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Old 06-18-2012, 01:59 PM
 
6 posts, read 333,965 times
Reputation: 23

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I'm a first time home buyer. The process began for me last month when everything was accepted by the seller, I put a check into escrow and gave the mortgage broker every scrap of paper he asked for.

Since then, I've sent him paycheck stubs and bank statements religiously. I had to tell him that he needs my final divorce documents. I faxed them to him the day he agreed that he did, indeed, need those. I've responded to every question within hours of requests. He tells me I've done all I need to.

But I am supposed to close this Friday. It will be 45 days since we began this process and I understand the seller is eager to close. So am I. He and I have both done every thing asked of us and I can imagine that he must be starting to get a bit testy considering what an excellent deal I'm getting on this house and all of the(FHA required) repairs he agreed to do.

But now my mortage broker says escrow may not close until as late as next month. Isn't 60 days a bit long? This is a standard sale, with very little negotiating. Appraisals and removal of contingencys (except the finance contingency) were all taken care of last month. The broker seems to think this is all perfectly normal. My real estate agent, on the other hand, seems to be panicking a bit. He wants me to pay the 3.5 percent down and close faster, rather than hold out for the additional 'grant' of a partial downpayment that I've applied for. He says if I miss the closing date the seller can back out.

What the heck is going on? I've never encountered anything like this. It all seems so very slipshod and I feel I'm being cornered into a deal I do not want to do.

Any thoughts? I considered waiting until the closing date and if the seller strongly wants to close, should I offer to move in and pay rent until the loan funds? (I'd already made arrangements to move out at the end of the month anyway.) I have been told that the loan is pretty solid and that I'm in good shape as far as that goes, but that "this mortgage company is swamped and this sort of thing happens all the time these days".

Does it? Any thoughts would be appreciated.
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Old 06-18-2012, 07:14 PM
 
Location: South Jersey
819 posts, read 2,945,392 times
Reputation: 1444
Some loans just happen to take that long. The reality is that mortgage companies are busy. I'm currently dealing with an insane volume at my job. Just make sure to stay on it. Call him every day -
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Old 06-18-2012, 08:44 PM
 
Location: Phoenix AZ
6,144 posts, read 12,051,400 times
Reputation: 9875
My FHA loan took 6 weeks, the bank was the problem - your grant may be an issue- at this point I'd be calling daily for updates. Hound them to the point that it's easier to fund your loan than to deal with you. You need to be a class-a pest. If you've ever been in customer service, think back to your most difficult customer interaction & channel that person times two.

Banks can close an FHA loan in just a couple of weeks if they want to. No reason to give them permission to kink your deal or cost you money. Get grumpy!
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Old 06-19-2012, 01:49 PM
 
6 posts, read 333,965 times
Reputation: 23
Great advice, both of you. I called my broker today and he sounded surprised, uncomfortable and eager to make me happy. Last week he'd said the paper work would 'be on somebody's desk by Monday morning.' I reminded him of that and asked if it were the case. Now he's saying its going to be reviewed Wednesday. Why Wednesday? I asked him. He said they might ask for papers and when I pointed out that I've sent him absolutely everything he told me that when they send the package THEY DON'T SEND ALL OF THE PAPERWORK. I told him I don't understand why he can't package up the remaining paperwork now and send it. He hemmed and hawed, but I guess he didn't expect me to call and drill him. He also told me that the termite work is not scheduled until next week. News to me. I thought all of this had been done a month ago. The FHA loan can not be funded until that work is done. So, the seller has not yet held up his end. NOBODY had filled me in about that. I still feel like I'm getting the run around and not being told things.

It is partly the grant money. You were right about that. It's an excellent program and a lot of people in California are taking advantage of it right now. Hence the backlog.

I still feel like I'm the only one with a sense of urgency about this.
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Old 06-20-2012, 08:30 PM
 
Location: Surprise, Az
3,502 posts, read 8,777,611 times
Reputation: 1855
Mine took about six weeks, the hold up was Fannie Mae. We bought a homepath home using FHA.
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Old 06-21-2012, 09:34 PM
 
6 posts, read 333,965 times
Reputation: 23
They are guesstimating AT LEAST 8 weeks.

I expected to hear something by Wednesday and now everyone is telling me NEXT Wednesday? And yet I keep hearing how this is to be expected, and somehow MY fault for going FHA? My agent told me that they are now discouraging people from using FHA financing.

I just don't want the deal to go south because of all this.
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Old 06-22-2012, 09:37 AM
 
Location: Phoenix AZ
6,144 posts, read 12,051,400 times
Reputation: 9875
Quote:
Originally Posted by metaforical View Post
They are guesstimating AT LEAST 8 weeks.

