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Old 02-19-2010, 02:29 PM
 
35 posts, read 98,036 times
Reputation: 20

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I have bought houses before but elected to go with BOA because of realtor referral and a better rate. This has been the most miserable painful transaction I've ever been through. We should have closed by now but I'm not sure we ever will. They don't know what they want, they can't answer the phone, they don't answer questions. It's just a simple conventional loan on an REO. You get what you pay for, we should have gone with a higher rate in order to avoid dealing with these guys.
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Old 02-19-2010, 03:54 PM
 
Location: Lead/Deadwood, SD
948 posts, read 2,266,537 times
Reputation: 854
Some small local banks have in house underwriters and can close in no time. If a preliminary title policy is already done and an appraiser is available in 2-3 days, and if there isn't an inspection, maybe someone local could swing it in just under 2 weeks. Have you locked in your rate?
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Old 02-19-2010, 08:01 PM
 
3,576 posts, read 5,902,769 times
Reputation: 1431
Well I've done a simple conventional loan with BOA on a regular purchase. Simple, easy, did it in less than 30 days.

Remember your loan was not regular purchase. You purchased a REO. I wouldn't consider it a regular sale.

BOA has always been very good to me. I have business accounts, investment accountant, in addition to mortgage and regular checking.

People always want to blame banks, but if it's simple and you know what you are doing, banks are always there to help you, regardless if they are big or small.
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Old 02-20-2010, 06:14 AM
 
Location: Wake Forest, NC
835 posts, read 3,527,258 times
Reputation: 646
aneftp- good post! What people think is an easy loan is not the same as what is really an easy loan.

Here are some things that define what an easy loan file is:
1- 2+ years at your address with 3 rd party verifiable payment record. Renting your cousins house and paying in cash while he is traveling Europe for a year doesn't count.
2- 2 + years with your current employer- no position changes just your standard raises each year.
3- 2 months bank statements with no deposits other than direct deposit payroll. Counter deposits or internet transfers require additional documentation.
4- no negative reporting on credit report.
5- no AKA names on credit report.
6- no authorized user accounts on credit report.
7- no undocumented improvements to house (extensions without permits).
8- 2 private individuals (buyer and seller) who are not related. No REO, short sales, foreclosures. buying my uncles house.


This is just a start and I hope other will add their 2 cents but, if you can't answer yes to all these get ready to supply additional documentation because you are not the easy loan file you thought you were.
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Old 02-20-2010, 09:37 AM
 
7,671 posts, read 11,275,729 times
Reputation: 15249
Quote:
Originally Posted by aneftp View Post
People always want to blame banks, but if it's simple and you know what you are doing, banks are always there to help you, regardless if they are big or small.
Bull.

I have been doing business with BAC for 30 years, including previous mortgages and refinances, plus I had a personal banker with them. But I just tried to purchase a house in which I was putting down a quarter of a million dollars and asking them to finance less than 50%. I have a guaranteed government retirement income for life and a seven figure investment portfolio, and my mortgage application was turned down by an underwriter in Charlotte because she couldn't verify my income down to the penny.

Before I get into any more particulars, let me give you a little primer on federal employment and retirement:

Although separate agencies within the federal government hire and employ their employees based on their own rules and regulations, there is one central personnel agency that handles benefits such as retirement for everyone: the Office of Personnel Management (OPM). When an employee is getting ready to retire, their own agency can provide a benefits statement indicating what the estimated annuity will be, but it is subject to review by OPM and is not official until OPM performs their own calculations, sometimes 6-8 weeks after you retire. I'm sure that you can see where this is going....

My agency's HR department provided a memo to Bank of America indicating what my "estimated" annuity will be, down to the penny. The memo literally said that my present annual salary is xxx,xxx and that the gross annuity would be x,xxx.83 per month and the net after taxes and other deductions would be x,xxx.71 per month. Once OPM conducts their own review this could change by a few dollars a month; however, we are talking about a possible change of .001 of the total amount.

Nevertheless, because my agency (or any federal agency) is only allowed to say that the amount is an "estimate," the underwriter would not approve the loan at this point in time and considered the income "unverifiable."

Fortunately, the proceeds from the sale of my house in Bethesda last November were still in a money-market account and was more than enough to pay cash for the house I wanted to purchase, otherwise I would have had to sell equities to purchase the house (either that, or let the sale fall through).

We've gone from an era where underwriters would approve loans to anyone with a heartbeat, to one where people with guaranteed incomes for life and a seven-figure net worth can't qualify for a loan.

So don't give me this B.S. about banks are always there to help you.
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Old 02-20-2010, 10:24 AM
 
Location: Boca Raton, FL
4,851 posts, read 8,318,483 times
Reputation: 5478
Smile Try someone else

If you seek a small mortgage broker who will keep expenses low for you, you will find their rates better than BOA.

I'm a small broker and I work with one of the better pricing leaders in the business - they only want quality loans but you would not get the delays.

The small, honest brokers and appraisers who have been doing this for years (before the boom) have been hard hit just like the consumers out there, believe me.
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Old 02-20-2010, 01:41 PM
 
3,576 posts, read 5,902,769 times
Reputation: 1431
Quote:
Originally Posted by MadManofBethesda View Post
Bull.

