Closing nightmare (Wells: sale, real estate, credit score)

[bronstew]

Two days before closing on a house, the bank says they need additional documentation. One of them is an obscure govt document from the UK that we do not have, called a P45. We could lose the sale due to Wells Fargo's insistence that we submit this document, even though we can provide additional documentation that serves the same purpose (proof of employment over the last 2 years). What the hell is happening with the banks right now? I understand they're tightening up because of what happened in the housing market, but this is crossing the line into unreasonable. We are putting almost 50% down on the house, we have excellent credit... I cannot believe they might turn us down on such a minor technicality. It's unreal.

[dickelfan]

You need to get your realtor/title company involved and make them earn their money. Two days before closing the bank should not be asking for more documentation....you should have already given them enough to have been approved.

[ThereAndBackAgain]

That's horrible. I've always gotten the "clear to close" from the lender before scheduling closing. Getting to that point can be onerous, but once you're there, they shouldn't pull any tricks.

[ethanw]

Welcome to the American banking system. After the whole real estate fiasco banks are gone crazy. Don't be surprised if they pull some latex gloves. Unless you give them what they ask you're pretty much stuck, or try a different bank. I had similar issues where they wanted more than 6 months history on my cash. I told them I just cashed in stocks and I can't provide more history than the stocks. Absolutely CRAZY

Originally Posted by bronstew

Two days before closing on a house, the bank says they need additional documentation. One of them is an obscure govt document from the UK that we do not have, called a P45. We could lose the sale due to Wells Fargo's insistence that we submit this document, even though we can provide additional documentation that serves the same purpose (proof of employment over the last 2 years). What the hell is happening with the banks right now? I understand they're tightening up because of what happened in the housing market, but this is crossing the line into unreasonable. We are putting almost 50% down on the house, we have excellent credit... I cannot believe they might turn us down on such a minor technicality. It's unreal.

[Houston321]

Welcome to the new world of lending

[testmo]

it's difficult as a foreigner. a well to do American can breeze through the process. UK banks aren't known as being friendly or on the side of the people either

[Cabot]

It's ridiculous what they ask for. Just before closing we were asked for documentation showing the purchase price of our house in the UK. (They already had the sale info). Why?! No-one could or would answer that question. It was 7 years previous and all those files were in storage in the UK with all our household goods. After a mad scramble our solicitor managed to come up with it and FedEx it over.

[cheryjohns]

Wells Fargo, Chase and Bank of America are horrible about this. Sometimes they will tell someone they can't do the loan, a couple of day out from closing - even though that person has an excellent credit score and debt ratio. They aren't picking on you because you from across the pond. They offer this bad behaviour to everyone.

The realtor and title company have absolutely zero control over the banks. The problem was the bad choice in lenders. This is why I stick with the one I have. At this point, you just have to come up with what they want - they really don't care if you do the loan or not.

[bronstew]

At least we're not alone in our suffering. We have provided them with P60s for the last two years, which are basically statements from the UK govt showing how much we earned and how much tax we paid for the past two years. If they won't accept that, they are being completely unreasonable. We shall see. Is it possible to switch lenders at this point? That would mean another 6 weeks delay. I'm assuming the sellers have no option to back out at this point. My agent is good friends with my lender... I'll definitely avoid that situation in the future. :-/

[piyf]

Another 6 week delay? Seems rather long for a closing.