Same Day Legal Opinion For A Mortgage Approval

Expedited Legal Opinion For A Mortgage Approval

Full Video Transcript

It was seven o’clock in the morning, and the client emailed me in all caps that my mortgage is about to be denied. Please, I need your help, and then they kept on calling. There was no appointment; we don’t start until nine, but they kept on calling. I got on the phone, and essentially, the situation was that they’re in escrow. They’ve been going through the process of buying a place, and now the underwriter is about to deny their mortgage application. His company structure is confusing, and the underwriter doesn’t understand it, and they just can’t communicate. So they officially need a legal opinion to explain everything. The deadline was at the end of the day. I’m going to show you how we did it, let’s go.

Hi everyone! This is Joseph, and I’m the managing partner here at Tsang & Associates where we solve legal problems with creative solutions. So the legal problem is that this family is trying to buy a house, and the underwriter going through the mortgage application didn’t understand their company structure. It said that the company belonged to another entity, but he says it belongs to him. The underwriter really wants to know if this company belonged to him. Right, the documents don’t show it, but because the company was just transferred, they don’t quite understand the situation, and they’re not just taking his email explanation for an answer. So, therefore, he needs an official legal opinion letter that states that he owns this particular company.

We prepared a legal opinion letter for this bank and for this specific mortgage application, showing the underwriter that they can rely on this letter and this affirmation that the client owns the company. We explain in detail why that is. We show the company minutes, we show the stock ledger, we share the share certificate, we show the transfer of the funds, we show the history of the ownership of the company, and we share the explanations why. And we provided everything underneath that. So it is a formal document that the underwriter can see and rely on. Prior to this, it was just an email correspondence between them and the company. They want to see documents; they want to see tax returns. The tax returns the prior year showed that somebody else owned the company, but since then, a lot of things have happened. It isn’t like I don’t know bitcoin, where there’s a clear stock ledger that anybody at any time can see who owns this particular asset. Companies are still very archaic, and it only updates once a year when you file taxes. And if anybody who filed taxes knows, it could sometimes even take two, three years before something is shown. And the underwriter just didn’t feel comfortable accepting an email explanation that he owned this company and he had assets in this company. So, he is a very wealthy individual that can pay the monthly payments. That’s where the lawyer comes in.

After we provided it by noon, it only took us a few hours, thankfully because we know this company and we’ve done work for the company before as the corporate council. So we were able to pull up a lot of documents and prepare the letter pretty quickly. Within a few hours, provided this letter. The client provided to the banker. The banker provided to the underwriter, and by the next day, the mortgage application was approved, and they were able to get the house. This was our Jedi moment, vroom, right. 

In law school, I remember some of the professors said, like you will encounter this in your practice where you’ll go through your life, and suddenly a situation will come up. And because of your legal knowledge, you’re able to do things when everybody else couldn’t get it done. And that is the power of a lawyer, and that is encompassed in this legal opinion letter. Everybody else tried; it was a no all the way through. Consequences were very severe. But just because of the virtue of the license and because of the explanation, we were able to satisfy regulatory needs, and the impossible became possible. And that’s why I love legal opinion letters. It’s the closest I’ll ever get to being a Jedi. All right, take care. Bye.


In this case, we were able to provide a legal opinion for a mortgage approval within a few short hours. Now, that doesn’t happen every time, but we had worked with this client previously as legal counsel, we knew most of the information required for the case from our previous work, and we were able to get the job done quickly AND, most importantly, successfully.




From the client call in the morning before we opened for the day, it took just a few hours to prepare the legal opinion for this mortgage approval. The case was urgent so we knew it needed to be done by the end of the day and we were able to deliver it before noon on the same day. Once submitted to the client and passed on to the underwriter, the mortgage was approved in just one day.




The reason the client needed this legal opinion for the mortgage approval was because the underwriter did not understand the structure and ownership of the company. The client had recently taken ownership of the company, within the previous year. This meant that the tax returns and other business documents did not yet show the client as the owner. This made it difficult for the underwriter to confirm that the client had the assets he said he did and confirm that he would be able to pay for the mortgage.


Before the client contacted us for a legal opinion for his mortgage approval, he had been communicating and trying to explain the company structure via email, but it just wasn’t working well. It wasn’t clear to the underwriter, so the mortgage was about to be denied. We stepped in to help with less than 24 hours to submit the information needed to help our client and get their mortgage approved.




The challenge in this particular case for a mortgage approval were that we had limited time to prepare the legal opinion letter. We were contacted in the morning and our client needed the letter by the end of the day in order to submit to the bank and avoid a mortgage denial.


A second challenge was explaining the company structure in a way that made it clear for the bank and the underwriter, that this client was in fact the owner of his company and that he did have the funds to pay for his mortgage.




Familiarity With The Company Structure


Because we had worked with this client previously as his corporate counsel, we already had familiarity with the company structure and the details of ownership. This was immensely beneficial because of the very short turnaround time required for this legal opinion.


With only a few hours to work with, we were able to successfully prepare the information required using our previous knowledge of the company structure and legal experience, which worked out well for everyone.


Providing The Details


We knew the problem was that it was difficult to understand our client’s company structure and ownership, especially because of recent changes to the ownership structure. But, we also knew that if we clearly laid out the organization and we provided the additional information showing our client’s ownership, we would be able to help the underwriter to understand this setup. So we provided our legal opinion affirming that the client owned the company in question. 

But we went further, we explained why that was by providing details like the company minutes, the stock ledger, the share certificate. We also showed the transfer of funds and the history of the company ownership. On top of all this information we went further and explained these things so that with all this detail, it was a formal document that the underwriter could rely on for clear information.


Providing all these details with our legal opinion for this mortgage approval really was one of the keys to success for this case.




After providing this letter to the client within a few hours, who passed it on to the bank and mortgage underwriter, the mortgage was approved the next day. This legal opinion was a great success and the client was able to purchase the property with his mortgage approved.




For us, this case was one of those Jedi moments where we knew exactly what was needed and we were able to step in with a legal opinion to help our client purchase a new home when no other methods had worked. We were thrilled to be able to help this client in such a short amount of time with a legal opinion for a mortgage approval. 

We’d love to help you with a legal opinion for your case. You can contact us to schedule a consultation or learn more about all of our corporate counsel services.

Original Content

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