mortgage broker backing out of deal - Posted by Ticked Off

Real Estate Investing Real Estate Financing
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Posted by tony on October 08, 2003 at 10:45:45:

(As far as me assuming that I deserve the world…well, why not? Who doesn’t want the best & most that you can get. Don’t you want the best for YOURSELF, and for YOUR family? And if you cannot get what you feel you deserve, would’nt you want a good reason why you could not get it, especially if you were reassured that there were no problems w/ your credit, score, nor debt ratio?…tiked off)

Sorry you are having a bad day.

I don’t deal with residential mortgage customers… they (like you) have been sold a bill of goods by the media and false advertising. I have explained to you what happened (perhaps not as gently as you would have liked) but never-the-less got my point accross.

ON one hand you praise your broker…and on the other hand you put him in the catagory of being a “liar.” I certainly wouldn’t want you for a client.

Structuring a NON-CONFORMING mortgage is an art. It takes a numerous deals before you get hang of it. Guidelines change and so do programs…often without notice. Lenders buy other lenders and the pipelines stop. Part oF life…NO GUARANTEES (SIC).

As far as wanting the world… and getting the world… that’s 2 different things!

I like the old Rolling Stones song… "You can’t always get want you want…but if you try sometimes…you just might find…you get what you need!

Dude…GET WHAT YOU NEED and MOVE ON!

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mortgage broker backing out of deal - Posted by Ticked Off

Posted by Ticked Off on September 28, 2003 at 18:59:38:

My situation is rather long & frustrating, but story short…

I was approved for 100% of my mortgage loan.
Placed a contract on a house, offer accepted, provided everything that was asked by the mortgage company, began packing and preparing for the move.
Projected closing was scheduled for tomorrow 09/29/03, and was contacted by my mortgage broker late last Wednesday afternoon that there was a problem w/ my credit.
He stated that one of my credit report items was 10 years old, and that I would not be approved for the 100% financing.

My question is this…

the mortgage broker has had my credit report for the past 2 months, assured me that all was fine, and that I needed no money down…now he claims that he did not know of the lenders rule of not being allowed to use a credit item that was 10 years old…should the broker have known the guidelines of the lender BEFORE my application was accepted and approved?
Can a broker and/or lender back out of a 100% approval contract this late in the game, and state that the consumer is now only approved for 90% of the loan this late in the game?

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Re: mortgage broker backing out of deal - Posted by ticked off

Posted by ticked off on October 01, 2003 at 20:10:40:

I have worked very hard the past couple of days to resolve my dilemma.

My lender is Decision One, and will now finance my loan for 95%. This is ok w/ me, but I wish I would of been prepared for this change. I could of been prepared a couple of months ago, when I began this whole process of buying a home. I could of pulled all of my resources together such as withdrawing part of my down payment from my 401k, etc. Now, I have to start that process from scratch. It is not always easy to get your hands on 401k money…it takes filling out the application, and also providing all of the necessary documents, such as the Sales Contract, and then waiting for the application to be reviewed & processed. It takes time to do this.
Fortunately, my Real Estate Agent is GREAT!!!
He has had my broker to prepare a letter, explaining the entire situation, and has requested an extension for the purpose of me receiving my 401k money.

I have gone a step further w/ demanding for my broker to forward to me ALL documents pertaining to this deal. Until yesterday, I had not even been provided a copy of the Sales Contract, Good Faith Estimate, nor my Approval Letter. This deal has been in the works for more than a month, and I had been given NOTHING!!! My broker was even trying to give me the run-around on telling me my new interest rate w/ this new 95% deal.

But, I now have the entire deal in writing.

Unless this broker really is a crook, which I cannot help but to question, because of what I have been put through thus far, I am still in high hopes that things will now work out (knock-on-wood).
My mind and nerves will not be at total ease until the day of closing, after all documents are signed, and the keys to the house are handed to me.

Thank you for all of the responses, and I will keep you all posted on the outcome.

