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I am now 14 days after signing a closing disclosure for a home in Hamilton MA Was suppose to closing in the first , but needed a s

Signed rider from The hoa dept because property was being leased. I just got a call from realtor saying lender rescinded the loan because of it being a religious housing. Meaning the property is owned by the Methodist church.Can lender do this , everything has been paid even my final deposit?Appraisal everything has been done.And at time of application it was made very clear that lender was aware property was owned by the church because the lender has received a land lease.Can someone please help I'm out alit if Moneys and I only have til the end of month to get out of my apartment because I was told by lender realtor attorney that everything was clear and ready to go.Now I'm being told this is a shock we feel so badly.But that's not helping my situation by cherylafelder155 from , California. Mar 4th 2021 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,296 contributions

Once a loan is closed, it is closed. Done deal. Signing a closing disclosure is not the final closing, so yes, the lender can back out of the approval. It sucks. All you can do is try another lender. Good luck.

Mar 4th 2021
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,236 contributions

If I am reading you correctly, the home is not on a fee-simple lot, but on a land lease lot. A fee simple title simply means that the land (and home) conveys to the buyer at closing. On a Land lease title, a third party owns the lot (the dirt) and uses a long-term lease to allow someone to build and own home on the lot. When the home sells, the third party still owns the dirt. There are many requirements for the land lease to be acceptable, but I have never heard of a restriction for the lease owner being a religious institution, as long as the lease would otherwise be acceptable. The part I find troubling is that this information SHOULD have been available to the lender very early in the transaction and if it was an issue, should have been called out then. I don't lend in MA, so I am not familiar with any rules unique to MA. My advice would be to work with your current attorney to get this resolved. Check with other lenders and see if they have similar restrictions on who owns the land. This could be something your current lender has an issue with that other lenders don't. In the meantime, talk to you landlord and advise them of the issues and see what can be done to delay the termination of your lease. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in AZ, CA, GA, IL, OR & WA... In fact, NEXA is licensed in all states except MA and NY and we are pending approval in VA, so give us a call. ~ www.ApplyYes.com 480-889-9000.

Mar 4th 2021
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