Problems with lenders

George Stephens, CRB, and Charles J. "Chuck" Jacobus, JD | Advice columnists

June 9, 2010

Dear George: Our lender has given us the runaround on a second home. We've submitted the same paperwork three times, but he's asking for more information. We're going to miss our closing and lose our rate lock. Now he says I'll need to apply again and pay another $500 application fee. All the inquiries from the lender have lowered our credit score; we might not be able to qualify for a mortgage with another lender or afford the higher interest rates. If we lose our rate lock and miss our closing, can we rescind the deal? Do we lose more than earnest money? What do we owe our REALTOR®?

Answer: You’ve asked three questions:

"If we lose our rate lock and miss our closing, can we rescind the deal?" You will be in default of your purchase contract.
"Do we lose more than earnest money?" The consequences for you depend on what the seller decides to do. His options are spelled out in Section 15 of the Texas Real Estate Commission contract.
"What do we owe our REALTOR®?" The terms of your contract with your REALTOR® are in the buyer-representation agreement that you signed
with her.

You can file a complaint against the lender with the Texas Department of Savings and Mortgage Lending.

E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.

Recent Can I evict my tenants? How many homestead exemptions can we claim? Doesn’t water damage have to be disclosed? Why won’t my lender call me back? Is there a “cooling off” period for real estate transactions? What documents is my HOA required to provide?