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getting un approved for a home loan?

my husband and I signed a contract to build a tract home and we no longer want to purchase the house. The house is under construction and we have advised the builder that we do not want the house anymr. We told them that they can keep the earnest money (12k) as we would rather cut our losses there - they will not let us out of the contract and said they will sue for specific performance. The only way we can get out of the contract is if we are not approved come closing. Unfortunately we will be. How can I make it so that we arenot approved without sabatoging our credit? I was wondering if we can purchase another house ( that we really want instead) and close 2 weeks befoe closing on the new house so that we will not be approved for the original loan because we will have two mortgage payments. Is that cheating the system?And can they come after us?

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  • Duke
    Lv 4
    1 decade ago
    Favorite Answer

    What a chicken **** thing to do, you will take a credit hit for this just like you should.

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  • 1 decade ago

    Wow, well, what you are doing is pretty shady, and the builder should/will come after you..

    Obviously, you should talk to an attorney, since contract law varies from state to state. You usually have an attorney review period after the contract is signed, but it sounds like you are past that already.

    Even if you did sabotage your credit, or bought another property to prevent the approval of this home, the builder still probably has legal recourse beyond your deposit and may be able to still sue for damages. The contract you entered also protects the builder.

    An attorney may be able to reach a settlement between you and the builder.

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  • Anonymous
    1 decade ago

    Well, first if you close 2 weeks before on a different house the new loan most likely wouldn't show on your credit report yet and your loan would still probably be approved (it usually takes 1-2 months for things to reflect on your credit report). 2nd if you waited until it did show on your credit the denial would still be your fault because you didn't comply with the contingencies of your prequalification (which I assume your builder required) because of this yes you may be denied the loan and able to provide that to the lender, however you would still be responsible for the costs they are asking for since the denial was the fault of the borrower and not the lender. Review your purchase contract it probably directly states in it what you are to be responsible for if you back out of the closing.

    Source(s): mortgage broker
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  • 1 decade ago

    Don't go outside the contract. Apply for the loan. Tell the bank that you want to go stated income and 100% finance.

    The bank would deny the loan, and you could easily get out of the contract with the builder on a reason that you did not get the loan.

    Source(s): Personal experience
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  • yuvid6
    Lv 4
    1 decade ago

    You can get out of it and keep your deposit. You will need a savvy real estate lawyer. There are points in the contract that will allow you to get out. Certain inspections. I don't know what state you live in but it wont hurt to talk to an attorney.

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  • Anonymous
    1 decade ago

    Hi,

    I used "Credit Solution" to settle my mortgage.They managed to reduce my mortgage up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

    http://flingk.com/pd0s2st

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  • 1 decade ago

    Yes take them to court..get a lawyer......at least you'll get more than half of the money

    Source(s): this happen to my brother
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  • 1 decade ago

    Talk to an Attorney! Their is no other way to put it!

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