denise d

My husband and I are in the process of purchasing a house and run up against a glitch. I am hoping maybe someone here can give me some insight into the process to see where the problem came from.

Essentially we should be closing on a house tomorrow and something came up that has been resolved since 2009. We are willing to fix it, but it seems really crazy that the paperwork has read the same thing since we started this process in April. Why are they telling us about it 22 hours before we are supposed to get the keys. :evil:

Again, any insight into the process would help.

Nanamoms

This is not an unusual scenario!! Everything seems to wait until last minute. As Treasurer of our Homeowners Association, I will get calls a couple of hours from closing to clear up liens from past due assessments!!

AFQSinc

I was a processor for a major bank. I did both prime and sub-prime loans. I can tell you that there are a couple of levels of underwriting that a loan undergoes. Every underwriter has things that are red flags for them, things that they are willing to accept, etc. The resolution of the issue may have been ok to the initial underwriter but then under final review the senior u/w may not like the condition.

Sometimes things are delayed intentionally to have funding occur at a certain time. I've been on both sides of this table - as processor and buyer. It is frustrating to say the least. Hopefully, things will get cleared up as quickly as possible and you can close on time.

denise d

Thanks.

We are just sort of stuck. There was a medical bill from 2008 that went to small claims ct.... essentially it not a significant amount, but whatever...

My hubby appeared in ct and satisfied the judgement. No problems. He did contest the lawyers fees and the docket reflected that. Anyway fast forward to yesterday. Underwriter says it is a no go, because the case was filed in my name and my husband's name. No one contests that the amount agreed to by him and the lawyer is paid, but the medical co will not "release" the debt, because they filed the legal fees under my name and since I am a Stay at home mom, I have no assets, they filed a judgement against me for the legal fees. The crappy thing is, we had no idea, we paid the bill and thought it was paid.

Seriously, we would have just paid the legal fees, if we knew that they were tacked on to my name.

Also, we can't help but to think that this should have been red flagged in April when we started this process... not now.

Thanks for letting me vent. I am just so at a loss for what the process is, I don't know if this is something that is a big deal or not. Clearly, it is to us, but does this sort of thing happen all of the time?!

AFQSinc

Sadly, it does happen frequently. Many times, and I'm sure more frequently in these economic times, your credit is run shortly before your loan is due to close. The bank is looking for any last minute large purchases or signs that large sums of money (like for the downpayment or debt payments) have been borrowed. You would not believe how many people go out and finance new cars, furniture, trips, just before they close on their home loan. So, they may have done a quick credit check in the beginning and done a fast review and missed it. Then after the second check is run and they are really going over it someone noticed it.

It is a tough process to go through. Vent all you like. I know how all consuming buying a house is. Are you working with a broker or the bank directly?

denise d

Thanks!!!

We are working with our bank directly.

We just can't believe that a debt that was paid in full (to our knowledge) in 2009 can give us this many fits. Why in the heck have we not heard about this since then?

Hubby went and paid the debt that was in my name and is now on his way to have the courthouse fix the issue and fax a letter to the underwriter. Hopefully, this can be done by 3 our time so the closing documents can be sent for tomorrow.

Thanks!

denise d

We had the worst loan processor ever, but we have final approval. Closing documents were sent and closing is scheduled for 3:00 on Monday.

The processor did not even tell us when we had final approval. My hubby called to complain to a supervisor and the customer service rep told him that we have had final approval since noon. He called at 4. :banghead:

AFQSinc

Wow! That is terrible. Well, the upside is that everything is done and you're closing on Monday! Also, thankfully, you don't have to go through the whole weekend wondering if you're going to be able to close. :)

denise d

That is what we thought. We can see the light at the end of the tunnel!! ;)