Loan Application

[Anonymous]

We applied for a $12,000.00 Home Equity loan with United Community Bank, where we have been a member for over 3 years. We have no liens or mortgages & the house is valued at about $240,000. We are both employed with an annual income of approximately $100,000. Our credit score is about 645. We were turned down for this loan because we have a Chapter 7 bankruptcy, that was discharged over 6 years ago. Our bank told us their hands were tied & that bank regulations prohibited our loan. We find this very hard to believe, is there anyway our bank could have used our equity as an overriiding factor, given the bankruptcy has been dicharged for over 6 years?

[StartingOver10]

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@Anonymous wrote:

We applied for a $12,000.00 Home Equity loan with United Community Bank, where we have been a member for over 3 years. We have no liens or mortgages & the house is valued at about $240,000. We are both employed with an annual income of approximately $100,000. Our credit score is about 645. We were turned down for this loan because we have a Chapter 7 bankruptcy, that was discharged over 6 years ago. Our bank told us their hands were tied & that bank regulations prohibited our loan. We find this very hard to believe, is there anyway our bank could have used our equity as an overriiding factor, given the bankruptcy has been dicharged for over 6 years?

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This is a bank overlay by your particular bank (these overlays can be more restrictive, not less), not a bank regulation at all.

Go to a mortgage banker - they do nothing but mortgages, which is what a HEL is - a home equity loan.  There are many that will finance you with a conventonal loan after 4 years.

[Anonymous]

This is exactly what I suspected, however, when I called the coporate office for United Community Bank, they insisted that ALL BANKS, were bound by the same REGULATIONS & they could do nothing NOR COULD ANY BANK. They never suggested a HEL. This is particularly disappointing because their denial hurt our credit again. We believe they could have helped us if they had wanted to, especially since we have been a member for over 3 years.

[StartingOver10]

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@Anonymous wrote:

This is exactly what I suspected, however, when I called the coporate office for United Community Bank, they insisted that ALL BANKS, were bound by the same REGULATIONS & they could do nothing NOR COULD ANY BANK. They never suggested a HEL. This is particularly disappointing because their denial hurt our credit again. We believe they could have helped us if they had wanted to, especially since we have been a member for over 3 years.

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I think that the best thing you could do is contact a correspondent lender/mortgage banker. Stay away from the big box banks as they are super conservative right now. It appears that United Community Bank falls into the more conservative catagory. If you want someone that can work with your situation, pm me.