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| *Loan,banking and credit>>>mortgage loan |
Applied for a loan, payed the fees, approved for the loan. the mortgage company defaulted on the loan, legal? |
we got a realtor and went through the process of searching for a home. finally found a home we liked and put a contract on the home. we payed the earnest money, appraisal fee and option fee for a total of 950.00. we were told that we were approved for 100% financing of which there is no such thing. the mortgage company told the seller that we were approved so go ahead and move out. she did.closing date was set . underwriters and loan company had a problem exchanging paperwork and we could not close on the date set. a new date was set and we had to file an extension on the earnest money contract. mortgage company changed their minds and defaulted on the loan. is this common and is it legal? What you wrote doesn't make sense. You wrote: "We were told that we were approved for 100% financing of which there is no such thing." 100% financing is very common. You wrote: "the mortgage company told the seller that we were approved so go ahead and move out." Mortgage companies don't talk to the sellers. Mortgage companies issue pre-approval and commitment letters to the buyer, and then the buyer provides this to his/her agent, who then in turn provides it to the seller's agent. You wrote: "mortgage company changed their minds and defaulted on the loan." Mortgage companies don't just willy-nilly change their minds. Lenders are in the business of lending money, if they don't, they go out of business. Therefore, there would have been a valid reason - like problems with verifying a borrower's income, assets, and/or work history. Source(s): I'm a Realtor and formerly a loan officer. Probably -- Mortgage companies play fast and loose. The application fee is just that -- a fee they charge for accepting your application. they didn't default. you weren't fully approved yet apparently. you had nothing in writing. wow, sorry to hear that... i bet the person who got u 100% approved made a mistake and got fired, so now they called the loan.... how could you be approved 100%?? i think that was the mistake, there for it was cancled... i think its legal, look at the contract that you signed, and if it says anything about cancellation premissies. The mortgage co did not default. You were not approved, as someone else mentioned already. This happens quite frequently. Either you dont make enough to cover the payments (or) you dont meet the credit requirements. To get 100% financing, you generally need at least 580 credit score with no judgements that would affect title (tax liens, Federal judgements, etc.). You need to check your credit score before proceeding with another attempt at purchasing. Then you will know what your options are. You also need to consult with a R.E. attorney to determine if you were screwed by the mortgage company and if you have any rights. Did they give you an approval letter to give to the real estate agent (or) just a prequalification letter. There is a big difference. Don't buy anything without consulting with a R.E. attorney next time. Dont trust the R.E. agent or the mortgage lender as neither of them care about you or your situation, just their pending commission. Also if you dont have at least 5% to put down using a fixed rate loan, then you probably shouldn't be buying a home. Hi , Am sorry to hear what happened with you .Did they also charge fees for appraisal??????Holy ****!!!!!! I do wanna inform you of the fact that I do sell cheap and decent Mortgage Packages .We have very good adjustable as well as fixed rates that are in the higher fives and lower sixes and we have additional denefits for our AZ customers like free appraisals , free washer & dryer as well as free trucks for moving .In case you are moving over to a new place you won't have to pay U-Hual . If you do feel that you are paying much more then contact me at kishaloy_bhowmick@ yahoo.com or call me at 480.751.4125 with your detailed case description . I will be happy enough to help you out . regards, kish |
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