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07-10-2008, 03:10 AM
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Can a mortgage lender deny an application because they...
...claim there are no comps in the area? My sister is currently involved with purchasing a home. She's through attorney review and has a closing date. Her lender just notified her that the appraiser could not find any comps so they are not going to lend the money. The house she's interested in is in a tiny 700 sq.ft. dwelling in a small community surrounded by other similar type dwellings but the lender disagrees. What should my sister do at this point? Get out of the deal? Thanks for any advice you can give me.
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07-10-2008, 07:46 AM
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Get out of the deal. The leander just told her that the house is too overpriced for them to take a risk of lending her the money. This means that if she defalts on the loan, the bank would not be able to sell the house for the same price they lent to her and the bank would loose money.
It this awful economy, she should be able to negotiate the price down. Or walk away. |
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