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Re: mortgage broker backing out of deal - Posted by Dean Hansen

Posted by Dean Hansen on October 01, 2003 at 19:22:03:

Shouldn’t you have received a committment letter from the broker? If so, doesn’t that bind the broker/lender to the deal?

Dean

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Re: mortgage broker backing out of deal - Posted by tony

Posted by tony on September 29, 2003 at 17:27:23:

THis is one of the things that HUD is trying to prevent. Although, in my opinion, it will be VERY DIFFICULT to get a Mortgage Broker to finance a deal that he is trying to close through another bank (most mortgage brokers are not MILLIONARES).

The problem is, the super brokers (lenders that pose as mortgage bankers) sell the paper ASAP. They get paid when they sell. However, the market for this type of product (b/c paper) is SO COMPETITIVE…that super brokers are having a hard time getting lenders to purchase the paper on the secondary market due to guideline changes…

So, the super brokers, make ALL KINDS of promises to the brokers about NEW programs that have LITTLE or no chance of closing…then try to get the BROKER to switch the borrower into something else.

Its really sad because the broker’s reputation is on the line…NOT THE mortgage bankers.

Take my advice above… tell your mortgage broker to deal only with the TOP shelf b/c lenders.

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Re: mortgage broker backing out of deal - Posted by tony

Posted by tony on September 29, 2003 at 17:06:06:

The mortgage broker is not backing out of the deal. The bank he placed the loan with is…

Many of the riskier loans (100% financing) have stingient guidelines that make it almost impossible to tell whether or not a deal will actually close. On top of that, the Mortgage Bankers that actually buy and pool the loans change their guidelines based on past performance…

If you have a mortgage broker, tell him that you don’t want a loan with a NEW MORTGAGE banking outfit. Many of the Newer Mortgage banking firms that buy this paper are just super brokers who try to sell the paper on the secondary market and shave points to make their profit. STICK with the older lenders like Decison 1, BNC, Chase, etc.

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Re: mortgage broker backing out of deal - Posted by Michael Pine

Posted by Michael Pine on September 28, 2003 at 22:59:32:

Banks kill loans all the time, it is an unfortunate thing. I am not sure how much notice he received about this so will not trash him.

Many banks use an automatic underwriting to pre-approve deals, then a manual underwriter to process. The best advice I would have to give you would be to get an extension on the contract with the seller, and have your broker shop you around again.

If he is unable to get you the deal you want it may be time to find yourself another broker. If he is unable to get you your deal you may want to speak with another broker. In that case I would suggest getting your credit report from your broker and using it to get approved on so your credit is not run again. This way you may be able to shop around a little and have more people to get your deal done.

On another note, do not hold this against all brokers, I know I always try to tell my customers everything as soon as I have the information and hopefully another answer to resolved the situation.

Best wishes,

Michael Pine
email: Michael_Pine@Yahoo.com
AIM: Mortgagebroker71

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Re: mortgage broker backing out of deal - Posted by tony

Posted by tony on October 03, 2003 at 01:47:16:

Borrowers like you amaze me. What are you doing with a b/c lender? Other then the 10 yr issue, you must have some other problems.

You probably made one of fatal errors that most beginners make…they shopped hard on the loan to get the most leverage out of the deal. When you do this, you end up with an inexperienced mortgage broker. Now pay attention and learn something.

1-Begining mtg brks quote low rates and great terms (that in most cases) don’t exist! They have been misled by a super broker…and they in turn, mislead people like YOU!

2- if you real estate broker was so great, he/she would have sent you to an experienced mtg broker. Mortgage brokers do about 10 TIMES the work of a RE broker. Most RE brokers are glorified cab drivers!

3-Decision 1 is a good b/c lender. Be glad you got it.

4-Count your lucky stars that you even got a loan. Most people, like yourself, think that they deserve the world. Take the deal…go home and be happy.

BTW, what is your credit score?

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Re: mortgage broker backing out of deal - Posted by Dimpil

Posted by Dimpil on October 10, 2003 at 18:08:38:

Deals fall apart and it doesn’t bind him to anything if the lender changes programs.

