I think the 203K streamline loan is another bank scam (lender, contract)

[VictorBurek]

Originally Posted by disgruntled203k

I contracted the house I am trying to buy in March of this year. It is 10.27 and I STILL don't have a closing date. I was first caught up in Taylor, Bean and Whitaker. 2 days from closing, I was informed they were shutting their doors. Now with a new company, and the loan process and underwriting have been one of the worst experiences of my life. The seller of the home is at their end. They refuse to extend the contract after 10.30. Which means I will most likely loose my deposit and all money I paid for inspections. And getting someone to respond to you is futile. They don't care what your going through or that your going to loose it. But do I have any recourse?? At least to try and get my money back. Does anyone know if a real estate attorney can help?

What a horrible experience. Your best bet would be a attorney but not sure if it would help but maybe worth a call. Since lenders do not commit to a date, they can probably go as slow as they want. But sure seems like bad customer service.

[Eusibius2]

Originally Posted by disgruntled203k

I contracted the house I am trying to buy in March of this year. It is 10.27 and I STILL don't have a closing date. I was first caught up in Taylor, Bean and Whitaker. 2 days from closing, I was informed they were shutting their doors. Now with a new company, and the loan process and underwriting have been one of the worst experiences of my life. The seller of the home is at their end. They refuse to extend the contract after 10.30. Which means I will most likely loose my deposit and all money I paid for inspections. And getting someone to respond to you is futile. They don't care what your going through or that your going to loose it. But do I have any recourse?? At least to try and get my money back. Does anyone know if a real estate attorney can help?

OMG - worst experience I've heard of yet... Wish I had a bit of advice, but I have no idea at this point. I hope you get your deposit back, but I don't think you'll get money back for the inspections etc... Best of luck, disgruntled.

[disgruntled203k]

At this point, two days before scheduled closing they came back and said they have decided to not lend any money at closing to start repairs????? How is that legal, after they have repeatedly told me they would. I do not have the money to start the work and front 15,000 to the contractors. If I did, I wouldn't need this loan. Well, it has passed the final extension, even though they are desperatley trying for another. I am now in the process of trying to get my good faith deposit back. They are trying everything they can to stop it. I have never been so disappointed in people... I can't believe what should be a pleasant experience has been so absolutley horrible. If I can ever give anybody a good piece of advice, it's to STAY AWAY from the 203K.

[jen123]

Sarahlmac,
Did you ever get your disbursement? We have been waiting about 5 weeks for our final disbursement from Bank of America. No one ever answers the phone there because they are always "experiencing heavy call volume" Our original loan was with Towne Mortgage, who washed our hands of us when they sold the loan to B of A. I am now sending a fax to them every single day, begging for a reply, and have yet to hear from anyone. The contractor is ready to put a lien on our house. What a farce! I would advise anyone to avoid the 203K.

[jen123]

Originally Posted by Eusibius2

Sarahlmac - if you have a HUD Inspector, they should prepare a draw request for you and submit it to bofa. In turn, your contractor needs to submit a copy of applicable building permits and a lien waiver. Once those are submitted (via email, for my project), the bank will cut a check within 48 hours and mail it to you overnight. That was my process...

Do you have ANY contacts? If nothing else, you should always be able to contact your original loan officer and they can give you a contact name, number and or email. I've gotten our first draw request check, BUT have not heard any correspondance back from the 203k department - who never seem to answer thier phones or email!

Eusibius2,
How do you get a 203k inspector? We don't have anyone, and we cannot reach anyone at Bank of America and have been waiting weeks for our final disbursement. Our final inspection was performed by the original appraisal company. Thanks for any help or input you have.

[Eusibius2]

Jen - you can always check the HUD website who has a list of registered HUD 203k Inspectors: HUD FHA Inspectors & 203(k) Consultants

We got ours through our lender, since they worked frequently together. Initially, it also worked out well because the HUD Inspector also worked frequently with the 203k Loan Processor. Well, things have changed, our loan officer and loan processor neither work at BofA. BUT - we still have a good relationship with the Inspector who really knows what he is doing. He is also listed on the HUD website.

When checking, you will probably get a few names on the list that are in your area. Just like any other contractor - call several and check them out like you would anything else (mechanic, home inspector, contractor, etc...). Most important thing for us was to know how many 203k loans he's done in the past and how knowledgeable about them he is. These are really tricky loans, from beginning to end (and then some). Getting people who deal with them on a regular basis is key to success. Learning on the spot is not an option (except for those of us who are doing the loan on our own house for the first time! LOL).

Good luck!

[gabby09]

I too am going through the same things as many of you. I was fortunate to have a smooth closing process. (delayed 1 week) And I foolishly thought that was setting the tone for everything to go smooth, but boy was I wrong. I thought that once we made it thru closing, everything else would be sweet and easy. I am now having the worst time of my life with BOA!!! (I actually bank with BOA and come the anniversary date of my CD, you better believe that I am taking every single penny I have to another bank!) I think that it is just horrible what they are putting people through. Most of us have worked hard and saved money to be able to buy a home and probably have used most if not all of our savings to do so. Only to discover that you can not occupy the home you just purchased and its because “people” are not doing their jobs!!! Its atrocious. I have called BOA about 100 times a day. I have called the customer service department, the home loans department, every department that I could think of and they all say that the 203K department is out of their reach…I find that so hard to believe. I have now contacted my Congressman, FHA and HUD. Someone is going to do something because at this rate my fiancé and I will be in foreclosure before we even move in being forced to pay a mortgage and rent… This is absolutely past ridiculous. We all need to come together as a United Front. I say we create a petition and have as many people we can find sign it and then send it to any and every single congressman/woman in our areas. Someone to do something about this because they are playing with peoples lives and it’s not right. If you are interested please contact me at miss_n_dependent@hotmail.com

[Eusibius2]

Feel free to draft that letter and post it online... Many people will be sure to sign it!

Why can't you move into your house? The day we closed, we moved right in. Is your house un-inhabitable and that's the reason for the 203k?

[gabby09]

Yes, its inhabitable... I will surely get on the move with the drafted letter and post for input. We have no kitchen at all, no hot water and other things. I have a 2 year old and I would never let her move in that home as it stands now.

[beltway_insider]

Glad to know that we're not alone. I've been trying to close on a 203k with M&T Bank since July without luck. And I went them specifically because I'd heard they we faster than BOA and Wells Fargo! We have spotless credit and could qualify for a significantly larger loan, so we do not understand the holdup. This has been terribly frustrating. I would be interested in hearing what others learn re: legal recourse. I'm going to be furious if I'm out $1,500 for inspections etc. just because the bank takes too long and my contract expires...