Well, it all seemed too good to be true..... Here is our situation... In August of this year we contacted a Mortgage broker who got us approval, actually in just my wife's name for a mortgage on a house we are buying. We submitted every thing the broker wanted including bank statements, old tax returns, cancelled rent checks etc.... My wife had 2 charge offs which as some of you may know from other posts I got it negotiated to pay them off at closing. We found our house and paid for all of the inspections and appraisals and were informed by the broker that he got us approved at 100% with 3% seller assist. This was great news to us as we were finally starting to see our dreams come true. I contacted my real estate agent who drew up all the papers and notified the settlement company of our settlement date of October 29th, 2002. We received from the mortgage broker a committment letter from the lender stating the amount of the loan, intrest rate and when the committment letter would expire which would be 10/31/02. We were told all was going well and in fact my broker said..."Your loan is the only one which seems to be going great right now!", You have nothing to worry about etc..... I called him last night to touch base and see how things were going. I got shuffled around from person to person in his office and in fact spoke to his assistant today. She said...."We seem to have a problem with the loan, the first lender (Who did committ) backed out of the deal because he relooked over your cancelled rent checks and determined you were late paying every month" I said "No we are never late, I pay my rent the first of the month, my landlord does not cash them until the middle of the month, as you can clearly see from the rent checks." In fact sometimes my landlord may not cash the check for over a month, he does not need the money as he is very wealthly to begin with. None the less even after I told her I could get a sworn statement from my landlord claiming I was never late, she said the lender is still taking more merit on the cancelled rent checks and claims the lender would still think the landlord would lie to them! I said wait a minute!! You had all of this information...Rent checks, bank statements etc...furnished to the lender and they committed to this deal, they knew this before they committed and still committed to it, nothing has changed on our end finacially or personally since they committed to this deal, isn't this against the law?? She said, No, they do this all the time and that this is what happened. She said a lady that was handling this loan had jumped the gun more then a few times with our loan as well of many others and she admitted that the lender fired this person because of it. I said irregardless, they committed and now they are backing out??? She said, yes but.....We now got you approved through another lender for 95%, 3% seller assist and you only need to come up with another $4000.00!! I said you gotta be crazy, you know our financial situation we do not and cannot have that amount of money in 10 days. We are about to close on this deal and we relied on your word that this was going to happen. I said we gave our landlord notice, he listed our house in the paper, we paid for insurance, contacted utilities, the post office, told friends etc....and now you are going to do this to us???? She said that is what is needed to seal this deal but she said she may be able to get it a little cheaper for us. Yeah great!! Thanks a whole hell of alot! So in closing we are going to be homeless in 10 days and do not have this extra money to close with this new lender. FlaTan or anyone else, can they do this??? Seems illegal to me, I mean they committed and the only thing in the contract that says the lender can pull out is if our personal or financial situation goes adverse. Which from the date of committment it hasn't, in fact my wife's credit score has gone up. Any thoughts??? I am totally stressed out with this! I have contacted my attorney but she is out of the office today. Thanks! Tac
Hearing stories like this scare the crap out of me, because we're supposed to apply for a mortgage in a month or two. I hope you have some luck at the last minute. I wish I had some advice for you. Maybe Fla_tan will have some words of wisdom!! Good luck to you. Please keep up updated!
I am definately not an expert, but if I remember correctly from when I purchased my home, If I was late even once in the past 12 months I couldn't get approved. This new finding of not approving you because you are late is bs. This new loan info, is it from the same lender? If so, I would call them on it. Call them yourself. Sounds like your loan officer is being a little worm and is scared to talk to you. Also, I did not have to have cancelled checks. I had a rent verifcation completed for myself. My landlord lived in Florida and I would give his daughter who lived next store the check. It took almost one month to clear my account one time. Just because your landlord held on to the checks doesn't mean that you should be penalized for this. If it is standard practice in your area to use cancelled checks, this could happen to you again if you choose to go with another lender. Good luck!!!!!!
I don't even get my cancelled checks. I hope they don't do that to me. I would call countrywide. I've heard great things about them. They couldn't help me because my husband hasn't been at his job for 2 years, but I'd try them if I were you. I think they have a rapid close program too.
I agree that you should call the original lender yourself....it's possible that the broker didn't lock your rate as he was supposed to, or that he gets more $$ from the second lender....or 100 other possible reasons. I'd want to hear it direct from the lender that they pulled out because of the rent checks.
They won't even consider a letter from my landlord, the broker said flat out that the deal is dead and cannot be negotiated. This is total BS, I was never late and my landlord has never cashed my checks on time. I am going through the same broker but now he has a different lender. I did get to speak to another attorney today who seems to think I have a very good case. He said I could pay the extra and go with this new lender if it works out and then sue the original lender and broker for breach of contract. I am going to see him on tuesday with my paperwork. Thanks so far for the help, as far as going somewhere else, again I need to seal the deal in 10 days time!! Tac
Thats why so many here have gone to countrywide when the lender backs out 10 days from the closing. This is a bait and switch deal from a loan broker and you fell for it.
