| Secured Loan - Refusal based upon valuation [message #379884] |
Mo, 10 April 2006 19:00 |
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Hi All
I recently went for a secured loan through a broker. The loan was
approved and underwritten successfully and they sent me a copy of the
credit agreement, that they had signed and I duely signed and sent
back.
They are now telling me I cannot have the loan because there is not
enough equity in the property, as the LTV has been limited at 90%.
My questions are:
1. If they have signed the agreement and I have signed the agreement,
does this not mean that the agreement has already been executed and
they are obliged to release the funds to me ?
2. Have they been negligent in what has happened ? During the initial
application, I informed them that outstanding balance on the mortgage
together with the estimated value of the property.
Thanks for your help.
Jamie
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| Re: Secured Loan - Refusal based upon valuation [message #379895 ] |
Mo, 10 April 2006 20:00 |
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jamie.graham [at] dsl.pipex.com wrote:
>> 1. If they have signed the agreement and I have signed the agreement,
> does this not mean that the agreement has already been executed and
> they are obliged to release the funds to me ?
No, because any loan is subject to valuation of the security address
> 2. Have they been negligent in what has happened ? During the initial
> application, I informed them that outstanding balance on the mortgage
> together with the estimated value of the property.
>
No, as the valuation is performed by an expert third party which report
back to the lender
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