My cash out refi situation.

[Sachin Bhat]

I purchased a SF home out of state and wanted to implement BRRRR strategy. I purchased this property through a wholesaler. That did not go well as I was hoped. Couple of the BP member asked me to write about my experience with the wholesaler which you can read about it, link is in the description.

So, after rehabbing, and renting the property I found a bank that seemed like had good rates and terms to do cash out refinance. The bank told me to create an account and upload the documents to the portal. I uploaded the documents right away and waited. I didn't hear back for couple of days then I contacted them. They said they don't see the documents. I informed them that I prefer to send the documents as email attachment. So, I sent the documents through email attachment, but, by this time we wasted one week already. Then they requested more documents and sent everything they asked for. That is another week. Then they said they are waiting on their undewriting team to approve my loan. That was almost two weeks waiting. Every time I called the person that I am talking to all he said is he send another email inquiring about the loan package, then we wait again. So almost one month gone by just this. Then they email be and said they requested an appraisal for the property. I felt sigh of relieve that we are finally moving forward. I waited for two days did not hear from anyone, not from the appraiser or the bank. So I called back, and the person said he sent an email to the appraisal desk to check the status, then we wait again. So, almost 5-6 weeks gone by now. Then I get a call from the appraiser and I advised him I am out of state and he can contact my property manager so she can set up a time for him to come by when tenants are available. After giving him the phone number for the property manager I waited for a week and my property manager or I hear from anybody. Not from the appraiser, not from the bank. So, I emailed my loan officer. He said he will check with the appraisal desk. 2-3 days gone by just to hear back from the appraisal desk. So, we are almost 8 weeks in and finally appraiser contacts my property manager and does the appraisal. It comes in very low. So we appreal it. It took another week for them to check everything and get back to us. Now they are asking us to get the foundation inspection and roof inspection by a GC and have the GC write a formal letter saying everything is fine. The reason for this is because the roof has different shingles and basement had water. We sent a letter explaining tenant has been living in the house for about 6 months. There is no leak detected. Also we installed new furnace in the basement and water dampness is from that. But they still need us to get this inspection. Not only it is costing more money for this it is taking up more time. In the mean time they send me an email saying my lock in rate is going to expire and they will charge me $12 per day to keep that rate. So, I am trying to have the property manager do the foundation inspection but most of the GC already have jobs and can't come do the inspection till next week, so, more delay in closing the loan. That is not all, when they initially told me our closing date I made offers on 3 more properties and planed it to close right after this loan closes. Guess what since this loan took so long the seller and the agent got upset and we had to release all the deals. Yes I lost earnest money on one of the property. We started this loan in June and it is still going on lol. How can I avoid this type of situation in the future? Is it there any recourse that I can take because they went over their closing time? Thank you.