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Denying Loan for "Collateral" (Property for Sale)

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I am trying to find documentation to determine if denying a loan for "collateral" is appropriate when the issue is that the property is up for sale. The result is that the loan will not meet our guidelines so is this an appropriate reason to deny the loan for "collateral." Or would the appropriate denial reason would be "Other." Can someone point me to the correct location to view documentation to better support the use of denial reason other vs collateral?

What you are describing is collateral that you don't consider acceptable because it's been offered for sale. In that case, I think the appropriate denial reason ought to be "unacceptable collateral" or "Other: Collateral not acceptable."

First published on 04/26/2020

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