Home Buying in 75074>Question Details

Frustrated, Home Buyer in Dallas, TX

We are under contract to buy a house. Loan officer pre-qualify us for a loan mortgage. FHA says we are not qualify. Loan officer will not call us back

Asked by Frustrated, Dallas, TX Sat Feb 5, 2011

3 yrs ago we foreclosed on a home. In Jan 2011 we met with a local loan officer and stressed to him about our concerns with our foreclosure and that we did not want to waste anyone's time. The loan officer assured us that our foreclosure would not be a problem and that we were pre-qualify for a mortgage loan. Our realtor also called him personally to make sure of our foreclosure and the pre-qualification prior to finding homes. Again, the loan officer reassured him that all was good. We just signed contract with the sellers and have planned to close on Feb 28th. We have already deposited the earnest $ with the title co, paid for an inspection and paid the sellers option fee. Now we are told that we cannot close on the 28th. He said its too soon. So we decided to get another lender. The 2nd lender tells us they can't pre-qualify us for a loan because FHA (they called directly) will not allow us to get a FHA loan until July 2011. Our loan officer wont call us back. What to do?

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Answers

21
First...very sorry this has happened.
I hate this.....loan officer should have known better.
This is typically of big money center banks who run through loan officers like squirrels go through nuts.
There are a few options....
1. See if you qualify for conventional for 80% with second from seller for 20%.
2. See if seller will postpone sell until July. Maybe you can rent to then.
3. I would start sitting in that bank, even with that branch manager seeing what they can do.
The longer you sit in their office the more chances they might be willing to do something.
Don't take no for an answer. You've been nice so far. They helped lead you down this path,
they need to lead you out. Maybe they can make it a portfolio loan until July. There are things they can
do if they really really want.
4. Any way for you to raise more cash and make it conventional. Sell cars, take title loans, sell assets,
borrow from 401k, borrow from family,
5. Get all the realtors and brokers involved....they need to put on their thinking caps to see how they
can try to help you make the deal work.
6. Please name the lender.....maybe some of us here have contact info for higher ups that we can provide.
7. We also need to know who the lender is so we don't use them or allow other buyers to use them.

Good luck.

Bruce Lynn
Keller Williams Realtors
Web Reference: http://www.teamlynn.com
1 vote Thank Flag Link Sat Feb 5, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
we were able to get a hold of our loan officer. he refuses to admit that he did us wrong. he says that it doesnt have to be 3 yrs with fha and that there is no way a lender will be able to get in touch with fha...is that right? im thinking he's an idiot! because the 2nd lender that couldn't pre-qualify gave us fha's num. good news we were able to get his boss' boss involved. we don't plan on getting a loan if we aren't qualified, we just want these loan officers dealt with so that other families won't have to go through this nightmare like us.

also, i was wondering, are branch mangers not aware of their mortgage office's location?? we went in and tried to speak with the branch manager that our loan officer worked out at and she said that his boss had no office that he worked out of and does not have that information? i think she lied to us because when we called his number, a receptionist answered and it turned out it was just down the street from the bank.
0 votes Thank Flag Link Mon Feb 7, 2011
Get with Tom. He's not going to steer you wrong. If you got with a couple of 'lemons' when it came to loan officers, you can rest assured that agents like me trust Tom's professional opinion. You may have just been mis-guided, or there may be another loan that suits you better.
Ronda
0 votes Thank Flag Link Sun Feb 6, 2011
3yrs from the date the home was FORECLOSED.... As in the final date it was COMPLETED.
BK has nothing to do with it.

Date on the credit report should be the SAME date. If not, that can be corrected.

Agree with Robin.... A lot of bad loan officers hide at the banks.... they couldn't make it elsewhere.

And if you are getting your advice from loan officers at the big banks.... maybe that is why you keep getting different answers.



