All Forum Posts by: Greg D.

@Jay Dewberry

Thanks Jay. He is a real estate attorney. I've been contemplating hiring another attorney, I guess it couldn't hurt to get another set of eyes on the contract.

Thanks for the response @Joshua Eboh. 

Aside from reporting the mortgage loan officer, what should I do? I suspect he has been stringing me along as well. I would bet good money he responds tomorrow that he is unable to provide a mortgage denial letter. This would conveniently be the same day I need to obtain a mortgage by. I would hate to accept a mortgage by a lender who promised me a mortgage denial letter and then decided to ignore me/change his tune.

If I go to another bank and they provide a mortgage denial letter would that terminate the contract? What kind of questions should I be asking my attorney?

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.

@Wayne Brooks Thanks for being helpful. Any thoughts on my questions above?

Situation update.

Thanks to the community I asked my attorney about the financial contingency. You guys have all been a great help and of tremendous value.

His response "With regard to your mortgage, although a rejection letter from a lender would result in a failure of the financing contingency which would allow you to terminate the transaction, I must caution you that there must have been a good faith effort to obtain the mortgage financing. Given that the Sellers are aware of your desire to terminate this transaction, I would assume that they would seek confirmation of the efforts that you have made."

The mortgage lender who pre-qualified me during my offer stage of the process, has agreed that the mortgage payments are too high of a percentage of my gross income. He stated he would prefer I be something in a lower range."I have requested the letter upon our phone call today. I will get it to you when the underwriter sends It to me."

A couple of questions....

Should I schedule a home inspection for Saturday (the period runs out Monday) despite the fact I will have been rejected by my lender?

Do I need to go to another bank to look for a mortgage to show good faith? As per my credit report, "too many inquiries in last 12 month" has negatively effected my credit score. I assume that applying for mortgages will only result in a lower credit score and either more reject letters or other unfavorable mortgage options.

@Shannon K. That is what I am hoping to do right now. The mortgage payment as a percentage of my income seems unreasonably high. It it close to 50% of net income, and 35% of gross income. I just confirmed with my attorney that a lender reject letter may terminate the contract, but I will have to proof I acted in good faith trying to get a mortgage. 

The fact that the attorney never mentioned the financial contingency is a potential to terminate the contract until I asked is of concern.

My realtor is not confident the inspection will allow me to terminate the contract unless something major comes up.

I'm starting to lose confidence. I'm not sure if my realtor or attorney have my best interests in mind. Fortunately, I found an inspector on my own and did not use another referral. Feeling pretty helpless right now.

@Levi T.

It should appraise for at least the selling price. I have been approved for a mortgage (albeit at a much higher rate then I was pre qualified for). Can I request a rejection letter, despite already being approved? Can I ask them to re-evaluate my situation? Should I reach out to another lender in hopes of a rejection letter?

@Jim Keller

Thanks for sharing your experiences and giving me some hope I can move on. I'm hoping something can work out, I have definitely learned from this experience. 

I appreciate all of the responses. I will try to get a home inspection ASAP (I had one scheduled for Wednesday but was told by my realtor to cancel before she & my attorney decided it would be in my best interest to get one)

As I mentioned earlier, I am considering writing a letter and delivering it to the office of the seller. Explaining how I am a first time home buyer and made a mistake rushing into the deal (due to pressure from my realtor) and underestimated the costs. I did not intend to cause so many issues. I will offer for him to keep the deposit ($1,000) if he will allow me out of the contract. Is there any risk/downside to this action?

 Sent