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Author Topic: Mortgage Pre Approval Letter  (Read 2110 times)

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Mortgage Pre Approval Letter
« on: June 28, 2011, 09:46:46 AM »

Offline Michael Anthony

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I recently listed my house for sale, and was lucky enough to recieve more than one offer. We turned away a very strong offer, and the buyer we selected came with a pre approval letter.

The buyer included a one time bonus in his salary during the pre approval calculation. The lender discovered that after reviewing W-2 forms, and will not approve the buyer for the mortgage.

Do I have any legal recourse against the buyer? the lender?
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Re: Mortgage Pre Approval Letter
« Reply #1 on: June 28, 2011, 10:26:54 AM »

Offline Jon Niednagel

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It probably depends on the state you are in. Your realtor should have an idea about the laws, and should be helping you with this.
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Re: Mortgage Pre Approval Letter
« Reply #2 on: June 28, 2011, 10:30:05 AM »

Offline Chris

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I know very little about this stuff, but aren't pre-approvals completely non-binding?  Meaning they simply can't be fully trusted?

I would imagine that it would be very tough to make a case on something like this.
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Re: Mortgage Pre Approval Letter
« Reply #3 on: June 28, 2011, 10:39:24 AM »

Offline Michael Anthony

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Quote from: Chris on June 28, 2011, 10:30:05 AM
I know very little about this stuff, but aren't pre-approvals completely non-binding?  Meaning they simply can't be fully trusted?

I would imagine that it would be very tough to make a case on something like this.

The lender is definately not bound to loan the money.

The buyer provided false information (inflated salary) to the lender in order to obtain a pre approval letter. The buyer then used that ill gotten letter to offer on my house.

I turned down a very good offer based on the assumption that the pre approval was obtained legitimately.

If my next offer is not as good as the offer I turned down, I could lose thousands of dollars due to the buyer providing false information.
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Re: Mortgage Pre Approval Letter
« Reply #4 on: June 28, 2011, 10:43:38 AM »

Offline Rondo2287

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Get your realtor on the phone asap to get in touch with the buyer that you turned down.  You may have to eat a couple of grand on the house going back to them, but if you want to sell it fast that is what I would do
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Re: Mortgage Pre Approval Letter
« Reply #5 on: June 28, 2011, 10:54:02 AM »

Offline Chris

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Quote from: Michael Anthony on June 28, 2011, 10:39:24 AM
Quote from: Chris on June 28, 2011, 10:30:05 AM
I know very little about this stuff, but aren't pre-approvals completely non-binding?  Meaning they simply can't be fully trusted?

I would imagine that it would be very tough to make a case on something like this.

The lender is definately not bound to loan the money.

The buyer provided false information (inflated salary) to the lender in order to obtain a pre approval letter. The buyer then used that ill gotten letter to offer on my house.

I turned down a very good offer based on the assumption that the pre approval was obtained legitimately.

If my next offer is not as good as the offer I turned down, I could lose thousands of dollars due to the buyer providing false information.

Ah, right, that makes sense then. 
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