Debt Slayer

to all of those who helped, read my posts, or even said a nice word of encouragement. I have learned a lot thanks for this wonderful board. I started out with a FICO in the high 500's now I have 700 scores. Credit board has played a huge role in helping me realize my dream of owning my own home. THANK YOU!!!!

Bump

Can you legally go after a mortgage broker for being incompetent, deceitful and misleading? This is a serious question by the way. If you are familiar with my ordeal you know that 10 days before closing the LO informed me that the bank wants to 15% instead 5% down; thats $12,000 more than what I intended to put down. A week later, I got another email saying that my loan has been "approved" (Im using that term very lightly) with 11% down. I was ecstatic because that meant I wouldnt have to clean out my savings and 401k. They supposedly started working with the UW two days ago so we can get the commitment. The LO kept saying that we should hear back "soon". I received another email tonight saying that the offer is BACK at 15% down because the UW was unable to pass up the loan to an investor with 11% down due to the fact that Im buying a condo. So this is for all the LO's on this board; What IS THIS GUY doing? Have you ever heard of such a thing? Why do you send people the GFE and TIL if the figures are NO WHERE near what they will actually be when the loan goes through UW? I am emotionally and financially invested in this. I m being held hostage to this process due to their lack of communication and competence. I was made to believe that the loan will be closed on time. I trusted this LO (Im such an salamander). What is someone like me to do?

Part of the preapproval process should have been to run the automated - that is what most do BEFORE issuing a preapproval letter - is this a broker or a banker? I would go over their head to try and find out what happened because none of this adds up? B he is a broker

So it suffice to say that this weekend was one from hell. All my stuff is packed, vacate notice already given and I don't know where I'll sleep next week. This has been a nightmare. Like most people, I like stability. I am going after this guy [legally] if/when deal gets done. I'm not saying he knowingly did something wrong, but I will find out what happened exactly. Do LOs willingly provide the original pre-approval findings? there must be a paperwork trail. @jop3 " This LO just sounds lazy or inexperienced or a little of both.": You are right. I saw signs early on of "clumsiness" but I was too far into the process and short on time to go with another lender. He would forget to send me paper to sign and not respond to my emails until I ping him.

Thats exactly what I think happened...it makes no sense to go from pre-approved with 5% to declined...otherwise the pre-approval process is useless. This LO said that the reason they need more money down is because my credit profile has changed...which is true; my score shot up 40 points and there hasn't been any negative hits whatsoever. Brian - you are in the business...what is the likelihood of this scenario happening? Keep in mind that my credit profile did not get any worse. Is the pre-approval process different than the automated UW? Do some LO's use this tactic to get people's business and give them false hopes to later inform them that they need more money down?

Im pretty confident that he never ran my pre approval through anything whatsoever because now he is saying the reason they want more money is because of lack of credit and length of account history. DUH!! Arent those one of the main factors people look at before approving any type of loan?? Im no LO but that explanation sounds pretty weak to me. So based on this logic, the pre-approval is ABSOLUTELY worthless because it all comes down to the underwriting (given that there are no major changes to the credit profile) My mid score is 700 btw

I started the loan process about a month ago. Credit score was above minimum, basically I met all the guidelines (income, LTV ABC XYZ etc etc) I was told I could do 5% down for a conventional loan. I was sent a GFE, signed it and sent it back. I was later asked for the basic paperwork (bank statements, W2...etc etc) basically they asked for it I had it. Today the LO was supposed to run the application through the automated underwriter...I get an email saying they couldn't get it approved because some guidelines have changed and now they can only approve it with 15% down. Fannie and Freedie no longer accept 5% down loans because from time to time they tweak their tolerances on different guidelines. When asked why I got pre-approved with 5%, I was told that the pre-approval process is different than the actual underwriting. OH AND BY THE WAY I m supposed to close in 10 days!!!!

I guess a freeze wont help me...I want to make sure my score stays exactly the same til I close on the house. I am sick tired of the daily fluctuation...it literally can up or down (mostly down) by 20-30 points Thanks for your replies!

My mortgage broker just informed me that my middle score is 700!! I m on cloud nine...Its been a long treacherous process to rebuild my credit and honestly part of me doesn't want to believe it. I want to freeze all 3 scores til about a week before we close. Does the freeze guarantee all scores would remain unchanged?

Did they remove it quickly and if so, did it boost your score? Thanks!

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you both are right...Im leaning towards another program now...HomePath doesnt sound that exciting anymore Thank you

I realize there is no PMI but the rate seems a bit high to me ( the property is in MA) Estimated Rate: 5.500% Estimated APR: 5.598% 2nd Mortgage:..........................$ Estimated Loan Type: Conventional Estimated Sales Price: 159,900.00 Estimated Base Loan: 155,103.00 Estimated Total Loan: 155,103.00 Other:.....................................$ 0.00 Principal & Interest: .................$ 880.66 HOA Dues:..............................$ Mortgage Insurance:................$ Property Tax: ..........................$ 199.75 Hazard Insurance:....................$ 50.00 Total Est. Monthly Pmt:........$ 1,130.41 CLOSING COSTS: Origination Fee $785.00 Points $ Appraisal Fee $475.00 Credit Report $65.00 FHA Mortgage Insurance Premium (Financed) $ VA Funding Fee (Financed) $ Rural Development Guaranty Fee (Financed) $ Flood Certification $15.00 Pest Inspection $ Water Test $ Home Inspection $ Government Recording $365.00 Transfer Tax (City/County/State) $ Other (Line 809): $ Other (Line 810): $ Other (Line 907): $ Other (Line 1305): Survey (Mtg Loan Inspection) $ Other (Line 1306): $ $3,370.00 Total Title Company Charges $1,279.00 Owners Title Insurance $386.00 TOTAL CLOSING COSTS $3,370.00 PRE-PAID ITEMS: Items Required by Lender to be Paid in Advance Daily Interest Charges for 1 days $23.70 1 Year of Homeowner's Hazard Insurance Premium $600.00 Reserves Deposited with Lender: 3 Months of monthly Hazard Insurance Payments $150.00 5 Months of monthly Tax & Assessment Payments $998.75 TOTAL PRE-PAID ITEMS: 1,772.45 SUBTOTAL OF CLOSING COSTS PLUS PRE-PAID ITEMS: $5,142.45 PLUS DOWNPAYMENT: $4,797.00 LESS ANY CREDITS: 1. Seller Paid Costs -$ 2. -$ Total Credits: -$ 0.00 TOTAL CASH DUE FROM BORROWER(S) AT CLOSING: $9,939.45

I m getting ready to send a dispute letter regarding a BOA account where I was an authorized user and removed myself over a year ago. The account is still listed as negative on EQ. What key words should I use? Account Number:XXXXXXX Status:PAYS AS AGREED Account Owner:Terminated High Credit:$2,061 Type of Account :RevolvingCredit Term Duration: Terms F0 requency:Monthly (due every month) Date Opened:05/2008 Balance: Date Reported:02/2011 Amount Past Due: Date of Last Payment:01/2011 Actual Payment Amount: Scheduled Payment Amount:$88 Date of Last Activity:02/2011 Date Major Delinquency First Reported: Months Reviewed:33 Creditor Classification: Activity Designator:N/A Charge Off Amount: Deferred Payment Start Date: Balloon Payment Amount: Balloon Payment Date: Date Closed: Type of Loan:Credit Card Date of First Delinquency:N/A Comments: