1st Time Homebuyer Disaster.... Please Help

[Greg D.]

Hey everyone, I posted a week or so ago about trying to get out of a contract to purchase. The sellers are unwilling unless I provide a mortgage denial letter.

I met with a mortgage guy on 12/10. I was approved by the mortgage guy, but he told me the mortgage payment was slightly above/barely acceptable in terms of a percentage of my gross income. This mortgage included a flood insurance quote that was much lower then the actual ($35 a month placeholder when in reality it should be $70-$80) In addition, this mortgage had me paying the closing costs in cash(approx $9,000).

On Wednesday 12/14, I reached out to mortgage guy and said I was uncomfortable with the mortgage payment. I explained to him the error in the flood insurance quote and how I would prefer to finance the closing costs. He stated he would rather see me in the $290,000 range rather then the $309,000 purchase I was about to make. I asked him if he could provide a letter (mortgage denial), he agreed and said he would have the underwriters provide one. Via email, I asked him for the status of the mortgage denial letter, and he said he had requested one and would pass it on as soon as he received it.

I told my attorney I would be receiving the denial letter, and after he spoke with the seller's attorney he informed me that the contract would be terminated upon receiving the mortgage denial letter and that it was not necessary to go thru with the inspection.

Monday 12/19, my attorney and realtor are pressing for the mortgage denial letter. All of our calls to the mortgage guy go unreturned. 

Tuesday 12/20 I start calling the branch and his supervisor. I get a text stating he is in a meeting until 4:00 PM Eastern. He does not call me but answers a call to his personal cell phone at 4:30 PM Eastern. He finally tells me he is having issues providing the letter and that the higher ups approve me for a mortgage despite his "proof" (mortgage payment as a % of gross income) and suggestion that I am not qualified. He tells me he is working on it and is confident he will get it done. He sends me a text that he ripped off some emails and will "get it done" but it will have to wait until tomorrow. 

Wednesday 12/21 - The mortgage guy does not respond to texts, and calls to his cell phone or office the entire day. He also ignores calls from my attorney.

I am suppose to have a mortgage by tomorrow 12/22. I have a feeling the mortgage guy will conveniently come out of the wood work and say he is unable to provide a mortgage denial letter. At this point, I wouldn't even want to accept a mortgage from him after the game he has been playing with me the past week. I've asked my attorney if I should go to another bank and his response has been .... "I will try to contact the mortgage guy again"

I never provided the initial $1,000 deposit. They have been asking for the second deposit.

I'm lost, any type of direction/suggestion would be helpful.

[Joshua Eboh]

I sorry to tell you that the mortgage guy you are dealing with is not professional or ethical.  Legally, Respa (a law) requires Loan officers to respond to your loan within 30 days with a denial letter if they cannot do the loan. The mortgage loan officer also does not get the denial letter from the underwriter, they can generate that letter.  I suspect he still has hope that you will and can close so he's stringing you along.  I would write a letter to your state commissioner and report the loan officer if i was you. Just to put them on alert. I'm sorry you are going through this craziness and can't even imagine the stress you are under. Hope all works out well. Let me know if i can help in anyway or if you need more details.