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After you've closed on a home can they deny you?

We have been at our home 2 months. We have closed and even mailed our first mortgage. We received a denial letter from a mortgage company we did not sign a contract with. Can you be denied after you closed, I mean we went to the lawyers office signed papers and everything? by dsteadham3383 from Griffin, Georgia. May 9th 2016 Reply


Lorne Harvey (lorneharvey)
#80 ranked lender in Washington - 431 contributions

It sounds like to me that you had an open application with a different lender that you closed your loan with. They are required to send out a notice of adverse action. In my opinion it should have been withdrawn versus declined, however the other lender is required to cancel the active loan application via an adverse action notice. I hope this helps to answer your question. Please provide further details for a more detailed response. Thank you

May 9th 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Probably just a delayed notice.. Once your loan has closed and you have made payments, then the loan cannot be reversed unless there was loan fraud.. But for this to happen, it's a lengthily court battle and must be proved before they can call your note due.. More than likely, your lender submitted your file to more than one lender, and the first one turned it down.. but they didn't sent out the denial right away.. I would not worry.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

May 10th 2016
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