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Can a lender cancel my loan after closing

We signed closing documents 3 days ago on an FHA refinance. The lender is now calling stating our last month payment needed to be made and now is considered late therefore they may cancel the loan. Can this happen after closing? by mlacres929 from , California. May 4th 2017 Reply


You have not closed until your deed has been recorded. Are they denying your loan or are they asking you to pay the payment?

May 4th 2017
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I'm not certain they asked me to make the payment which I've done, but they said it might be cancelled because the payment is now over 30 days. I'm awaiting their decision

May 4th 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,874 contributions

Until the loan has funded and the new deed's recorded, you are not closed and yes. the lender can cancel the loan.. FHA guidelines state you must be current, and have no 30 day late payments in the past 3 months, and no more than 1 in the past 12 months.. to qualify.. Your loan officer should have explained to you in detail the importance of keeping your payments current until you close.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

May 4th 2017
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You can call me if you have any more questions 844-771-LOANRoberta

May 4th 2017
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Larry Gray (lgray_312_247)
#565 ranked lender in California - 1,127 contributions

If you did actually let your last mortgage payment go beyond 30 days before funding & recording your loan you could be in a difficult situation. However, ifit recorded already I would think something can be worked out. The Loan Officer should have been monitoring your last payment very carefully. I would never leta client make a mistake like that. However, some loan officers do a lot of business and may neglect key points like that simply from being too busy. If any loan officer is busy to the extent that cannot pay attention to all important details of the loan and their borrower's requirements...they should hire a full time assistant who pays attention to those kinds of details. Sometimes a Processor will but it is not their job to do so. If it has recorded, but your last mortgage payment was late by 30 days, technically I believe they could still rescind the loan but do not think they will. It may be a loan they will have to keep if it is not saleable due to the mortgage late in the past 90 days. I am not a lawyer, and advise you to consult one if need be.

May 5th 2017
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