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Old 08-14-2007, 09:02 AM
 
15 posts, read 40,680 times
Reputation: 12

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HI there!
To make a long story short, we bought new construction in Tallmadge and it took forever to get the loan. The loan is contingent on a refinance we were in the middle of doing to get our debt ratio down. 4 months later, we still don't have the refinance because all of the lenders changing programs constantly. We are supposed to be moving in in 3 weeks. We are currently in Florida living in a hotel, (my husband has to do some stuff here for work) and I am a nervous wreck. We didnt get the refi, we cant pay off some of our credit cards, we put in 8 grand of our own money for this house. What are they going to do when they find out we couldnt get a refinanc? Are we going to get sued? Are they going to try and restructure the loan and try and make it work? My son has to start kindergarten and we dont know where we are going to go. We are still holding out hope we are going to get the refi SOMEHOW and are still trying. We dont want to tell the builder or the lender because we dont want them to stop construction just in case....
SOOOO.....any homes for rent in the AKron Ohio suburbs? Or do we get a house we can actually afford??
Stressed out and nervous mother
Katzpurr
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Old 08-14-2007, 09:11 AM
 
Location: LEAVING CD
22,955 posts, read 23,659,373 times
Reputation: 15551
Bring the builder and finance company into the loop ASAP, these are the people that have a vested interest in getting you financed if they want to sell and I'm sure they do.
Most contracts have a finance clause that voids it if you can't get a loan, you mention that yours is contingent so that would be the out for you.
Maybe the builder will lower the price or the finance company will find another loan for you since they are motivated. Document all conversations and with whom you talk to protect yourself later.
This is a sticky time for most home loans until the money market settles down and the true losses are tallied up.

Hope it works out.....
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Old 08-14-2007, 11:25 AM
 
Location: California
510 posts, read 3,049,314 times
Reputation: 383
4 months to get a refinance means one of two things. Either you can't qualify for a loan, or the person doing your loan is incompetent. Unless of course they've told you why you no longer qualify, and have been working on credit or something of that sort.

Are you working with a retail lender? ie Countrywide... a Bank? ie Bank of America... or a Mortgage broker?

Banks tend to be the toughest to qualify through, and retail lenders can sway either way. Brokerages are all dependent on how many lenders they have access to, and if the loan officer knows what they are doing.

Have you only worked with one person this entire time on the loan? Have you been late on any payments? (30+ days - you mentioned credit cards).

If you have not looked elsewhere, then it's time to do so. Your credit has long since expired, so hopefully your score has not degraded. There's so many factors that have to do with getting a loan, it's definitely worth moving quickly to another loan officer. I'd call a few brokerages and interview the loan officers. Ask pointed questions... if they falter, or try and BS you move on. You don't have time to work with someone in training, although not many people are entering this business these days.

Feel free to post more details in this thread if you have any other questions, or any in the future. I try and check this once a day if I can.
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Old 08-14-2007, 03:09 PM
 
15 posts, read 40,680 times
Reputation: 12
Its with some company in Cali..No we are not late on any credit cards or payments...my husband actually has a great credit score.
First the guy my husband was working with send someone over to sign papers and the loan was nothing like he said it was going to be.
We didnt sign and in the meantime the guy got fired. A senior loan officer took over and sent someone to sign papers. We sign and the next thing we know the sr loan officer calls back saying the time had lapsed between appraisals and we had to get another appraisal. WE do that...the thing finally gets funded a week ago and the bank had pulled out..American Home mortgage closed its doors and we didnt get the refi. Now the loan officer is telling my husband we can get a refi, but we cant get any money out..so now we dont meet the contigencies on the loan and we have a new house that we dont know if we can move into to. Im at a loss and stressed out. No one wants to touch this with a 10 foot pole and we are now wondering..what the hell options do we have left and how are we going to come up with 25 grand in 3 weeks?
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Old 08-14-2007, 03:21 PM
 
Location: Grand Rapids Metro
8,885 posts, read 17,912,378 times
Reputation: 3876
Quote:
Originally Posted by Katzpurr View Post
Its with some company in Cali..No we are not late on any credit cards or payments...my husband actually has a great credit score.
First the guy my husband was working with send someone over to sign papers and the loan was nothing like he said it was going to be.
We didnt sign and in the meantime the guy got fired. A senior loan officer took over and sent someone to sign papers. We sign and the next thing we know the sr loan officer calls back saying the time had lapsed between appraisals and we had to get another appraisal. WE do that...the thing finally gets funded a week ago and the bank had pulled out..American Home mortgage closed its doors and we didnt get the refi. Now the loan officer is telling my husband we can get a refi, but we cant get any money out..so now we dont meet the contigencies on the loan and we have a new house that we dont know if we can move into to. Im at a loss and stressed out. No one wants to touch this with a 10 foot pole and we are now wondering..what the hell options do we have left and how are we going to come up with 25 grand in 3 weeks?
My advice, and you can take it or leave it, is to go talk with the builder immediately. If you trusted them enough to build you your largest investment, it only makes sense that you would trust them to help you work through this. If you don't have a buyer's agent working on your behalf, speak to an attorney beforehand if you have to (to review your contract language and your rights) and let the builder know you have done so. The builder's #1 goal is to get you in the home, and they may have a lender or two that they can recommend to help push this through successfully. Builders are generally not in the business of keeping earnest deposits or taking people to court, especially in a down market.

If it does go to court, the judge might look a little kinder on you if you made a good faith effort to close on the home, and that you were more a victim of a bad financing arrangement.
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Old 08-14-2007, 03:24 PM
 
15 posts, read 40,680 times
Reputation: 12
The builders mortgage company finally got us the loan...but as I said it was contigent on paying off some of our debt. Where else can we get the money?
Home equity loan from a bank? ANy kind of loan we can try and get just to get our debt ratio a bit lower?
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Old 08-14-2007, 09:10 PM
 
Location: Beautiful East TN!!
7,281 posts, read 19,476,590 times
Reputation: 2761
Adding another loan will just make you DTI go higher or stay the same. Getting a loan to pay off debt just means you are now paying a different entity than before, but still owe the money and your score may drop in the first month of adding a new credit line. I have a feeling you were trying to do a 100% Loan to Value and now that the requirements have changed just about nationwide, they will now only allow you a 80% LTV? Have you talked to your banker? The one where you have your checking and savings? Sometimes they can do things on a portfolio basis, just a thought. I think you just got caught in this nationwide mortgage adjusting mess, talk with the builder, they should understand and work with you.
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Old 08-15-2007, 06:21 AM
 
Location: Palm Coast, Fl
2,249 posts, read 8,247,244 times
Reputation: 1005
How much money are you talking about?
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Old 08-15-2007, 08:23 AM
 
15 posts, read 40,680 times
Reputation: 12
Quote:
Originally Posted by palmcoasting View Post
How much money are you talking about?
25 grand??
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Old 08-15-2007, 09:19 AM
 
9,734 posts, read 8,481,017 times
Reputation: 6363
Get the builder to lower the cost of the home by an amount so that you can qualify for the loan without the refi. There is huge margins in new construction. The builder would rather sell to you at a lower price than have it go empty and then they would have to eat the cost of the construction loan and property taxes. It worked for us in Virginia.
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