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Re: mortgage broker backing out of deal - Posted by michael pine

Posted by michael pine on October 04, 2003 at 10:08:20:

Dean,

If underwriting killed the deal, nothing can be done it is that simple. It most defintly is not desirable for any party involved.

Now the broker needs to start all over putting a new package together and getting a new bank to take the deal. I can assure you he will not get paid additionally for his second efforts to close this deal

Best wishes,

Michael Pine
email: Michael_Pine@Yahoo.com
AIM: MOrtgageBroker71

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Re: mortgage broker backing out of deal - Posted by Ticked Off

Posted by Ticked Off on October 07, 2003 at 22:11:51:

Actually what is most amazing is the fact that all mortgage brokers as well as real estate agents are all in the same class w/ used car salesmen!
They all seem to be very misleading, do not disclose all of the facts, defects or best prices.
They are in this business for themselves, and really do not care what they sell you, as long as the sale is made.
And yes, I do agree w/ borrowers amazing people in this business w/ decisions they make…but remember, most of these decisions are made based on the deceit by lenders, brokers, creditors, and sales people. And yes, most bad decisions are made by first time buyers. Being screwed or the attempt there of is what happens to almost all first time buyers on any large purchase…car, home, boat, etc.

How people in this business sleep at night is beyond imagination. I am certain that at some point in their career, every person in this business has deceived a client in order to make the deal. Of course none of you will admit to it, but you know who you are.

As far as me assuming that I deserve the world…well, why not? Who doesn’t want the best & most that you can get. Don’t you want the best for YOURSELF, and for YOUR family? And if you cannot get what you feel you deserve, would’nt you want a good reason why you could not get it, especially if you were reassured that there were no problems w/ your credit, score, nor debt ratio?

I cannot help but to read between the lines of your posting and blatant remarks that YOU are the one offended w/ my deal and my approval from Decision 1.
If my situation was so grave, why would such a reputable lender approve me even at 95%? They wouldn’t. My application would be rejected completely w/out any leverage.

As far as my credit score is concerned, why would I disclose this information to anyone that thinks that I should be grateful to even get any form of a deal? Are you offering help? If so, why would I consider help from ANYONE with such a horrible attitude toward any consumer, bad credit or not?
If you are in the business, I highly suggest an extensive course in public relations and etiquette.

Now, maybe YOU payed attention and WE BOTH have learned something!

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Re: mortgage broker backing out of deal - Posted by Dimpil

Posted by Dimpil on October 10, 2003 at 18:02:52:

That is such nonsense! You get what you pay for or don’t pay for. Brokers, a good one, knows what the lender requirments are, review your credit report with you and give you RESP in 3 days. Can the deal change? YES as life changes day to day but it has been my exprience 3 things change it 1) the borrower 2) the lenders guidlines and 3) the law.

You should know your rights and you shoud have gotten a GFE within 3 days of him pulling credit. He should have pulled your credit, gone over every detail of your report with you and told you your scores, found your lender, got you re approved based on credit, loan size and income, then you would have had RESP in 3 days. IF you had to ask and keep asking and he didn’t give you anything, DO NOT WORK WITH HIM. Simple.

Do you know how many borrower lie? 98% of them. I had a lady who didn’t pay anyone, made 15,000 per month and wanted a 100% loan. I worked all her credit issues, got her rapid resvoled to get her score up then she went to another person who promised her a 5% rate. Well after living that lie she came back took the best I could give her as he droped her score by shopping her and she’s upset with me. STUPID.

Before you go to anyone about credit, did you get your scores? Did you go on line and check your credit? Did you resolve your issues? Did you make sure you DTR’ed on your own? Did you investigate brokers, ask questions, have a general idea of what your rights were? Did your RE agent inform you of the lending process? Did you inform yourself?? NO you obviously did not do your homework. Heck Fannie Mae runs ads all the time about the loan process and gives you a free brochure.

Don’t get upset with a broker, you and the agent who was only waiting on a check, were ignorant about the process.