topic Re: Loan fell thru week before closing in Mortgage Loans

Loan fell thru week before closing

Anonymous — Tue, 10 Jun 2014 21:16:01 GMT

We've been working with a broker since April and just found out today that after getting a preapproval then approved with conditions the lender does not feel comfortable making the loan. The reason given is because DH owes a considerable amount to IRS although we have been making timely payments for 12 months. Per lender, his mid score is 692. There is NO lien.

I'm not able to be added to the loan. Anyway, we were supposed to close 6/19 until we got the devastating news this morning that it isn't happening. The broker has submitted the app to another lender.

We are on pins and needles and not feeling real hopeful right now. Has anyone else had to switch lenders at the last second and made it to close? What's a realistic time frame to close IF the new lender can do the loan. I'm just wondering if I need to just start looking for a rental.

Re: Loan fell thru week before closing

duckster — Tue, 10 Jun 2014 21:19:54 GMT

Sorry to hear of your troubles. Hang in there, it will work itself out in the end.

Re: Loan fell thru week before closing

Anonymous — Tue, 10 Jun 2014 22:02:19 GMT

Your chances are still good there are a lot of lenders out there. But your close date could slide? Don't lose hope just yet. But you could possibly end up with a higher rate as well so you need to think about that as well it may be worth it to wait?

Re: Loan fell thru week before closing

Anonymous — Tue, 10 Jun 2014 22:36:07 GMT

Thanks for the responses. We are trying to hold onto hope. If the rate goes up it would be ok as long as the loan would still work. DH has an excellent DTI ratio now after paying off a lot of things prior to the application. I sure hope the new lender is ok with his file.

Re: Loan fell thru week before closing

ezdriver — Tue, 10 Jun 2014 23:04:44 GMT

Your disappointment and frustration of this news are understandable. Hang in there. Let the broker work for you. There is a decent chance that the broker will find you another lender. I feel your pain to some extent because I am waiting to hear the final decision from underwriting. The underwriter has been demanding more and more documentation regarding taxes/W-2s going back to 2008. I spent 4 hrs today at the IRS getting printouts that will hopefully satisfy my underwriter. I already told my wife that we may need to pass on our almost constructed new house and try again next year. You are not alone.

Re: Loan fell thru week before closing

Anonymous — Wed, 11 Jun 2014 01:28:57 GMT

@ezdriver, I hope you get final approval and get to close on your loan.

Thanks for your reply. I'm trying to hang in there and hope our broker can get this loan. I don't think I'd feel this bad if we hadn't waited this long.

Re: Loan fell thru week before closing

EW800 — Wed, 11 Jun 2014 02:15:19 GMT

So very sorry to hear about this. I know that is a big letdown.

As others mentioned, I would not be surprised if your broker is able to find another lender that will get this back on track.

Please keep us updated!

Re: Loan fell thru week before closing

bdhu2001 — Wed, 11 Jun 2014 03:45:18 GMT

@Anonymous wrote:
We've been working with a broker since April and just found out today that after getting a preapproval then approved with conditions the lender does not feel comfortable making the loan. The reason given is because DH owes a considerable amount to IRS although we have been making timely payments for 12 months. Per lender, his mid score is 692. There is NO lien.

I'm not able to be added to the loan. Anyway, we were supposed to close 6/19 until we got the devastating news this morning that it isn't happening. The broker has submitted the app to another lender.

We are on pins and needles and not feeling real hopeful right now. Has anyone else had to switch lenders at the last second and made it to close? What's a realistic time frame to close IF the new lender can do the loan. I'm just wondering if I need to just start looking for a rental.

Hang in there. I so hope this works for you and that you get approved by the other lender. Your situation is my fear. I keep reading on the internet of people being pre-approved, but the loan falling through. Good luck to you!

Re: Loan fell thru week before closing

Anonymous — Wed, 11 Jun 2014 11:27:17 GMT

Earlier in the process I was reading on the internet about others in similar situations. It was my worst fear too. I'm hoping that the broker and this new lender can work magic for us. Otherwise, we will need to find a place to live (living in a temporary place now) and I don't think I have it in me to ever try again.

Good luck to everyone else and please send positive vibes this way.

Re: Loan fell thru week before closing

guykara — Wed, 11 Jun 2014 12:19:05 GMT

If you don't mind me asking, how much in taxes are owed? I'm on a monthly payment plan with the IRS too, so just curious.

Re: Loan fell thru week before closing

fishbjc — Wed, 11 Jun 2014 15:53:44 GMT

One lender says NO, another says YES. Just keep on keepin' on.

The thing that troubles me is: if they knew about the IRS payments BEFORE they pulled the loan, that's BS.

