Legal Question in Real Estate Law in Nevada

Re: signed mortgage loan

When you apply for a residential loan, the papers are typically put together with "conditions" remaining to be met before they will make a final commitment of the funds. One of those is invariably that the property value sustains the amount borrowed. In other words, unless it appraises for enough to stay within their prescribed loan-to-value ratio, they will not make the loan as proposed.

You can understand that a lender does not want to lend more than it could comfortably sell the property for in the event they had to foreclose and take ownership of the house. If it turns out to be a lower value (which, apparently, was the case) they demand a higher return on their investment for that higher level of risk. This is nothing unusual or inappropriate.