Backing out of a refinance because of disatisfaction with lender.

Get Legal Help Today

 Secured with SHA-256 Encryption

Backing out of a refinance because of disatisfaction with lender.

I applied for a refinance, paid for appraisal and credit report up front. The processing took forever, long enough that my original application expired and I have to do another. I want to refinance elsewhere, but would like my appraisal and credit report money refunded. There is a disclosure that states it would be refunded if an applicable law applies. Is there a law in NY state that I can apply to this situation? I was told there may be one that allows anyone to back out of a refinance and all costs would be refunded. Thanks for any help you can provide.

Asked on May 21, 2009 under Real Estate Law, New York

Answers:

S.J.H., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You are not entitled to get back the appraisal fee or credit report back since these were fees done by a third party and not necesarily the loan processor. However, you do own the appraisal and you could have the appraisal certified to the new lender which may save you an additional appraisal fee if the new lender approves. As to any processing fees that were charged by the processor, that you may be able to seek reimbursement if you can show that the delay was not caused by you but by the processor. They in all likelihood will not necesarily give it to you unless you use them again for a different loan. If you are truly unhappy and can establish that they cost you the loan, you could file a formal complaint with the banking department.

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Usually, lenders are allowed to collect monies for services rendered, regardless of whether the loan closed or not.  If they actually got an appraisal and a credit report, your possible option would be to file a consumer complaint through the NY State Banking Department.

Explain your situation and the fact that the lender didn't practice good faith by basically unduly delaying your application process.  Ask for the money back and see what happens.  By going through the administrative agency, you are exercising your administrative rights. http://www.banking.state.ny.us/ 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption