Legal Question in Real Estate Law in Florida
loan application
We moved to FL, and attempted to purchase a home in FL before our home in NC sold. We applied for a loan with the builder's mortgage co. and with a major bank. We were only planning to take out one loan, but applied to two companies to find the better deal. The major bank denied our loan, citing ''insufficient liquid assets and income insufficient to support expenses.'' The 2 mortgages on our home in NC and the 2 mortgages proposed on the FL home were equal to our net paycheck. The builder's lender added a form to our underwriting file: Potential to Rent, and approved our loans. We decided wisely not to purchase the FL home, because we wouldn't have even been able to buy groceries, much less turn on the electricity to the FL home. The builder kept our deposit. My question is did the builder have the right to keep our deposit? They approved us only after they added the potential to rent form for our NC home to the file, boosting our income potential. The major bank asked us to forge a document stating that the NC home was rented. They told us we could get a form off the internet. We refused, and our loan was denied. It is my contention that the builder's mortgage co. also should have denied our loan, & returned our deposit.
1 Answer from Attorneys
Re: loan application
The first place to look is the contract with the builder. Depending on the language of the contract, you may be entitled to cancel the contract if you fail to qualify for a loan. In this case, it sounds like something was added something to your file making it look like you were qualified and approved for the loan. Our office can review your paperwork and give you an idea based on the precise facts of your case, including the language of your contract.
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