I don't even get my canceled checks. tracyb0313 Now you see why I won't use a checking account that don't return my canceled checks to me. LB 59
Tracy even though your bank doesn't send you your cancelled checks, the bank does keep them on file. With most banks that don't return checks you can go online and see a photostat of the check which you can then print if needed. fla-tan
Tac What it sounds like to me is that when your paperwork went to underwriting for final approval, the underwriter saw this as a problem and declined the loan. It may be possible to get the lender to give an "excepton" and approve the loan. I would suggest that you ask the broker if he/she tried that yet. Unfortunately I have seen things like this occur before (and yes I have even had it happen to me). As a couple of other people have pointed out, it is possible that your broker is trying to "bait & switch" you but I tend to doubt it. Also, unless an attorney can prove "bait & switch" I doubt that you have much of a case (sorry for negative info). Something that I did notice when rereading your post, "She said, No, they do this all the time and that this is what happened." What happens all the time? That pre-approved loans are declined or that they pre-approve loans all the time? What was the interest rate that you got in Aug and what is the new interest rate? Email me off board if you wish. fla-tan
FlanTan ================= How does the landlords holding checks before cashing them make him late on his rent payments ????????? ????????????????????? This is a classic example of the whole problem with the credit industry. Nearly every thing is based on myths , falsehoods, halftruths and erroneous assumptions while very little is derived from actual facts! ! ! ! ! . BACKGROUND: 1*Assett Management 18Years 2*Financial Services 18 Years 3*Insurance 18 Years 4*Stock Market 18 Years 5*Business Owner-Housing Company. 29 Years LB 59
lb Please show me where I said that it did. Otherwise, PLEASE DO NOT ASCRIBE WORDS TO ME THAT I HAVE NOT SAID! fla-tan
Did you pre-qualify for a mortgage or were you pre-approved for this mortgage? There is a huge difference between the two. A pre-qualify means only that they "think" you'll be approved for a loan. It doesn't imply an actual approval.
Couple of questions about your broker... 1) How long have they been in business? The reason I ask is that with the dropping of interest rates and the boom in re-financing, everybody and their mothers got into the broker business. There are a lot of clowns out there that really don't know what they are doing. 2) Did the broker divulge who the underwiter is? (The entity who is going to lend you the money). If the broker hasn't divulged that information, ask him for it. If he refuses (and there is no legitimate reason he should), its an indication that they screwed up somewhere and don't want you talking to the underwriter. Or, as someone else suggested, they may be doing the bait-and-switch. If you get the underwriters name and contact information, call them and explain the situation. It may not help, but it certainly can't hurt. Also, companies like Countrywide and E-Loan have something called AU systems (Automated Underwriting), which is a streamlined qualification process. Some people qualify for AU, some don't. This is a good example of why I don't have a problem of having two or more brokers working on a mortgage deal. There is just too much riding on the process to leave it in one company's hands. Brokers get a little ticked off if you do that to them, but it keeps them competitive and honest. Wichita
LB Please show me where I said that it did. Otherwise, PLEASE DO NOT ASCRIBE WORDS TO ME THAT I HAVE NOT SAID! fla-tan =================== How does the landlords holding checks before cashing them make him late on his rent payments ????????? I never claimed that you said this. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~I was merrily asking for your insight concerning the following ^^^^^^^^^^^^^^^^Im sorry if you misunderstood the intent of my post. She said...."We seem to have a problem with the loan, the first lender (Who did commit) backed out of the deal because he re looked over your canceled rent checks and determined you were late paying every month" I said "No we are never late, I pay my rent the first of the month, my landlord does not cash them until the middle of the month, as you can clearly see from the rent checks." tac14033 ============================
The loan was past the Pre-approval process. That means I actually had a commitment letter, or so I thought, committing the lender to give us the loan. I spoke to my attorney who seems to think I might have something, since I do have the commitment letter and they backed out of that deal. She said I could always close on the new deal the broker has and sue him for the difference. The loan was pretty crappy to begin with being a high intrest rate loan, too embarassed to mention here. I did speak to the broker who says he got another lender who approved us for the same terms, 100%, 3% seller assist, so we pretty much have the same deal. He said he overnighted them the paperwork and said to put a rush on it since it is a purchase. He hopes the underwriter will sign off on it the middle of next week. Thanks for the help! Tac
Wichita Normally I don't even get the name of the underwriter, though I always know who the lender is. Knowing the underwriter will make very little if any difference normally as they have certain guidelines they must follow. However, you can speak with the lender and see if an exception can be made, as I pointed out in an earlier post. Also, if I was working with you and you told me that you were working with another mortgage broker then I would tell you to go ahead and I would cancel the application with me. If you have that little trust in me then I don't want your business. And most of the people in the business that I know feel the same way. Getting a good mortgage entails having a lot of trust and what you are suggesting hints at a lack of trust. fla-tan
In this scenario what I would do is show that the amount of every check is identical with no late fees and also show a copy of the lease that showed what the rent payment is supposed to be and that each check is for the proper non-late rent amount. It should not be the responsibilty of the tenant to make the landlord deposit rent checks by a prescribed deadline. Again, I can not tell another mortgage broker how to run their business I can just state that I work to the best of my ability to help my clients. Tac, you might want to provide your mortgage lender with the information that I just mentioned and see if that will get you your loan at the amount you are expecting. fla-tan
