Good for you, keeping going on it. The “secret of SUCCESS” is persistence. Keep on.
If your sellers are nervous, perhaps you can get them to relax. They want to buy their new home. I would suggest you try to talk to their sellers. If you can get the sellers’ sellers to ease back, your sellers will probably feel better and want to continue with you.
Somebody earlier had a good convincing argument, I thought. “You will get the property sold earlier with me continuing, than you will with a whole new buyer.” Use that on both the sellers and the sellers’ sellers.
If I were in your shoes, I would call the appraisal company and get them to get the appraisal report to the new mortgage company. If necessary, you walk it between them.
Sue you attorney. Are you mad? Well, of course you are mad = angry. But the attorney may not be very helpful, but suing will probably not help much. I also do not recommend going over and kicking the attorney or any body at the mortgage company, even if that is what you feel like doing. Get out the tennis racket, baseball bat, or golfclubs and attack the little innocent balls.
I am very upset right now. I was in the process of purchasing my first home and it was denied on July 19,2001.
The reason of denial was they (mortgage company) could not
determine how long my funds for downpayment was in the account. The money was originally in my mother’s account
because we decided to purchase the house together. I was
recently engaged so my fiancee decided that we should get the mortgage and our name instead of my mother. We explained this to the loan processor, who is the branch manager. I was referred to her by her mother who is a coworker with me. The branch manager understood and told us it will not be a problem. My mother transferred the down payment into my account and gave me a gift letter. This loan processed began in May and my closng date was July 31,2001. The branch manager never informed me that there was a problem with the file. Since she never called I assumed everything was okay. I was suppose to receive my commitment by the end of June but I didn’t. So I called the branch manager to get some answers and she told me everything is fine that she gave the file to the underwriter to process. Now this was July 5,2001 when I spoke to her. Once again I relied on her integrity and professionalism with the understanding that my file was ok.
A week went pass and no answer from the branch manager. So I called her and could not get in touch with her. She was always in a meeting. Finally when I did get in touch with her which was on July 19, 2001 she told me my case was denied because my down payment was not in my bank account for a long period of time. The owners are upset because they were in process to buy another house. My children are upset. It’s a mess. This could have been avoided if the branch manager would have told me beforehand. We could have left the money in my mother’s account and put her on the mortgage with us. This is truly a nightmare. Now we have to quickly find a place to stay. Our wedding date is September 8, 2001. I live is New Jersey in the Passaic County area and it is hard to find a decent place to stay without paying alot of rent. This is a nightmare. We asked the owner if they consider lease option but they said no because they need the money now to purchase the other house. Just thought I share my nightmare story with you.
The name of the mortgage company is Countrywide Home Loans.
Oh well, I have to start all over again with this paperwork.
YOLANDA
Hello everyone,
I just want to say thank you for all the encouragement, advice and honesty from each and everyone of you. We are in process with another mortgage company. We will hear from them on Friday. I do have a quick question.
This is a fha deal. The previous mortgage co have to submit to the new mortgage co an appraisal and the fha code. The previous mortgage co stated they never received the original appraisal from the appraiser. So the new mortgage co states they can not submit file unless they receive the fha code and appraisal. This is a mess and the seller’s are ready to back out of the deal. I contact my attorney and he doesn’t have anything to say about it. I wish I can sue him and them. What can I really do in this situation? it’s seems they are in this together.
Posted by Bill (NYC) on July 23, 2001 at 01:14:26:
It’s terrible what happened to you and I totally sympathize! It happened to me once also… My nightmare was with NORWEST Mortgage (I will NEVER use those LOSERS again!)but I didn’t lose the deal. ALWAYS have a backup bank. I thought I was approved and the idiots never said anything to me until the contract was about to expire. I was waiting for them to give me a closing date and my loan officer kept telling me that everything was going GREAT and things looked FINE. Well, they never notified me that there was a problem until the very end. I was furious! I immediately found another Bank, got approved and closed on the house within a couple of weeks. Go figure. The moral of the story is… DON’T ASSUME everything is fine! Triple check for yourself because there are a lot of incomptetent people out there!
Posted by Frank Chin on July 20, 2001 at 19:59:02:
The same thing happened to me in 1993. My suggestion is get hold of a mortage broker immediatey.
