topic Re: Mortgage Journey Nightmare in Mortgage Loans

Mortgage Journey Nightmare

Sassy_Taurus — Sat, 19 Mar 2016 12:43:20 GMT

I've waited 3 years for my chance to own my own home. January 6, 2016 marked my 2 year anniversary after chapter 7 discharge. Getting the approval from DU felt like I had won the lottery for my family. But all that soon changed. I saw 13 homes before I found one that would fit my family. Put a offer in and started going back and forth with the seller before it was finally accepted. Appraisal was done and came back $5k lower than my offer. The seller refused to lower so I cancelled escrow. One week later I'm notified that the seller will lower if I'm still interested catch is they no longer will offer the $3k seller credits and they want $1k above appraisal. I figured the $1k was less than 1% and in my opinion it was worth it. Non of the comps used were equal to the home. There was issues with which realtor to use so that was finally resolved. I go back into escrow Monday and find out Thursday that I now need $4k in reserves (something that I did not previously need).

This whole experience has been overwhelming. I knew that it would not be super easy but I would never have thought that I would have encountered all of this. If my children were not looking forward to a home of their own I would give up and just rent until the end of time.

My realtor has suggested that I contact another Lender that had also preapproved me. I'm told that they do not have a reserve overlay. To make matters worse I was hit with a medical bill from when my employer cancelled our benefits. SMH. I'm having the worst luck and just feel like buying a home is just not meant for me. My hat goes off to anyone that's been through this process of buying a home and actually closing.

Thanks guys. I just needed to vent.

Re: Mortgage Journey Nightmare

Mrsg714 — Sat, 19 Mar 2016 13:14:39 GMT

I'm sorry you're going through such a rough time. This definitely isn't the easiest thing to do, but it'll be so worth it. I agree that you should find another lender without the reserve overlay. I am stressing over this process right now as well, but all I can do is pray and get all the documents that my lender is requesting. We are now trying to go through the list of repairs from inspection to find out what needs to be addressed for FHA appraisal. I pray that the seller is reasonable. Anyway, good luck to you. It helps to vent sometimes so vent away!

Re: Mortgage Journey Nightmare

Sassy_Taurus — Sat, 19 Mar 2016 13:37:10 GMT

Thank you mrsg714. I hope that your seller is reasonable and will fix what's needed so that their home passes fha requirements.

Re: Mortgage Journey Nightmare

GirlMelanie89 — Sun, 20 Mar 2016 00:37:44 GMT

I am so sorry Sassy! This is terrible! Absolutely horrible. But remember anything worth having is worth fighting for. But at the same time, your sellers suck. It's not your fault that they overpriced their house. I wish they were more realistic and reasonable. Especially since you've been so patient. But at the end of the day, go with your gut.

Re: Mortgage Journey Nightmare

Sassy_Taurus — Sun, 20 Mar 2016 02:37:02 GMT

GirlMelanie89 this is truly a fight lol. I love the home and it feels like home. I'm just hoping that this medical collect has not dropped my fico to where I no longer qualify. The CA is willing to do a pfd so I'm thinking of paying and extending closing so that I can replace the money used to pay the collection. On Monday I'll speak with a LO to see what my options are at this point.

I actually think the house should have appraised at the seller asking price. The comps used for the appraisal were all 3 bedroom homes. A 4 bedroom house 2 streets over just sold for $171k and is not as nice as the one I'm buying.

Re: Mortgage Journey Nightmare

GirlMelanie89 — Sun, 20 Mar 2016 03:34:29 GMT

@Sassy_Taurus wrote:
GirlMelanie89 this is truly a fight lol. I love the home and it feels like home. I'm just hoping that this medical collect has not dropped my fico to where I no longer qualify. The CA is willing to do a pfd so I'm thinking of paying and extending closing so that I can replace the money used to pay the collection. On Monday I'll speak with a LO to see what my options are at this point.

