Survey Issues from Lender

[Billy Daniel]

We are currently under contract to buy a house.  We ordered a survey as this house hasn't been professionally surveyed since the early 90s.  Lo and Behold the driveway to the side entrance garage is halfway on the neighbors property.  To add to the drama, this neighbor has a federal judgment on the property and it is owned by the federal govt!  Therefore, getting an easement is out of the question.  We have come to a deal with the seller in they are reducing the price by the amount it will take to move the driveway and make the garage front-entrance.  Everybody is satisfied.

Now the bank is telling us they probably can't give us the loan because there is an exception on the title work.  What makes this frustrating is that the bank doesn't require a survey nor do they pay for a survey.  Somehow they are still able to refuse the deal.  Does anyone have any experience with this?  They are acting like they've never seen a messed up survey before, but I know thats got to be wrong.