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     | Wednesday, March 22, 2000 - 10:44 pm  Trying to purchase a new home in AZ, found a broker,submitted app, stated income program. Broker found loan and advised me"it was a done deal" I was checking around and getting info on similar loans and rates on the NET. To make a long story short, I found a web site with much info and called to get more info, in the process of dealing with the loan person and exchanging e mails etc. she asked me questions like prior work places, income etc.. I assumed this was just small talk or conversation even though I told her on several occaisions that I had made a loan aplication with a broker that was stated income due to my own business, self employed. As my luck would have it she convinced me to let her try to get a open approval for me if the other deal did not work, a backup loan. Well, I sent in an internet application to her. On Monday morning I received in the mail a reject letter from the brokers bank, also the same bank I was getting info from, the girl took the info I had told her about and got it all screwed up listing my previous jobs as present and a new job I just started for extra money until my business was going good, as my self employed business. The closing date was Tuesday afternoon, the next day, 3-21-00. The broker called very mad and told me they could not do this and the loan was done, he would talk to them and told me not to worry. Result, NO LOAN NO CLOSING. Question, he advised me to sue them, do I have any grounds for a lawsuit, after all I did speak to and offer info?? The builders salesman advises that the money I have paid down $ 5,000.00 for carpet and tile upgrades, and $ 1,000.00 for title is not refundable?? can the builder keep my $$ and sell the home to someone else?? The broker has sent me to a backup lender whom I have heard is terrible, Downey, and the fees, interest rate and payment is much higher than the first loan, total closing costs also increased from $ 3,000 to over $ 5,000. I don't think im in a position to find a new broker due to the possibility of losing my $ 6,000, but the higher payments,new lender and only a week to close is very stressfull to say the least.Builder says I have till 03-31-00 to close or I lose my money paid and home. HELP HELP HELP stachybotris@aol.com
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| | Thursday, March 23, 2000 - 04:59 am Never, never, never, ever, ever, ever sign contracts for houses without a written mortgage loan commitment. Ever. The broker submitted the loan to the Internet company you talked to? It was the same company? Why would you lose the $6,000 by switching loan brokers? What do those two things have to do with each other? It's a societal thing. People think we live in a fast-paced, no problems, computerized, infallibly-accurate world. But that's certrainly not true in mortgage lending-- a world run by 40, 50, and 60-year old guys who've "been in the bidness" a long time, but are technologically illiterate because they don't see a reason to beat E-Loan right now. They figure that by the time they really have to know how to use a friggin' PC, they'll be retired. So, in the meantime, they just mark time using the same old-boy rules as they always have: string along the client giving no written guarantees and maybe it will close, and BS your way through everything with phone calls and verbal communication so there's no trail of evidence in case something like this happens. Their data is crap, and their procedures are crap. Some even admit it: "Today what you're seeing on the Internet is a lot of --a web facade front of the same ugly process out there." http://www.creditscoring.com/pages/forumtranscript.htm#page277 They figure this kind of thing (losing litigation) into their plan, though. Talk to a lawyer.
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| | Thursday, March 23, 2000 - 04:13 pm Where in AZ are you. If your in Phoenix, I may be able to help. I have a good mortgage broker I can recommend to you. I'll send you a private email with his info. I don't get anything for recommending him. I'm a real estate investor and I've sent him several of my buyers and he was able to get them qualified when no one else would. I think he could probably help you get a loan by next Friday. Q: The builders salesman advises that the money I have paid down $ 5,000.00 for carpet and tile upgrades, and $ 1,000.00 for title is not refundable?? A: Your purchase and sales agreement should state the penalties for default. Sounds like your probably out of luck on that one. Although I would really recommend reading your purchase and sales agreement. It may provide for a financing contingency or at least an extension of the closing date. Good luck, Mark DeWitt mark@valleyhomebuyers.com
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| | Thursday, March 23, 2000 - 06:23 pm Be sure to update us on what happens!
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| | Saturday, March 25, 2000 - 03:15 pm That's one of the potential problems I forgot to mention in my previous posting on New Homes. Builder contracts are written in favor of the builder. Often builders will require that *their* contract be used even if the buyer is represented by his own broker. Usually, builders will pay the broker the commission to stay out of their way. Much of the info at http://www.bayhouse.com/auction.html also applies to builders. At the very least every buyer should have the contract reviewed and explained by an experienced broker or attorney PRIOR to signing. At this point, I agree with Mark's advice, reading the sales agreement is a good start. If you aren't sure what the contract really means, HIRE someone to explain it to you. Does Arizona have any kind of consumer protection laws?
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