Case Study: Loan 1380 – Grant

Meet Grant, an investor who turned to Nadlan Capital Group’s auction platform to refinance his property through a DSCR loan.

At the start, Grant disclosed that his property was in C4 condition—average and well-maintained. With that assurance, escrow funds and appraisal fees were collected, and the loan officially entered processing.

Lenders began reviewing the file, but when a licensed appraiser inspected the property, a major issue came to light: flooding damage that had not been disclosed. This damage downgraded the property’s condition, making it ineligible for the DSCR loan program.

Understandably frustrated, Grant requested refunds for both his escrow deposit and appraisal fee. But here’s how Nadlan Capital Group’s policies apply:

• Escrow deposits cover the costs of running the auction and lender outreach. They’re refundable only if the loan closes successfully, or if the lender raises the rate by more than 0.25% after appraisal. Since the denial was due to property condition, the escrow deposit was not refundable.
  
  
• Appraisal fees are paid directly to independent appraisers. Once the inspection and report are completed, that fee is non-refundable, regardless of the loan outcome.

This case highlights important lessons:
Accurate property condition disclosure is crucial. Escrow refunds are conditional. And appraisal fees are always non-refundable once services are provided.

Though Grant’s loan didn’t move forward, Nadlan Capital Group handled the process transparently and remains ready to revisit financing options once the flooding issue is resolved.

Continue reading on our site: Case Study: Loan 1380 – Grant | ‎נדל"ן ולעניין - השקעות בארה"ב

#DSCRloanrefinancecasestudy #propertyfloodingloandenial #non-refundableappraisalfee
#escrowdepositrefundpolicy #realestateloanprocessingissues