Closing of Escrow-Housing Loan

[akodiet 0]

Closing of Escrow-HELP

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Good Morning to everyone. My husband and I been trying to purchase a house and to be able to that we applied for housing loan to one mortgage company. The mortgate banker informed us how much we are approved. My husband only starting to build his credit and also he has past collection agencies on his FICO report but all have been paid off. Now the mortgage banker informed us about how much we are approved deliberately we tried looking for the house that fit the loanable amount, then when we found the house and presented it to the loaning company the banker said he made a mistake and then again he gave us another amount lesser to the one that he had given us, desperately my husband really wanted a house because he is tired of renting apartment for $1400 a month so we begun searching again house cheaper than the one we like, now processing has been made, its almost 3 months our loan was not release and our loan keeps on being approved,denied,suspended,approved,denied,suspende d,pending then they require us to pay certain downpayment which total to $6,500 so we paid everything and then still our loan is suspended. the seller is getting mad with us and we dont know what to the mortgage company keep on hanging us up, last week he said that the closing of escrow is already on the scheduling process and then came this week we followed up they say that there was a problem with our bank statement they say my husband wont make much...I dont understand, before we apply the loan they have screened everyhting and they have inform us we were approved thats why we desperately search for a cheaper house at least a start so it'll fit my husband income and now they are saying that we lack requirements that we dont have much "RESERVE" on our bank....they should have never informed us that we were approved so we did'nt have to make the downpayment......if there is someone who is a real state lawyer please help us....we cant lose the money.....

[Dan J 277]

Closing of Escrow-HELP

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Good Morning to everyone. My husband and I been trying to purchase a house and to be able to that we applied for housing loan to one mortgage company. The mortgate banker informed us how much we are approved. My husband only starting to build his credit and also he has past collection agencies on his FICO report but all have been paid off. Now the mortgage banker informed us about how much we are approved deliberately we tried looking for the house that fit the loanable amount, then when we found the house and presented it to the loaning company the banker said he made a mistake and then again he gave us another amount lesser to the one that he had given us, desperately my husband really wanted a house because he is tired of renting apartment for $1400 a month so we begun searching again house cheaper than the one we like, now processing has been made, its almost 3 months our loan was not release and our loan keeps on being approved,denied,suspended,approved,denied,suspende d,pending then they require us to pay certain downpayment which total to $6,500 so we paid everything and then still our loan is suspended. the seller is getting mad with us and we dont know what to the mortgage company keep on hanging us up, last week he said that the closing of escrow is already on the scheduling process and then came this week we followed up they say that there was a problem with our bank statement they say my husband wont make much...I dont understand, before we apply the loan they have screened everyhting and they have inform us we were approved thats why we desperately search for a cheaper house at least a start so it'll fit my husband income and now they are saying that we lack requirements that we dont have much "RESERVE" on our bank....they should have never informed us that we were approved so we did'nt have to make the downpayment......if there is someone who is a real state lawyer please help us....we cant lose the money.....

Sounds like the mortgage broker was less than reputable. Otherwise, may be having trouble keeping the bills paid due to the downturn in the mortgage market.

Your not going to find the kind of lawyer you need here. But this should help: http://www.lawyers.com/

[Fandango 1,440]

Sounds like the mortgage broker was less than reputable.

I thought that myself.

AKO, what does your realtor say about all this?

[russ 1]

Sounds like the mortgage broker was less than reputable.

I thought that myself.

AKO, what does your realtor say about all this?

Closing less-than-prime mortgages has been difficult for the last few months, as many mortgage banks simply cannot fund them. No one wants new subprime debt on their books.

It may be smarter to improve your credit and wait a while before getting a mortgage. You really need to have a FICO score close to 700 (650+ is probably okay). If not, you will be paying many thousands of dollars MORE than you would be renting, or with a prime mortgage.

I wouldn't blame the mortgage broker necessarily. The banks have been changing their terms on a nightly basis, and walking away from deals they have already agreed to.

Ideally, you should plan to get a 30 year fixed 10% down mortgage. This is the safest and cheapest way to go.

[Dan J 277]

Sounds like the mortgage broker was less than reputable.

I thought that myself.

AKO, what does your realtor say about all this?

Closing less-than-prime mortgages has been difficult for the last few months, as many mortgage banks simply cannot fund them. No one wants new subprime debt on their books.

It may be smarter to improve your credit and wait a while before getting a mortgage. You really need to have a FICO score close to 700 (650+ is probably okay). If not, you will be paying many thousands of dollars MORE than you would be renting, or with a prime mortgage.

I wouldn't blame the mortgage broker necessarily. The banks have been changing their terms on a nightly basis, and walking away from deals they have already agreed to.

Ideally, you should plan to get a 30 year fixed 10% down mortgage. This is the safest and cheapest way to go.

I was thinking that was the other possibility, But I didn't know enough about the mortgage they qualified for.