Tom Burris
Mortgage Banker
DallasLoanGuy.com
214-763-4629 cell/text/nights/weekends
tomburris@dallasloanguy.com
Lending all across the Great State of Texas!!
0 votes Thank Flag Link Sat Feb 5, 2011
Thank you Robin. That just makes me more angry that these loan officers in these large banks really don't have to follow any of these regulation. So much for going directly to a bank, and a bank of this size. Does anyone know a good/trustworthy real estate attorney that we can talk to about our problem? There's got to be something that protects customers from loan officers and banks that screw you over like this.
0 votes Thank Flag Link Sat Feb 5, 2011
Here lies one of the problems that our government has not addressed. There is a new regulation that loan officers have to register with a national system, however loan officers who work for depository lenders and credit unions are exempt. So, we have ended up with numerous loan officer who work for that kind of bank, such as Bank of America, who do not have to go through the rigorous process of licensing, and they don't have to do any continuing ed. Also, when you go into a bank branch and speak to the branch manager, they really have nothing to do with the loan officer who sits in their office. They are working for the mortgage arm of the bank, which operates totally separately.
Hopefully, this will all work out for you. It is understandable that you are frustrated, as I am sure that you felt that going to a bank directly, especially one like Bank of America, you would not have a problem.
0 votes Thank Flag Link Sat Feb 5, 2011
we went through bank of america. we know that they screwed up and we will probably not see our option fee and inspection money returned. we are just frustrated that there are loan officers out there that just don't know what they are doing and don't care to take the time to verify everything for their clients. at this time we have no choice but to wait until we can qualify. the question is, when?? because we foreclosed our house and filed bankruptcy(chapter 7), no one can truly tell us when we would qualify. it seems no one is up to par with any of this information. we filed our mortgage loan in with our bankruptcy, so do we go off of the bankruptcy date or the foreclosure date? if it's the foreclosure date, how do we know what that date is. some loan officers are telling us we have to wait 3 years after the bankruptcy date because we filed the mortgage loan in with the bankruptcy. Others are saying 3 years after the foreclosure date. They are also saying the foreclosure date is from the date found on the credit report and some are saying its the date the foreclosure claim was paid out. we are just confused and extremely frustrated because it seems no one knows what they are doing and everyone is saying something different all of the time. please help clarify this for us.
0 votes Thank Flag Link Sat Feb 5, 2011
It sounds like your loan officer did not do his homework. Generally it can take up to 7-years to clear a foreclosure off your record to allow you to qualify for a mortgage. There is a mortgage contingency in your contract, so you should be able to get your earnest money back. If you are in an area which uses Real Estate Attorney's you should get this done right away. If you were using a Real Estate Agent for the purchase, he or she should have done some checking before you put in the offer. The rules for consumers qualifying for a mortage have been tightened significantly in the past year, due to the volume of foreclosures on the market.

I would encourage you to speak with a 'reputable' lender who offers FHA Loans to determine the exact guidlines you need to follow to qualify for a loan in the future.

Best of luck,
David Jaffe-SRES, CDPE
Realtor-Coldwell Banker
0 votes Thank Flag Link Sat Feb 5, 2011
Also......

With regard to the option fee and inspection report charges, why don't you try billing that to the loan officer /bank and the manager of the bank every 30 days.

So sorry you ran into this problem
0 votes Thank Flag Link Sat Feb 5, 2011
This is a tough one... would it be possible to rent the property (and close in July)? I would get a letter in writing from the first lender as to why they changed their mind about the prequalification. If you can't get the financing and the contract stipulates the contract is void if you cannot obtain financing then you should be able to get your earnest money back. The inspection fee will be a loss- perhaps the seller will purchase the inspection report from you (??????). Not an easy situation. Would the seller be willing to do owner financing for six months until you get the loan? Best to talk to an attorney in these types of situations. Ask your realtor to recommend a real estate attorney.

Best of luck
0 votes Thank Flag Link Sat Feb 5, 2011
Frustrated,
It's so sad to hear stories like yours. I hope that you find the answers you are looking for with the loan officer or their direct supervisors. However - you will want to speak with your Realtor to make sure that you understand all of your options under the terms of the contract. If you get approved with this lender (or another one) will you be able to close on time? Will you be able to get an extended closing date? If you cannot get qualified for financing and the contract terminates you should be able to get your Earnest Money back - but you will want to clarify that with your Realtor. It's very unlikely that you will get any money back for anything else that you have spent (option fees, inspections, credit report fees, other lender fees, moving expenses, etc.)

Good luck with your situation - keep trying to find out what the problem is with the lender and what you could possibly do to correct it (if not for this house, at least for a home you may want to purchase in the future).

Melissa Hailey
Coldwell Banker Jane Henry Realtors
North Texas Top Team, Realtors
214-418-0180
Melissa.Hailey@ColdwellBanker.com
0 votes Thank Flag Link Sat Feb 5, 2011
Talk to your realtor about the earnest money. Most contracts have a finance clause to protect you.

