Can a lending institution back out of a signed contract due to a drop in your credit score?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a lending institution back out of a signed contract due to a drop in your credit score?

We have a signed contract with a bank to finance a manufactured home. One of their stipulations was that a loan that we have be paid off. The dealer we are working with agreed to pay of the other loan. The day that he was going to pay the loan off, he called the bank to make sure everything else was in order and was told that they are no longer willing to lend the money due to a drop in our credit score.

Asked on July 27, 2012 under Real Estate Law, Ohio

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Please take the signed contract to an attorney to review on your behalf.  It is very common these days for lenders to add clauses giving them a back door or loop hole to cancel the transaction in such instances.  Good luck. 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption