I had my commitment letter given to me on August 8th. I provided all requirements for the commitment to get clear to close. The letter states that the commitment can be revoked only for any CHANGE for my financial status. They then called me 1 week before closing on august 20th stating they would be declining my loan based on NSF fees in early July. This is information they should have asked for /had before my commitment, there were no changes to my status after I received my letter. I am not not receiving my deposit back from the seller because I was declined after my commitment. Is this legal? Seems like the lender failed to do adequate work.

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    Does the commitment letter's fine print say "only changes that happen after 20th August"? And, of course, "Seems like the borrower failed to adequate keep enough money in his accounts" can be thrown back at you. – RonJohn Aug 24 at 21:58
  • @RonJohn You mean after 8th August (the date of the letter), right? – nanoman Aug 25 at 7:09
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    @RonJohn Whether the NSF at a given time can matter depends on the agreement; it's not a generic excuse to renege on any commitment with someone because they had NSF. OP is not looking to renege on anything; he believes he's met the terms. The letter might be viewed as completion of a contract where the borrower promises "no worsening of financial status, and I will agree to the loan" and the lender promises "will make the loan". An issue would be if OP ever signed that he'd disclosed all pertinent facts where the NSF should have been included but wasn't. – nanoman Aug 25 at 7:32
  • @nanoman yes, I meant the 8th. Sorry – RonJohn Aug 25 at 12:15

There are lots of articles out there on this, but I found this one to be very informative. The bottom line is that depending on what other specifics are in the letter, you could possibly take them to court, but even if the letter is ‘perfect in your favor’ - you’d still just be wasting your money and time.


I am so sorry for you, it really sucks when it happens. My family was so close once to what I still think was the perfect place for us....and similar thing, the lending bank pulled my credit again, and some small charge or other, a monthly autopay, and it was just enough to change my credit to debit ratio.

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