Do lenders provide a letter 'denying' financing?
As everyone knows, entering into an agreement to purchase a house must be grounded with good intent and using an inspection/financing clause for anything other than the intended reason can result in litigation.
All that being said, I do not expect any qualms from the inspection aspect and my agent forwarded me the email during the offer phase indicating that the buyer in question was "fully preapproved". Now, that doesn't mean much because as everyone knows the lender still has to do an appraisal, etc, etc.
For reasons I won't bore anyone with, there is a chance that the buyer will try to get out of this deal, at which point I will not be signing the mutual release and will commence litigation. That said, I wanted to know if anyone here has ever actually seen a letter from a lender indicating that indeed the 'other party' was not able to secure financing. I suspect this never happens as the lender doesn't want to get involved with 'buyer's remorse' nor does this actually happen much. A broker may be in a tough position and thus have to secure financing from another lender at a higher rate - usually - if indeed this happens, but thought I'd gather some datapoints from fellow RFDers.