I have been doing business with BAC for 30 years, including previous mortgages and refinances, plus I had a personal banker with them. But I just tried to purchase a house in which I was putting down a quarter of a million dollars and asking them to finance less than 50%. I have a guaranteed government retirement income for life and a seven figure investment portfolio, and my mortgage application was turned down by an underwriter in Charlotte because she couldn't verify my income down to the penny.

Before I get into any more particulars, let me give you a little primer on federal employment and retirement:

Although separate agencies within the federal government hire and employ their employees based on their own rules and regulations, there is one central personnel agency that handles benefits such as retirement for everyone: the Office of Personnel Management (OPM). When an employee is getting ready to retire, their own agency can provide a benefits statement indicating what the estimated annuity will be, but it is subject to review by OPM and is not official until OPM performs their own calculations, sometimes 6-8 weeks after you retire. I'm sure that you can see where this is going....

My agency's HR department provided a memo to Bank of America indicating what my "estimated" annuity will be, down to the penny. The memo literally said that my present annual salary is xxx,xxx and that the gross annuity would be x,xxx.83 per month and the net after taxes and other deductions would be x,xxx.71 per month. Once OPM conducts their own review this could change by a few dollars a month; however, we are talking about a possible change of .001 of the total amount.

Nevertheless, because my agency (or any federal agency) is only allowed to say that the amount is an "estimate," the underwriter would not approve the loan at this point in time and considered the income "unverifiable."

Fortunately, the proceeds from the sale of my house in Bethesda last November were still in a money-market account and was more than enough to pay cash for the house I wanted to purchase, otherwise I would have had to sell equities to purchase the house (either that, or let the sale fall through).

We've gone from an era where underwriters would approve loans to anyone with a heartbeat, to one where people with guaranteed incomes for life and a seven-figure net worth can't qualify for a loan.

So don't give me this B.S. about banks are always there to help you.
Again, as "dad2jules" stated, you do not fit into the "normal person" loan situation.

" I have a guaranteed government retirement income for life and a seven figure investment portfolio, and my mortgage application was turned down by an underwriter in Charlotte because she couldn't verify my income down to the penny.

Your quote here, describes why they are having such a hard time underwriting the loan. You don't have a cut and dry situation with the bank.

You realize how many government (both state and federal pensions) will come under fire in the next few years because they are going to be severely unfunded. I don't know your age, but "guaranteed govt. retirement income" may not mean be guaranteed in the 5 years. I believe your pension/retirement is "guaranteed" by the PBGC win of the government. Guess what? That branch of the government is severely underfunded. There's no guaranteed how much it will compensate future retirees. That's why your application has been delayed.
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Old 02-20-2010, 03:08 PM
 
7,671 posts, read 11,275,729 times
Reputation: 15249
Quote:
Originally Posted by aneftp View Post
Again, as "dad2jules" stated, you do not fit into the "normal person" loan situation.

I believe your pension/retirement is "guaranteed" by the PBGC win of the government. Guess what? That branch of the government is severely underfunded. There's no guaranteed how much it will compensate future retirees. That's why your application has been delayed.
Guess what? You "believe" wrong, which makes the rest of your comment moot, if not incoherent.

My federal pension is paid from the U.S. Treasury and is not guaranteed by an arm of the government. It is as secure as someone buying a Treasury note or bond.

The only reason that my loan was not approved by the pedantic underwriter is that she could not get over the word "estimate" and did not understand how federal pensions are calculated and paid. You appear to suffer from the same affliction.

You'd be better off not voicing your opinion by speculating on
events when you have no basis for understanding the situation.
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Old 02-20-2010, 04:00 PM
 
3,576 posts, read 5,902,769 times
Reputation: 1431
Quote:
Originally Posted by MadManofBethesda View Post
Guess what? You "believe" wrong, which makes the rest of your comment moot, if not incoherent.

My federal pension is paid from the U.S. Treasury and is not guaranteed by an arm of the government. It is as secure as someone buying a Treasury note or bond.

The only reason that my loan was not approved by the pedantic underwriter is that she could not get over the word "estimate" and did not understand how federal pensions are calculated and paid. You appear to suffer from the same affliction.

You'd be better off not voicing your opinion by speculating on
events when you have no basis for understanding the situation.
Let me ask you a very simple question. Are you presently employed (either self employed or through an employer?). If you do not fit into this class, you are not a conventional borrower and thus more scrutiny applies.

If your primary means of earnings is via other means (could be your retirement earning, savings etc), than you do not fit into the typical profile that a lender can approved in less than 30 days.

Yes, that sucks. And I agree with you that that lending underwriting standards are ridiculously tight these days. They want to verify everything, and I'm sorry to hear your holdup is with the word "estimate" with probably some low wage earner in NC.

As for the US Treasury. Wait until China decides to dump its more than 1 trillion profolio from the US treasury. Just the thought of China doing that sends the US stock market down at least 1%. It's scary. Who exactly is funding your retirement income from the US treasury? True, you've contributed to it through your working years. But the way the US govt. envisioned it, they wanted their workers (or assumed they would die) before age 67. The assume people would retire by age 65 and die within 2-3 years, thus they wouldn't need to pay out that much. Now so many people are living well into their 80s now. It's a suicide game the US government is playing.
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Old 02-20-2010, 06:09 PM
 
Location: N of citrus, S of decent corn
34,530 posts, read 42,694,765 times
Reputation: 57174
This is why I never deal with impersonal national banks. We deal only with local, independent banks where I deal face to face with someone who has autonomy.
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