Re: Loan fell thru week before closing

Anonymous — Wed, 11 Jun 2014 17:43:37 GMT

The amount is a lot. It's about $15k, but DH has been chipping away it. We hadn't planned to buy a house quite so soon, but due to circumstance we thought we could get in a house and start doubling up and addressing
this debt.

@fishbjc, that's the troubling thing and most upsetting about this situation. The lender knew about the payments. We were completely upfront and disclosed everything. We'll keep plugging away.

Re: Loan fell thru week before closing

Jazzzy — Wed, 11 Jun 2014 18:35:08 GMT

That is the most frustrating part...that the lender KNEW about this from the start. So why wait so long to let you know?

We are still waiting for final word on a closing that was supposed to happen Jun 1. Just last week I'm sitting at one of my jobs and a request came through for vereification of my employment. Why wasn't the lender on this about 5 weeks ago?

I am of the opinion that closings are "optional" as far as lenders are concerned. And closing dates don't matter at all. All this after they've taken your money.

Re: Loan fell thru week before closing

Anonymous — Wed, 11 Jun 2014 18:50:15 GMT

Jazzzy I'm sorry to hear you are waiting to find out if you can close. So incredibly frustrating. There's gotta be a better way.

I'm fully aware that there's a lot on the line for an underwriter and that this is merely a real estate transaction at the moment, but it makes me sick. I'd gladly wait 45-60 days for a true FULL underwrite if it meant that things like this could be avoided. I feel bad that we may have inconvenienced so many people.

I'm not giving up hope, but I know it can go either way right now.

Re: Loan fell thru week before closing

juggalo9er — Thu, 12 Jun 2014 02:35:38 GMT

what i find hard to believe is that the broker did not have any inclinaton that it even might be an issue,,,,,,aren;t they paid to know?

Re: Loan fell thru week before closing

Anonymous — Thu, 12 Jun 2014 02:53:01 GMT

^^ yeah I thought the broker should have maybe had an inclination, but I don't know. I think the underwriter decided they just didn't want the loan and backed out at the last minute. It sucks for us of course, but we went into this thing knowing something like this could happen.

Hoping to hear from the Lender #2 soon. Everything has been signed and submitted. We are keeping our fingers crossed and praying.

Re: Loan fell thru week before closing

Jazzzy — Fri, 13 Jun 2014 01:01:33 GMT

@Anonymous wrote:
Jazzzy I'm sorry to hear you are waiting to find out if you can close. So incredibly frustrating. There's gotta be a better way.

I'm fully aware that there's a lot on the line for an underwriter and that this is merely a real estate transaction at the moment, but it makes me sick. I'd gladly wait 45-60 days for a true FULL underwrite if it meant that things like this could be avoided. I feel bad that we may have inconvenienced so many people.

I'm not giving up hope, but I know it can go either way right now.

We got a big surprise today....the bank told us they "really screwed up" and needed an additional $125,000 down in order to cllose. They approved us for $525k and now want to only loan $400k.

We can (and will) do it, but only with the help of a few relatives on a short-term basis. We now have a few gift letters flying back and forth.

When we questioned...once again...why this was just coming up NOW, that's when they finally said "we really screwed up." They finally didn't have any more lame excuses. It simply was a case of him having the facts in front of him weeks ago and not even sitting down to look at them until AFTER the designated closing date. No excuse other than he didn't do his job in a timely manner.

I'm old enough to remember the day when the customer and customer relations meant something. Not any more. No brick and mortar banker should ever wonder why the public has started to flock to mortgage brokers. Sitting across the desk from your banker...shaking hands and having him give you his blessing (and approval)...means nothing. Nothing.

And yes, I realize how lucky we are that we, with the help of our family, can pull this together. We have another house to sell and then will put permanent financing on the new one. And the banker even gave us a pitch today hoping to do our permanent financing. My husband was a bit dumb struck and said, "Not sure that's going to happen."

Re: Loan fell thru week before closing

mccallb — Fri, 13 Jun 2014 01:28:22 GMT

15K worth of debt mattered when you're buying a half a million dollar house?

What gives? Is your dti really high? I'm confused as to how it got so far and then at the last second they changed their mind.

I actually owe the IRS around 25K and am trying to buy a 288K house right now. Going tomorrow to sign paper work for first underwriting in fact. (Building)

Re: Loan fell thru week before closing

StartingOver10 — Fri, 13 Jun 2014 01:32:43 GMT

Jazzzy, I'm sorry to hear your LO didn't do his job.

The LO's in retail banks are not like they used to be - more like application takers and not knowledgeable of underwriting procedures at all. It is frustrating for everyone all around. Fortunately you have resources to tap into at the very last minute. It would have been an automatic 'no' for many with a condition of an extra $125,000 down.

Re: Loan fell thru week before closing

mccallb — Fri, 13 Jun 2014 01:34:02 GMT

SO: Out of curiousity, what happens to the good faith money if something like this falls apart?