|
During the time in which we were pre-approved for a loan ( the contract was signed on XX/XX/2021 ), and before the end of the loan contingency ( XX/XX/2021 ) ; the mortgage broker was made aware ( by us ) that we had subsequently found that the property ( a two-flat ) could not legally be rented for approximately 1/2 of the year.
We had completed an application with the broker showing the current ( illegal ) leases provided to us by the sellers as year-round income. We were conditionally approved based on this rental income, but subsequently checked City ordinances and found the leases were not valid. We informed the broker several times that we felt this was materially significant and disqualified us for the loan. The broker told us they could not submit this information to the underwriters/lender and that it could only be discovered through an appraisal, not by the city ordinances. We stated to the broker that the ordinance was determinant on reducing rental income, we asked him to notify the lender/underwriter. He did not.
The broker never was able to get an appraisal and we could not close on our loan during the determined period and have yet to receive our earnest money ( even though we had a loan contingency ) because the sellers now claim we were not denied a loan.
We have subsequently found out that we ( through our loan broker ) had an obligation to notify the lender of this change. And that if we failed to disclose material information that altered our status to legitimately obtain a loan, the loan could subsequently be " called. '' We were also informed by the lender that we could not have informed them directly of this material change as the broker was working on our behalf. We have also found out that if this information was given to the underwriters, they would have denied our loan as we would not longer qualify. This denial never came.
The broker is XXXX XXXX XXXX : XXXX XXXX XXXX : XXXX We have many emails regarding this issue and can submit them if needed.
|