I submitted two refi applications to the same bank, one was approved - I got the commitmemt letter. The other was turned down.
The Bank manager admitted it was the most idiotic thing she has seen.
She pretty much told me that as illogical as it may seem, I’ll probably expend a lot of time to get the decision reversed. The underwriters have to follow stupid rules to the letter. So I got hold of a mortgage broker immediately.
Witihin two months I got a mortgage at a lower rate and less points.
In your case, tell the seller that you’re moving forward with another bank pronto, and he can close with you a lot quicker than if he start looking for a new buyer.
By the way, I told the first bank I was going to sue them in small claims court for the application fee. But later on, I told the Bank manager that I decided against it because their turndown saved me a ton of money.
I read your post and if you feel you need some help my company might be able to help. We are a Christian company helping people get into homes here in Michigan but we operate in all 50 states. Please E-mail me and tell me your situation and maybe we can help!
I will add that with patience and persistence these stumbling blocks of the “system” can be overcome!
I went through the same crap when I purchased my first home seven years ago. I had to switch lenders and it delayed my closing for several weeks. My sellers were not happy but they hung in there. Eventually, we closed but I still remember the aggravation. I can’t add anything that hasn’t already been suggested to you other than stay the course, have your agent speak to the sellers (or you may want to speak to them again) and ask for more time, don’t give up and go with another lender.
Yep, yep, yep - alot of here can relate to your exact situation. Hate to say it but there seems to be a lot more INcompetent people out there than competent, and they have caused more than one grey hair and/or stomach ulcer in this group. The best thing is to 1. surround yourself with only the very best most competent pros (who have excellent references from investors YOU PERSONALLY KNOW) 2. babysit the thing the whole way - call them DAILY if you have to do - ride their a-- like Zorro (I am quoting Cuba Gooding from Jerry Maguire) if you have to … crass but it’s true… and 3. yeah call ED! Today! You will probably get email from some mtg brokers today because of your post, saying they can save your deal, but forget them, EVEN IF THEY SAY THEY WORK WITH ED. Call the real deal! A word to the wise And Good luck!
Posted by Valerie PA on July 20, 2001 at 08:57:46:
Yolanda -
I had a very similar thing happen to me when I was buying my first house. I cannot stress this enough… GO TO ANOTHER MORTGAGE BROKER!!! Explain to the seller that it was a misunderstanding of funds between you and the mortgage company and ask them to extend the settlement date (amend contract) and get moving TODAY with a new company.
I wholeheartedly agree with Mark, you can get this house. You just won’t be able to settle as soon as planned. My situation worked out and so can yours.
Keep your chin up and get moving!!!
Good luck to you and you family and enjoy your new home.
Yolonda,
Don’t give up…Find yourself a good mortgage broker and put it back through. Or try calling Ed Garcia he could probably help you or at least steer you in the right direction. You can find Eds information on the financing forum of this site.
With a little persistance and determination there is a good chance you can get this home.
Posted by Frank Chin on July 25, 2001 at 07:46:19:
Hi Yolanda:
I don’t know if there’s a real estate person involved in this. Usually, these folks do a lot of business with particular banks, and can talk directly with certain underwriters.
If so, find out who the appraiser is and what the FHA code is. The RE person or you can then call the appraiser to determine if the appraisal was written up and if it was sent.
If speed is essential, why don’t you tell the new mortgage company to get a brand new appraisal done - which they’ll have to do anyway if you just walked off the street.
If your attorney is asleep, ask him to make a few calls for you, and you don’t mine paying him a few dollars more for the trouble. I usually find some closing attorneys think like clerks - they just process papers for simple no problem closings. Just say, “I know your busy” ,even though you know he isn’t, and “I need you to make a few calls for me.”
Yolanda, I’ve been through a number of these run-arounds and no one is going to move till you start yelling, screaaming and showing up every day.
As a last resort, your attorney can file a “memorandum of sale” to cloud the title, even if you may have technically passed the “closing date”. I’ve done this. With this, it’ll be difficult for the seller to sell to somenone else if you drag your feet lifting the memorandum. If he’s looking to sell this quickly and buy the other house, closing with you would be a lot faster than bringing you to court about the “memorandum of sale.”
And Good luck!