If this is indeed the case, any you cannot get a prime mortgage, you may be limited to renting for the time being while you work on improving your credit. You may be able to find a cheaper place to rent, or possibly, try to find someone selling their house and see what kind of rate you can rent it for. If someone cant sell their house, they may be willing to take a rental to at least have some money coming in. And depending on the market, you may have the power to negotiate the rent in your favor.

[akodiet 0]

the first time the mortgage banker said we were approved of 250,000 loan, my husband FICO score was 650 then, then after we presented the house, he change suddenly the statement he said we can only loan for 150,000. we look so stupid cause we made a deal already with the real state broker. my husband really wanted the house so patiently he said that 150 was ok and we found a house that the was 109,000. as what i said we processed everything the mortgage banker even said that it is 100% financing so we never worried about the money. next thing we know when we paid the processing fee they ask for 5% down. so we produce the money and after producing it he said we wait for the schedule of closing...ITS BEEN TWO WEEKS ALREADY!!!!!!!!!! and yesterday he sent an email stating that there was a problem on the bank statement, it doesn't show "STUPID RESERVE". and that we might get a denial. CAN I SUE THEM FOR THIS? setting us hope and everything after paying the money they deny us/......

Sounds like the mortgage broker was less than reputable.

I thought that myself.

AKO, what does your realtor say about all this?

Closing less-than-prime mortgages has been difficult for the last few months, as many mortgage banks simply cannot fund them. No one wants new subprime debt on their books.

It may be smarter to improve your credit and wait a while before getting a mortgage. You really need to have a FICO score close to 700 (650+ is probably okay). If not, you will be paying many thousands of dollars MORE than you would be renting, or with a prime mortgage.

I wouldn't blame the mortgage broker necessarily. The banks have been changing their terms on a nightly basis, and walking away from deals they have already agreed to.

Ideally, you should plan to get a 30 year fixed 10% down mortgage. This is the safest and cheapest way to go.

I was thinking that was the other possibility, But I didn't know enough about the mortgage they qualified for.

If this is indeed the case, any you cannot get a prime mortgage, you may be limited to renting for the time being while you work on improving your credit. You may be able to find a cheaper place to rent, or possibly, try to find someone selling their house and see what kind of rate you can rent it for. If someone cant sell their house, they may be willing to take a rental to at least have some money coming in. And depending on the market, you may have the power to negotiate the rent in your favor.

[Fandango 1,440]

Sounds like the mortgage broker was less than reputable.

I thought that myself.

AKO, what does your realtor say about all this?

Closing less-than-prime mortgages has been difficult for the last few months, as many mortgage banks simply cannot fund them. No one wants new subprime debt on their books.

It may be smarter to improve your credit and wait a while before getting a mortgage. You really need to have a FICO score close to 700 (650+ is probably okay). If not, you will be paying many thousands of dollars MORE than you would be renting, or with a prime mortgage.

I wouldn't blame the mortgage broker necessarily. The banks have been changing their terms on a nightly basis, and walking away from deals they have already agreed to.

Ideally, you should plan to get a 30 year fixed 10% down mortgage. This is the safest and cheapest way to go.

Of course it's difficult....but there's still a difference between a reputable lender who says 'no we can't help you right now, this is what you need to do to increase your credit score' and a bad lender who will string ppl along saying 'sure I can help you' and then it's a yo-yo of yes, no.

I'm not saying that's the case here, as even the best of deals sometimes have issues from the underwriter, but at the same time, something smells wrong here.

Edited September 14, 2007 by LisaD

[Jasman0717 9]

Funny, after reading your story (and without looking at your profile) I was thinking that you were in California You could talk to the loan officer at Absolute Mortgage in Tustin, she was super for me.

http://absolutehomeloans.com/

[Mr. Big Dog 10,747]

next thing we know when we paid the processing fee they ask for 5% down. so we produce the money and after producing it he said we wait for the schedule of closing...ITS BEEN TWO WEEKS ALREADY!!!!!!!!!!

All I remember paying prior to closing was the earnest money deposit which is commonly part of making the offer. Everything else was done at closing. You should not have to produce a down payment prior to closing.

[rebeccajo 14]

Sounds like a sub-prime lender to me.

Is the deal still alive? If so, get your realtor to work with you on solving the mystery. It's not just their job to FIND you a house - it's also their job to help you GET IN the house.

You ask if you can sue the mortgage company. Do you have the money to spend on a lawyer? If so, this is how I would spend my lawyer dollars -

Phone your State Bar Association. Ask for an attorneys within driving distance of you who practices civil law and also sits on the Ethics committee. Make an appointment with that attorney, and see what he or she has to say.

Just remember that lawyers usually don't work fast (because the system doesn't) so if time is of the essence this may not be your best option.

Edited September 15, 2007 by rebeccajo

[desert_fox 32]

do NOT prepay any fee outside of escrow. This is a scam. They will get your money and you will never get a loan. Any reputable lender knows that all of these details are handled by the escrow and title company, and all funds are disbursed at closing.