I'm guessing that your loan agent is:
1) too busy to pay close attention to your particular issues
2) buried with refinances and taking the easy path
3) new in the business and not able to handle a complex situation
4) stalling for time until they find some lender (at higher rates and fees) that will approve you
5) afraid to tell you that they were mistaken in the beginning about your qualifications
This is not to say that in general, loan agents are not good at customer service. Most are excellent and are superb problem solvers. Rates are so low and so many lenders are competing for business right now that you may have used a loan broker who promised more than they can deliver. It is commonplace for a buyer to gravitate towards the cheapest rate, the lowest cost terms, rebates, etc. These factors alone do not put you in the hands of the most competent person to help you. In other words; you get what you pay for.
It may work out if you have a higher down payment and put some pressure on the loan broker, their manager, your agent, their manager, etc.
Get a really good local real estate attorney. Not the cheapest, not a friend, not someone who knows some things about real estate, not someone who practices outside Silicon Valley; a good real estate attorney.
Mark Burns, RealtorÂ®
Coldwell Banker Elite - Top 2% Worldwide, Top 100 Northern California
President - PRDS, Contracts and Forms for Silicon Valley Residential Real Estate 2008-2012
DRE #00896552 Licensed since 1985
Over 600 homes Sold in Silicon Valley
There are some banks who can do loans quickly, but it sounds like you may have a problem that is going to be hard to overcome. Joel Spolin at Spoloan may be able to help you quickly. The Private Mortgage Banking at Wells Fargo is pretty quick as is Princeton Capital.
Again, call a lawyer to see what your legal options are, but you should also speak to another lender to see if you actually do qualify for a loan or not. I would not go to another broker, you need to speak with a bank directly, or a mortgage banker, not a mortgage broker. They are not the same thing.
Please let me know if you want any more info.
If you truly got bad advice, perhaps you should be made whole financially by the responsible party. Certainly worth discussing with the parties and their brokers who are involved.
Forfeiture of your deposit is not automatic and you should seek advice on how to avoid that loss. Mediation and/or arbitration may be in your future.
It may be necessary to seek legal advice.
I doubt that you will find a quick, clear and simple answer on a public forum.
The 3% deposit forfeit is not a guaranteed result for the seller. The seller may have to show that they suffered a loss equal to the 3%. As others have said, talk to an attorney.
Pursue getting a loan from other sources ASAP. The intent of the contract was that the seller wanted to sell the property to you and that you wanted to buy the property. Don't be the one who looks like you aren't trying to fullfill your contract obligations.
WIth all the bidding wars out there, it is tempting to get reckless. However, your agent should not promise something he/she can't deliver. I know your agent had good intentions, but if your agent does that too often, listing agents will think twice before accepting an offer written by your agent.
In your situation, your agent should be able to negotiate some way to get out without losing your entire deposit.
Just because your lender felt that you personally can qualify for the loan, doesn't mean that the HOUSE also qualified for the loan. This is an FYI for you and other buyers. When your lender states you are approved, ask for the written approval. You will find that there are Several conditions to that approval, the house, appraisal, preliminary title report, insurance, and so forth. It is not clear cut. If a Buyer is not in a position to lose their earnest money, they should not waive those contingencies until they have all the documents needed to support satisfaction of said contingencies.
I've recently seen another situation where the Buyer went in with zero contingencies, they stated they were going to pay cash, provided the verifications of funds, and guess what? They didn't close and tried to get a loan. Now they don't want to lose their earnest money. I have a hard time feeling sorry for them, except that they perhaps received very bad advice for their agent.
I know this isn't what you want to hear. And I don't intend to offend you. The purchase contract is designed to protect both Buyer and Seller. When they operate in good faith all turns out well.
Take the advice and talk with the managing broker and attorney.
I wish you all the best.
Yes, there is a chance you may lose your deposit. But for that there should be complete loss of good will from the sellers.
Sorry, but this will need professional legal intervention now.
Area Pro Realty-People's Choice