I expected to hear something by Wednesday and now everyone is telling me NEXT Wednesday? And yet I keep hearing how this is to be expected, and somehow MY fault for going FHA? My agent told me that they are now discouraging people from using FHA financing.

I just don't want the deal to go south because of all this.
Something close to 70% of new home loans are FHA, this isn't an FHA problem, it's a lender problem. As I mentioned previously, my FHA loan took six weeks, a family member closed one in three weeks - the difference? Different lenders. Some are extremely slow at doing their jobs, some are very good at doing their jobs. There's nothing inherently "difficult" about an FHA loan, other than a slightly more involved appraisal, but if the property made it through the appraisal without extra conditions, it's all about the lender. Eight weeks is not acceptable, unless the appraisal came in low, or the property needed repairs and they had to be negotiated, or the repairs were delayed. They truly can't do anything if you need a termite treatment until they have a paid receipt, but once that is provided, it's just a rubber stamp from underwriting that you've met the conditions for the loan.

Start thumping on desks & consider dropping an "f-bomb" or two into your conversations with the loan officer. The bank is making thousands of dollars on your loan, they can afford to work your file in a timely manner. You aren't asking them to build a "ship in a bottle", you're asking them to read the documents you've sent them in a timely manner.

Last edited by Zippyman; 06-22-2012 at 09:48 AM..
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Old 07-03-2012, 11:33 PM
 
6 posts, read 333,965 times
Reputation: 23
Default update to the above thread

I spoke to my mortgage broker about an hour ago and I'm beside myself. Finally, last Friday, after 52 days, the FHA loan was 'clear to close'. I thought we were finally out of the nightmare and I could move forward with my life.

On the 22, the actual original close date, my mortgage broker said we would be closing 'no later than ' July 6. I was frustrated because I had to reschedule everything, but what can you do? Last Friday, when we got the clear to close, he said 'no later than' July 13. That's closing, not possession of the keys, by the way...

An hour ago he told me that it would be 'no later than' July 19. That's 20 days to close after the clear to close was given.

This has been a standard sale. There has not been any issue AT ALL on either side at any time. All documents were delivered IMMEDIATELY at every point in the journey.

He has lied to me several times now. My question is, should I be talking to attorneys? Is there a chance that this thing is being jacked around? We got an extension but only to July 13. I've been told 'no later than' four times now and don't believe a word of it. Even better, my agent has disappeared. I haven't heard from him in two weeks. I've sent him emails but he hasn't responded.

Should I be calling lawyers?
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Old 07-04-2012, 09:47 AM
 
6 posts, read 333,965 times
Reputation: 23
I also wanted to add my concern that I've never met or spoken to the loan officer. I don't know the person's name or even gender. I am going through a mortgage broker ??? who has told me that only one company in the state is doing these particular loans. Should I request a conversation with the loan officer?
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Old 07-04-2012, 08:13 PM
 
Location: MID ATLANTIC
8,045 posts, read 19,712,187 times
Reputation: 9076
Okay, let's start from scratch. In this case, mortgage broker and loan officer are one and the same.

How did you find this broker? Is he in your state? Did you meet face-to-face?

Is this broker the only one you talked to when you started looking?

Only one company in the state is doing these particular loans? Surely, you don't mean FHA, you must mean grant. Unless you are talking about the only lender that takes your ratios?

I'm having a hard time following, it could just be I'm tired or holes are present in your posts and I am assuming its because you are a first time homebuyer.

If your broker is sending your loan to a community bank that is arranging a first time homebuyer grant, you have an extra layer of communication. If indeed that is the case, your file is competing with a whole lot of loans. The grant process is tedius and the guy has no control over the processing of this loan, the approval is contingent on the grant, the grant is taking time. Do you absolutely need the grant to move forward? Unfortunately, you are learning the hard way, something for nothing does not exist, because you are paying a price. Your Realtor needs go to bat for you to try to hold it altogether, you could lose the house and possibly your deposit. You could see an attorney, to protect your earnest money and contract, but not to advance your place in line ahead of others. There are all sorts of laws on the books that make sure everyone is treated equally. We see the same thing with USDA.......even if there is imminent harm, advancing a loan requires proof of need.

We could give you an agency or two for complaints, but that also won't get your approval and closing out and it's probably not the fault of anyone. First, find an advocate, someone that understands the mortgage process well, knows what questions to ask, parent, co-worker, agent's broker. Have them call this broker with you on the phone. Do this tomorrow. Verify and confirm your earnest money and contract is truly at risk with your agent and his broker. Then when you have some facts call your congressman's office and ask for constituant services and file a request for assistance. They will cut through the red tape for you, providing you really have some kind of loss at risk. (Waiting your turn in line for the grant is not sufficient for them to get involved).
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