Lender backed out after closing docs signed
Was supposed to close on a 4 plex Friday 3/20. Final closing docs were late getting out to me but were signed on 3/19 evening and shipped the next morning. Disbursement date on the docs was 3/20. The docs did not arrive in time to title to close on 3/20, so I got a 2 business day extension to close (3/24). As of this morning, everything was set to close today according to title.
As of an hour ago - I received an email and a call from my lender that they were suspending funding to all loans because of COVID19, including my file. I am going to lose this deal and wanted to know my rights here (if any) for legal action. I have never heard of a situation where I am cleared to close, final docs are signed, and the lender just refuses to send the wire. Any thoughts out there what I can do?
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some situations you have to say screw the banks, Get creative with your financing. see if you can get ahold of the seller your self. If you really want the deal offer him more then its listed for to beat out competition. see if he is up to owner financing. make the down payment to him usually 20% and all monthly payments."The buyer signs a promissory note to the seller, which spells out the terms of the loan, including the interest rate, repayment schedule and the consequences of default. The owner sometimes keeps the title to the house until the buyer pays off the loan" there is normally a balloon payment after the 5th year. you then would be able to refi out into a conventional loan with the banks and pay off the balance with the equity from the 4 plex. ( best case)
It wont hurt to try. check this link out, I think you can benefit from it https://www.investopedia.com/articles/personal-finance/082815/pros-and-cons-owner-financing.asp..
good luck!