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Old 01-27-2013, 03:42 PM
 
Location: Lexington, SC
4,280 posts, read 12,693,563 times
Reputation: 3750

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I agree with THE that it could be a a bait and switch epsecially with shady lenders.

Going to court even to a jury that is made up of people like myself who will try and see your point versus the lenders point and rule in your favor, the decision can be appealed making the case long, expensive, sticky, the house is gone, etc.

I say lick your wounds and move on. If nothing else, you have learned lesson and generally lessons cost money one way or another.

Fool me once, shame on you. Fool me twice, shame on me.
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Old 01-28-2013, 04:14 AM
 
1,092 posts, read 3,443,258 times
Reputation: 1133
I'm looking at a loan under 100k and the reality is they just don't make that much money off these loans. My brother referred me to a broker that he trusts will treat me well, as a favor to him...

While it seems you were mislead, you probably couldn't afford the loan, so you were perhaps lucky that it only cost you $1000. It could have been a much more expensive lesson.

You may qualify for a USDA direct loan if you're looking to buy in a rural area. Loans are subsidized at 1 or 2 percent, require no down payment, and no PMI. You can use a calculator on their website to determine the maximum house you can afford, in my case it was substantial.

If you can qualify for let's say a 100k USDA or a 60k FHA, it's probably smart to buy under that amount if possible.

Also, check out if you can get any downpayment assistance if you're a first time buyer by checking through your county and any non-profit agencies specializing in low cost housing.

It can't hurt to file in small claims court, btw. If they're out of state, you'll likely get a default judgement. You might want to see if you can access help from a local free legal clinic.

Good luck.
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Old 01-28-2013, 11:13 AM
 
5,046 posts, read 9,656,236 times
Reputation: 4182
You could also look into an FHA 203. Good on homes that may be priced lower because of fixup but you feel you can't do the work. You can contract it out and roll it into the loan. But you do need a lender who knows what they're doing. A real lender who knows the ins and outs of different loans, not just a fill-in-the-blanks person for someone else.
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Old 01-28-2013, 12:40 PM
 
Location: Michigan
15 posts, read 87,237 times
Reputation: 16
Thank you everyone for all your replies. Your advice is really helping us in deciding which direction we want to go in solving this issue!
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Old 01-28-2013, 02:32 PM
 
Location: Columbia, SC
10,997 posts, read 22,042,241 times
Reputation: 10731
Good luck with it. While it does seem like the lender did their job poorly it's par for the field. Find a good agent and they can probably refer you to a good lender. It's unlikely to be worth your time to pursue it. Unfortunately the best lessons in life are usually expensive. Kudos to whoever suggested looking into the 203k and trying to get a deal on a fixer. Could be worth exploring.
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Old 01-28-2013, 03:07 PM
 
936 posts, read 2,206,803 times
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There is indeed a difference between pre-qualified verus being pre-approved. In any event, the document you received from your lender showing the $80,000 should have had some disclaimer language on it that told you the approved amount was subject to verification. If not, then I think you have a strong case in small claims court.

Our local board of Realtors has a nice form that the buyer fills out for the seller that discloses whether or not the buyer has been either pre-approved or pre-qualified. This issue is one in which the brokers in our market have already figured out.

Were you using a competent real estate broker? This is a rather simple issue that should not have caught him or her by surprise and also a good lesson to encourage people to find a competent broker who can recommend competent and ethical lenders for whom they've already had a history of using them so that they can be assured that their honest.
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Old 01-29-2013, 07:53 PM
 
Location: Michigan
15 posts, read 87,237 times
Reputation: 16
Hi again everyone,
well I just received a letter from flagstar bank stating my being denied for the loan, but here's the thing, the letter states that the loan was denied on 12/28/2012. The appraisal was not done until 01/03/2013. Here is what the letter says "in compliance with regulation b (equal credit opprotunity act), this letter is advising you that your recent credit application to flagstar bank for a fha 30-year fixed mortgage loan was declined on 12/28/2012." If my loan was already declined well before the appraisal was even scheduled, then that's proof right there that flagstar bank is at fault. We would never have had to schedule and pay for an appraisal if our loan was already denied. What I'm really curious about now is why our loan officer said to schedule an appraisal when he already knew our loan was declined? More and more previously hidden information keeps coming out.

To yousah: we were referred to our loan officer by our real estate agent. We didn't know if he was competent or not, we just trusted our agent to refer us to someone trustworthy. Unfortunately that was not the case for us.
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Old 01-29-2013, 08:57 PM
 
3,826 posts, read 5,826,186 times
Reputation: 2401
Quote:
Originally Posted by Sunnypalm39 View Post
At this point I was fully approved through the mortgage company and was told exactly what I could afford.
I am 100% sure you was not "fully approved" at first. You was PRE-Approved! It's a different story, so I don't think you can get any money back.
Sorry, but you are not the first one who had this experience and I am sure not the last one.

You cannot be "fully approved" until you have exact address of the house you are buying. Until you ask for a mortgage for specific house you are not fully approved.

Since you have a letter with one date and appraisal with the later date, you might have a case. Good luck!

Last edited by EngGirl; 01-29-2013 at 09:23 PM..
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Old 01-29-2013, 09:34 PM
 
Location: northern va
1,736 posts, read 2,901,368 times
Reputation: 1688
Quote:
Originally Posted by Sunnypalm39 View Post
Hi again everyone,
well I just received a letter from flagstar bank stating my being denied for the loan, but here's the thing, the letter states that the loan was denied on 12/28/2012. The appraisal was not done until 01/03/2013. Here is what the letter says "in compliance with regulation b (equal credit opprotunity act), this letter is advising you that your recent credit application to flagstar bank for a fha 30-year fixed mortgage loan was declined on 12/28/2012." If my loan was already declined well before the appraisal was even scheduled, then that's proof right there that flagstar bank is at fault. We would never have had to schedule and pay for an appraisal if our loan was already denied. What I'm really curious about now is why our loan officer said to schedule an appraisal when he already knew our loan was declined? More and more previously hidden information keeps coming out.

To yousah: we were referred to our loan officer by our real estate agent. We didn't know if he was competent or not, we just trusted our agent to refer us to someone trustworthy. Unfortunately that was not the case for us.
when did you sign the loan paperwork/disclosures?
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Old 01-29-2013, 09:36 PM
 
Location: northern va
1,736 posts, read 2,901,368 times
Reputation: 1688
Quote:
Originally Posted by EngGirl View Post
I am 100% sure you was not "fully approved" at first. You was PRE-Approved! It's a different story, so I don't think you can get any money back.
Sorry, but you are not the first one who had this experience and I am sure not the last one.

You cannot be "fully approved" until you have exact address of the house you are buying. Until you ask for a mortgage for specific house you are not fully approved.

Since you have a letter with one date and appraisal with the later date, you might have a case. Good luck!
agreed.

even if they verified all income docs etc, they wouldn't be able to sign off 100% until a specific property has been uploaded with the file.

sadly, there are frequently underwriting issues that pop up in a transaction.. I could fill this thread with examples
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