Pre-approved for FHA through Wells Fargo then denied with 1 week left to obtain funding. HELP!

[911firegirl]

I didn't use Wells Fargo, but another highly recommended Lender. Found a foreclosure that is $50,000 below market, subimitted a lowball offer and seller accepted. My FICO 760. I put all the money requested down on the spot... and then Home inspections with Contractor Engineer - twice, Inspection with Structural Engineer (very expensive)  Appraiser - twice, Electrical Engineer, Water Quality Engineer, had to order copies of all original inspections and certificates from the recorders office regarding the previous owners, and made all the highly priced improvements, also had to push out closing twice, and now we are waiting for one more appraisal, and still may lose it, has anyone been through this and is there any advice or course of action we can take to recoup some of the thousands of dollars the lender had me dish out? and I received many letters stating I was approved and they were going to close this loan, so not to worry? 

[PMorg]

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@Anonymous wrote:

Good morning,

I was in your predictament about 3 weeks ago.  Actually, Wells Fargo came to my rescue and I was approved by their Exception Department and Underwriting in 7 days.  I was preapproved by Regions in Sept.  Found a 2nd HUD house and made a contract on 11/12.  After 2 months with Regions, they denied me, this was after they had me request a 15 days extension with HUD.  I took a deep breath and immediately contacted by recommendations of my agent, Wells Fargo.  The loan officer was great!  I closed in 2 weeks and 2 days after I switched and I have a foreclosure that is 3 yrs old and an outstanding judgment that I am making payments on. With Wells Fargo, I was told that I would be denied because if you have an paid or unpaid CO, that is automatic denied if it is less than 7 years old.  I have unpaid CO that is for $485 with Wachovia.  The LO decided to send it to the Exception Dept.  They approved and did not request for me to pay it off.  Now, in a couple of months, I am going to make good of it because they made it all possible.  I now owe 4500 sq ft home for $139k!!

Do you know why they are denying you?  If I can be of any help, let me know.

Diva

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CruiseLady2008,

How was your experience with the Exception Department?  We are currently awaiting their review because my credit score just passed their minimum required score.  I too was very honest with the LO about the negative items on mine and my husband's credit scores and even wrote a letter of explanation to go with the application.  We're scheduled to close in 3 weeks and this makes me nervous because we are set to vacate this house we're renting now too.  I can't believe WF would pre-approve us with these credit scores and knowing what's on our history but then now have to put us through the "exception" process when we are in contract.  Couldn't they do the exception during the pre-approval process?  Funny part is, the expected monthly morrgage payment is $500 less than what we've been paying for rent too.