Mortgage company delays underwriting – you lose the house.

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Mortgage company delays underwriting – you lose the house.

If a mortgage company doesn’t finish underwriting before a contract expires and you lose the house, is there a way to recover the appraisal and inspection fees, as well as the earnest money?

Asked on June 22, 2009 under Real Estate Law, Tennessee

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

I am a lawyer in CT.  I would need to see the real estate contract to better assist you.  What should have happended if you were coming close to the mortgage contingency date, is that you should  have asked for an extension of the time to obtain a mortgage.  I am not sure why you did not get an extension.  If you did end up getting the mortgage afew days late, why are the sellers now refusing to do the deal?  you may be out of luck here and not able to get back these fees since the bank is not under a time limit to approve the mortgage.  I would show your lawyer the contract to see what he says.


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