Borrower lied about property condition — now what?

Felicia, first: document everything. Pull your original intake form, your emails, any written representations the borrower made about property condition. You need a paper trail showing you relied on their representations. Second: your broker agreement (you have one, right?) should have a representations and warranties clause where the borrower certifies the accuracy of information they provide. If so, you're protected. Third: do not engage with the borrower's blame. Respond professionally in writing only.

Not your fault. Document and move on. Don't work with this borrower again.

wow what a nightmare. so sorry this is happening. the audacity of some borrowers...

I've seen this exact scenario. The borrower is trying to make it your problem because they're scared. Don't let them. You did nothing wrong. If they escalate, talk to an attorney — but usually they back down when they realize they're the one who lied.

thank you everyone. i do have a broker agreement with a reps and warranties section. feeling better about my position. blacklisting this borrower for sure.

Add them to your "do not work with" list and share the name (privately) with broker colleagues you trust. The community needs to know who the bad actors are.