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What can happen if a post-closing mortgage condition is not met?

I received a pre-approval letter for mortgage and one of the conditions is to present pay-stub from new employer 30 days after start date.I was told I can close prior to starting the new job.If for some reason the new employer cancels the employment offer after I closed on the purchase and funding, can the lender cancel the loan as long as I still make the payments? by xr2424862 from Longbranch, Washington. May 20th 2017 Reply


Greg Ocken (greg.ocken@movementmortgage.com)
#93 ranked lender in Washington - 9 contributions

Once you the loan closes, and the Realtor hands you the keys, the escrow company makes the switch (monies from buyer to seller) and the title company makes the switch (records new ownership in public records at county). There's no turning back at that point. It is fully yours, and you are obligated to payoff your new mortgage debt or face potential foreclosure proceedings. The lender no longer follows if you're still employed or what your credit profile is afterwards. The lender cannot pull out the rug and take the loan back. It's a done deal at that point.Hope that helps, any other questions let me know. In fact, most lenders don't know, but there is a loan program that allows us to qualify you on 'projected income' which means we can close the loan before you receive your first paycheck. Give me a call at 2534260016 and we can discuss more. Thanks. -Greg

May 21st 2017
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,553 contributions

The official rules generally require you to provide at the last 30-days of pay stubs to underwriting PRIOR to closing. If you just had a job change and don't have 30-days of pay stubs, you can sometimes get a lender to close the loan with just one pay stub, but they want you to give them a second one to put in the file as soon as you get it. It is a dumb risky move on the lenders part. But once you close, it is closed. They can NOT go back and "un" close the loan because you didn't provide the second pay stub. You have your loan, and as long as you make payments, you will have no problems. The lender on the other hand probably now has an unsellable loan, and will likely take a loss on the loan. But again, not your issue. You are good.

May 22nd 2017
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