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Old 01-29-2013, 10:29 PM
 
Location: Michigan
15 posts, read 87,215 times
Reputation: 16

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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!
Thanks, I hope it is a good case. The reason why I said fully approved is because that is what our mortgage lender told us. It seems as though he just assumed that when he says absolutely approved, then us first time home buyers must automatically know that what he's really saying is that we were still only pre-approved. He didn't specify on that, which is why we thought that meant that we were fully approved.
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Old 01-29-2013, 10:41 PM
 
Location: northern va
1,736 posts, read 2,898,034 times
Reputation: 1688
I tell my clients that they are "fully approved" when we receive the lender commitment letter.. until that arrives, nothing is guaranteed.

good luck with your situation
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Old 01-29-2013, 10:45 PM
 
Location: Michigan
15 posts, read 87,215 times
Reputation: 16
Quote:
Originally Posted by kww View Post
when did you sign the loan paperwork/disclosures?
I signed it on the same day as the appraisal 01/03/2012. They didn't receive the paperwork until 01/07/2012, because I wasn't able to drop it off to the underwriter until then. Not sure if I already mentioned this, but a couple of days after the loan was denied, 12/28/2012, the loan officer kept asking about having me get a co-signer for backup, all of a sudden started telling me that the loan is not all set until after close on the house (which he did not mention before-he should have though), asking if I could get more income, etc. if he claimed not to know the answer as to whether or not my loan was denied, then why would he randomly ask me those questions? That's another shady thing he did that led me to believe he was holding something back. He did way too many screw ups throughout this process and unfortunately I falled for them.
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Old 01-30-2013, 11:28 AM
 
5,046 posts, read 9,642,858 times
Reputation: 4182
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.
Well, this is excellent evidence.

You should see if a newspaper or magazine might be interested in your developing..or eventually complete...story. Or just right it all down. This is timely though. These kind of lender tactics are coming out more and more and are a topic of great interest nowadays.

You should talk with your realtor too. Feel it all out.

Google is a friend. Facebook is another friend. See if there is a connection between the lender/company and the realtor/her broker/her company. And, again, just low key. It could be the realtor is new. Perhaps she trusted the name her office gave her.

I should say there are lots of suits against professionals along these lines bringing about rules or additions to the codes or new laws. For instance, realtors should not recommend just one inspector, lender, settlement office, etc. Over time it was advised they give a list. Then it was advised they give the list in alphabetical order so as not to seem to favor the first on the list. Now, it is often advised to look in the local listings online or in a phone book, since yellow pages often still exist even where residential listings have been cut back. That goes full circle then to hurt a purchaser who is left out in the cold as much as when he first asked who to contact. However, all the suits because of problems in other areas necessitated great care.

Every state, and even most cities, have state and local boards of realtors where you can bring a suit. One thing about this is if the realtor is not involved perhaps she will have heard of something that she will share with you so that you can have more info against your lender.

With what you're gathering you may have more than you think. This does not seem like a situation where you'll only get back your personal costs. You might sue for fraud. You could contact the people bringing charges against Flagstaff and get on their list as one more person they have defrauded. Not that you would get much from any class action, but just that you would be part of a solution.
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Old 02-01-2013, 07:44 AM
 
10 posts, read 10,832 times
Reputation: 16
Typical case of bait and switch by mortgage brokers. You can threaten the broker of filing a complaint to appropriate department ( banking department in most states) in your state (assuming that the broker has NMLS #).
Also, I would suggest you to monitor your credit closely since the broker has your information and can potentially ruin your credit as retaliation.
Good luck.
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Old 02-01-2013, 08:09 AM
 
10 posts, read 10,832 times
Reputation: 16
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!
I do not agree with that statement as a consumer.

I agree the mortgage for specific property cannot be fully approved before having exact address but borrower is fully-approved for the stated terms (purchase price mortgage terms) when the lender provides the PRE-APPROVAL/commitment letter to borrower.

I am sure there are federal rules to protect borrowers in this case as the lender gave him a loan commitment letter based on his income and them denied it. It was lender's responsibility to verify his income (overtime/bonus...) before issuing the commitment letter.

Please don't try to argue that lender cannot be borrower's income(overtime/bonus) without having exact address of the property. Address of property has nothing to do with what happened here.
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Old 02-03-2013, 01:00 AM
 
936 posts, read 2,205,166 times
Reputation: 938
Just one more twist to this sort of situation. Most lenders get an upfront application fee that pays for the appraisal and various credit reports. There have been claims of discrimition against lenders who denied a loan without going through the entire process. So some lenders will order the appraisal even though they know that they'll not approval the loan. It's senseless unless you consider the lender's concerns with respect to being accussed of discriminating.
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Old 01-10-2014, 12:55 AM
 
1 posts, read 791 times
Reputation: 10
I have the same situation, but in my case I was about to go into escrow and the bank contacted my broker telling them that the house had a tax lien. The bank that thought they had possession over the house didn't. I lost everything all the money I paid for the appraisal and now I'm being told I should go and try to get my money back, from the real state agent that posted the house because she they knew what was going on with the house and they should of done a background check on the house.
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Old 01-10-2014, 01:51 AM
 
936 posts, read 2,205,166 times
Reputation: 938
The real estate agent doesn't do that sort of research on the house. The buyers/seller/attorneys do that sort of work once a transaction is pulled together. It costs money for title work and other sorts of inspection, and that's something that the seller pays for once they get a contract on the house. There are all sorts of contingencies that initially exist in a real estate transaction when it's first pulled together. It's that time between when you agree on a contract and when you close on it that that sort of research is done, and some transactions fall apart during that time.

The real estate agent is probably losing a lot more money that you are if they were promoting that house and paying for advertising, only to find out that it can't be sold for some reason.

If you stick with the same lender with the next house you try to buy then they should be able to reuse a lot of the loan documentations other than the appraisal. You could always request that they hold off on the appraisal until the other contingencies are satisfied, but most sellers wouldn't agree with that sort of delay.
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