I actually think the house should have appraised at the seller asking price. The comps used for the appraisal were all 3 bedroom homes. A 4 bedroom house 2 streets over just sold for $171k and is not as nice as the one I'm buying.

Well, it will work out. Yes, that collection will definitely need to come off ASAP. Will your LO pull your scores again? But that sounds like a good idea. If you can get the CA to provide you a pfd letter, you can send that directly to the credit bureaus and they shold remove within 24-48 hours. Keep us posted and Im praying you get the house of your dreams really soon!!

Re: Mortgage Journey Nightmare

meljeff1 — Sun, 20 Mar 2016 12:37:59 GMT

Sassy I had to sign in and let you know your not alone. We are supposed to close on Friday the 25th when my broker calls me to say FHA denied your loan because of income. Basically they won't pay our down payment. You and your partner make too much!!!!!!! Initially we started this process in Sept of 15 so at that point we were right at the edge. He received a promotion like in Nov or Dec and it didn't even dawn on us that it could/would be an issue. We just walked the house this past Friday and I'm so upset. So basically we have to come up with 5k to get our home . We are hoping a uncle of his will gift us the money so we are going to talk to him today!!!! I want to give up to. I hope your situation gets rectified....

Re: Mortgage Journey Nightmare

StartingOver10 — Sun, 20 Mar 2016 13:11:57 GMT

^^^Meljeff1, FHA doesn't turn down files - lenders do. FHA doesn't pay down payments for borrowers: down payment assistance programs pay the down payment but there are very strict guidelines to qualify. FHA is a type of loan that is insured by HUD to allow lenders to make a high LTV type loan that meets certain criteria. Without meeting the minimum criteria, the loan can't be insured against default. Each lender has their own overlays - some more than others.

It sounds like you were going for a down payment assistance type program, right? If so, you are right about the income limitations. The programs I have seen in my area are very, very specific regarding income - you can't be over the maximum limit by even a dollar. I have found that when you are getting involved with a down payment assistance type program the overlays are huge....JME.

What surprises me is that your LO should have notified you immediately when your partner received a raise that put you over the limit back in November 2015.

You might actually be lucky about not getting the down payment assistance. From what I have seen some of the programs have much higher closing costs and in some instances have higher interest rates. Have your lender provide another LE for you since the program is different for a straight FHA from a down payment assistance type program.

Re: Mortgage Journey Nightmare

meljeff1 — Sun, 20 Mar 2016 13:37:35 GMT

Starting Over you are correct! I'm so frustrated right now!

Re: Mortgage Journey Nightmare

meljeff1 — Sun, 20 Mar 2016 13:38:36 GMT

I will check wig him tomorrow! I will keep everyone posted and I will make a new thread when I have info! So I'm not taking over your thread sassy!!! 😉

Re: Mortgage Journey Nightmare

Sassy_Taurus — Sun, 20 Mar 2016 14:15:34 GMT

Meljeff1 no worries about the thread. In sorry to hear about what your going through. For you to be so close and find out that it's a no go on the down payment assistance must really be hard. I really hope that you can get the $5k gifted and save your loan. Don't give up your to close to the finish line.

Re: Mortgage Journey Nightmare

Alljada22 — Sun, 20 Mar 2016 16:43:49 GMT

Hello all,

Same situation happened to me as well, applied for a down payment assistance with North Carolina what they required is middle score 640 or over and income can not be over their required amount. You also must count every one who is over 18 who will live in the home there income as well. It's me and my son. We had to submit his w-2 and 3 years tax returns and paystubs as well. Went thru the process the lender stated that both incomes were close but under their min. Well low and behold the lender cleared the loan but once the loan went over to the downpayment assistance they denied stating our incomes was over. I was dumb founded. I was told that now I would need to pay the 3.5 % downpayment. I was not prepared to have 3.5% down payment so I asked my mother for the differance that I needed. I'm scheduled to close on 3/22. Yay!!. I'm also 2 years post Chapter 7. This process has been trying and stressful. But I will finally be a home owner. Good Luck to everyone and dont give up the fight.