Legal Question in Real Estate Law in California
Just signed off the loan documents to buy my 2nd house. Then the new lender demands that I buy extra insurance coverage for my 1st & current house (different from the 2nd house). The 1st & current house insurance coverage was accepted by a different lender 2 years ago. The problem: the cost to buy the extra insurance for the 1st house may put monthly expense for the 2 houses close to 37% of my monthly income. Can the new lender tie the 2nd house loan to the 1st house loan and force me to buy the extra insurance for the 1st house which already had a loan from a different lender?
2 Answers from Attorneys
Well, yes, the new lender can make whatever demands and raise whatever requirements it wants -- but only before you and said lender enter into a contract. After both parties "sign off the loan documents," you are in contract, and I don't see how either party to the contract can expect to impose new requirements upon the other.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