Option & inspection are gone... not getting it back.

What was the final 'Foreclosed' date on old house?



Tom Burris
Mortgage Banker
DallasLoanGuy.com
214-763-4629 cell/text/nights/weekends
tomburris@dallasloanguy.com
Lending all across the Great State of Texas!!
0 votes Thank Flag Link Sat Feb 5, 2011
Dear Frustrated,

As a lender myself for the last 13+ years, stories like yours completely infuriate me. I don't want to go off on a rant but the Pre-Approval process is one of the most crucial parts of the home buying process because that is where all of the clients issues must be addressed before anyone everyone proceeds. The point of the Pre-Approval process is to diffuse any bombs before they go off later on in addition to determining your buying ability.

You may be able to get an exception to the 3 year rule if the foreclosure was the result of extenuating circumstances and you have established positive credit since the foreclosure. I must stress, that is a big MAYBE.

What was the reason for your foreclosure?
What are your credit scores now?
0 votes Thank Flag Link Sat Feb 5, 2011
thank you all for your responses. we went in to speak with the branch manager and it turned out that she is not his manager and therefore was not able to help us. We asked to speak with his reporting manager and was given a name and number. No office nothing. The branch manager said that she did not have any access to the loans and therefore could not pull our info and that there was nothing she can do to help us but to wait for our loan officer to call us. We stressed to her that we are in contract and that the last date back out is tues. Got no help from the branch manager. so we left vms with the reporting mgr to call us back but we have not heard from the mgr or the loan officer. As i mentioned, our last date to back out from the contract is this tues. we also have already put in our leave notice to our apartment because we were anticipating to close on the 28th. If we can't find a lender to close the deal for us, can we get our money back for the option fee, earnest $ and inspection? I mean, this should have been prevented if the loan officer did his job in the first place.
0 votes Thank Flag Link Sat Feb 5, 2011
This is one of the reasons why realtors like you to use their recommendation. They know who knows their stuff, and who doesn't. Who will tell them the truth about whether the person can qualify. There are assorted reasons why you might not qualify, one being the date that the home was actually foreclosed. It also could be that your credit is only borderline, and the destop underwriting system may not approve you regardless of the time.
Aside from that, Steven, I am sure if you check the Trulia guidelines you will see that you cannot post the kind of message you have.
0 votes Thank Flag Link Sat Feb 5, 2011
I would check your third party financing form you should have signed with the contract. Check the date on there to make sure you are still in the timeframe indicated. If your financing falls through and you are still within the time frame you can at least get your earnest money back. Chirs Goodman with W.R. Starkey has saved many of my deals when other lenders could not.
0 votes Thank Flag Link Sat Feb 5, 2011
It may be due to the weather last week, but sadly, that is still no excuse with technology. I would try the supervisor first. If that does not yield a resutl, there are many reputable loan officers out there. Your Realtor should be able to refer you to someone.
0 votes Thank Flag Link Sat Feb 5, 2011
Can you do a conventional loan? Or wait till 7/11

Many unanswered questions not part of transaction could be "he said she said"...

If you can't reach the loan officer determine who is in charge. Due to weather many were not working here in Dallas over past week wait till Monday move forward with calls.




Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Feb 5, 2011
Your first step is to contact their supervisor or broker as Anna mentioned.
0 votes Thank Flag Link Sat Feb 5, 2011
Sounds like the foreclosure date was July 2008. If so, then you have to wait until July 2011.
These are the loan guidelines.

The foreclosure process takes time, and many think the 3yrs has expired when it really hasn't. The lender goes off the 'Foreclosed' date not the date it went INTO 'foreclosure'.

The 1st loan officer should have done their due diligence.

Sadly, we still have too many 'Yes Men' in this business.... the type that say 'Yes' to get you in the door to only not be able to figure out how to get the deal done in the end.



Tom Burris
Mortgage Banker
DallasLoanGuy.com
214-763-4629 cell/text/nights/weekends
tomburris@dallasloanguy.com
Lending all across the Great State of Texas!!
0 votes Thank Flag Link Sat Feb 5, 2011
If your loan officer is not returning your calls, consider contacting his/her supervisor and express your concerns--then go from there.
0 votes Thank Flag Link Sat Feb 5, 2011
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