waiting 2 months and some days and going through all the steps my lawyer called me today and said to get home owners insurance on the house and have them fax the paperwork to him he wants to close on Friday. So we rush home from work and start our insurance search and find that we need to know specifics about the house so I call my real estate agent to get the answers (we are first time homebuyers)and low and behold my dreams were just crushed. She proceded to tell me that I needed to call the lender because he was talking something she did'nt even understand. So I called him and he proceeds to tell me that the house is not suitable for him to lend the money. Why after everything we went through we are 2 days from closing does he tell me he won't lend the money after he already said he would. The real-estate lady said she even called him at one point to see if there was a time limit on the money we were borrowing and he said no they have time because this is an in house loan. He never gave any indication that the loan would not go through. We were in constant contact with him through the whole process. Is there any legal standing here. Can he get away with this? Why would he state a loan amount and put us through all of this if it was not a for sure thing? I would not even of known that it was all of a sudden denied if I had'nt called my real-estate lady to ask questions about the home for the insurance. He never attempted to call me and tell me anything or my lawyer for that matter. I know that its unethical for sure but do I have any legal standing??

 

[dee_dub]

they told us we could afford the home with our wages and we were approved and it got the ball rolling for buying our home. The house was listed for $37,000 dollars and he told us he could loan $32,300.
...
So I called him and he proceeds to tell me that the house is not suitable for him to lend the money.

What were the terms of your original approval - what was it subject to? And why did he think the house was not suitable?

 

[Cissy1974]

The only terms he discussed with us was the fact that it was going to be a 25 year loan and the payment would be $370.00 a month. He said that the house had water damage (which it does'nt) there were 2 storm windows broken, and it sat empty for a year. On the original deed it said we had .88 acres of land and when we got the survey redone it came out that the house actually is on 3.12. I am beginning to wonder if this bank just did'nt decide they wanted more money because of what the new survey showed. Also when I spoke to the lawyer he said that the loan company would be responsible for all charges he incurred because they backed out not us and I just realized this morning that in September we gave him a check for $265.00 dollars for the appraisal and he just cashed it yesterday after the lawyer told him he was responsible.