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Good morning. I certainly understand the situation and your concern. What happened with your loan is not uncommon, as lenders will often obtain a second appraisal, to be sure the loan amount reflects the current value of the home and market conditions. It is not uncommon and typically you can try and challenge the appraisal by getting a third one done, if there are issues. A stipulation to the loan is that it appraises for the loan amount or a portion thereof, so the lender has every legal right to do what they did. All the fees and costs which you incurred where part of the loan process, some being incurred even before the first appraisal, which could have resulted in the home coming in for less and thus ending the deal then and there. If you re-read the loan documents and application, there is likely a clause in it, that says you will not hold the lender responsible for any cost incurred, if the loan is denied and that you agree to other terms and conditions. While I understand that you want to recover for the damages suffered, the decision to make the loan is at the discretion of the lender and as long as they acted in good faith, would make it very difficult to sue them for damages for denying the loan. In addition, based upon what you described above, they would still approve you for a mortgage but just 30k less then what you needed. Re-read all the documents you have from the lender and see if it addresses your issue. If not, then you can always try and write a demand letter, advising that you relied on their representation
that the loan would be approved based upon a commitment letter/approval letter and as a result, incurred these unnecessary costs. You can see if they would respond and if they do not, then would need to consider retaining an attorney to sue them, once you determine what your damages are AND if you have a valid cause of action.
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