Is there a penalty for failing to submit a home loan application by a mortgage lender?

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Is there a penalty for failing to submit a home loan application by a mortgage lender?

My son completed a home loan app about 7 weeks ago. He was pre qualified and met all of the requirements. An application was taken. The lender said all was good and he could go find a house. He found one house, told the lender who said it needed an inpsection. It failed the inspec and the seller would not budge. He found another house, he told the lender and was told it was ok to make an offer and to have it inspected. had it inspected (requested by lender) the seller agreed. He was told the loan was in underwritng. The app was never submitted. No he no longer qualifies. Any recourse?

Asked on June 15, 2009 under Real Estate Law, Washington

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

This certainly doesn't sound right. There has to be quite a bit more to this story, and a lawyer would need all of the facts to give your son reliable advice.  There are also some variations in the law, from one state to another, so he should talk to someone where this is all happening.  You can find qualified attorneys at our website, http://attorneypages.com

I'm not sure why your son no longer qualifies, if he was pre-qualified seven weeks ago. If he's lost his job, or his income has gone down, there may not be much that can be done about this.


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