All Forum Posts by: Lucy Ahl

This deal was not for owner occupant but for a flip. The eleventh hour deal just fell through after we jumped through hoops getting them every piece of paper they needed to close this deal by tonight. I just lost $10,000 in earnest money, will be sued for the sellers agent's commission, and my agent doesn't get a dime. After all paperwork went to their attorney three days ago, they told us they couldn't fund to a partnership or an LLC, had to be a corporation. and yet ALL OUR PAPERWORK states we are an LLC.

Why in God's name did they not tell us up front? Now, it's time to file a civil lawsuit as they committed a crime. They lead us on with Proof of Funds letter, gave them EVERYTHING they needed. And guess what? They knew all along they weren't going to fund this flip. And to top it off, the letter stated 'with capital up to $300,000' and found out from the SOW we provided to them for $65,000 in rehab fees, they were only giving us $40,000. 

Is the way these lenders do business? Is this the norm? 

I'm more than just angry.

Yes, and the saga continues. Was told today they had everything they wanted and then opps, something else has popped up now. Now they want a commitment from the attorney listing them as Mortgages. You would think a company who claims to do hundreds of these things a month would have their act together and know what they needed and communicate it to us. But hey, this seems to be their MO. Extremely frustrating. But boy, what a lesson learned on our first flip working with a company like this. Believe me, the next one we will have all the questions answered prior to doing business with anyone again. And now attorney won't schedule a set time because not sure what else they are going to ask for, so still in la-la land and not sure if closing will happen by Friday. And by then, too late. Seller refuses to extend closing date. And I lose all my money. 

Who do they have to answer to or do they just get to run amok and do whatever they want, no matter how unreasonable? 

 I honestly don't know what type of lender they are. I'm not knocking them either just frustrated that my money is tied up in a deal that may fall through and only because the communication was scattered. The seller is so pissed off, he can't wait until Friday to snatch up my $10 gs and put the house back on the market. Easy 10 for him. He refuses to extend the deadline. 

 I will keep your info as I'm sure if this deal goes through, we won't use them again. It's unfortunate. I'm pretty easy to work with if I know what is required. Our letter specifically stated no appraisal necessary. Thank you!

Nick,

Thanks for explaining. Yes, there has been a huge miscommunication between parties and has been quite frustrating. Though this is my first flip, I am not unfamiliar with lenders. However, when I’m told on the day of closing they need an appraisal and won’t be funding to close, that isn’t professional. Especially when I have in writing no appraisal was required.

Seller is threatening to sue and keep my earnest money doesn’t add merit to the situation. On top of that the lender is now threatening to pull financing because ‘I called him too much today’ and sent an email asking for an update. Mind you, we have never communicated prior as another one of the investors was dealing with him.

If instructions would have been given as a whole, what we were expected to produce verses what they did rather than piece meal it at critical times, there would be no problem and no one would be upset. The day of closing we were told we needed an appraisal. It was  not indicated they were going to do it. We hired and paid an appraisal co to come out on a Saturday so lender would have it on Monday. Then they tell me they didn’t get it and once resent said they couldn’t use because it didn’t include the appraisal value with reno. Another thing not communicated to us.

This has been the worst experience. Asking questions is considered harassment now? 

I appreciate the info. It’s more than I got from this company without someone talking over me and then saying they don’t like how I’m talking to them!  

I've noticed several years back some negative reviews for Insula Capital. I'm having a very hard time with them and on the verge of losing my earnest money on a house purchased to flip. After getting the funds letter, which clearly states no appraisal was needed for this property, at the day of the closing, they came back and said no funds will be released until we get an appraisal. We hired an appraisal company to do an appraisal knowing we were under the gun because now the seller is threatening to sue me and keep my earnest money. We were threatened by our rep that if we do not get the appraisal, they will pull all funding. I love all this last minute BS they are pulling. Had to come up with the contractor's estimate too. So, now that they have everything, they are stating they can't use my appraisal. They have to order it. WTH? Then they 'circled back' and are now saying they may be able to use the appraisal but need the appraiser to give them a price on what the house will go for once the reno is done. Huh? How does he know what we are doing the house? They have the comps in the area. This may be my first rodeo in flipping but not my first rodeo in construction. With 25 years under my belt in construction and corporate environments, this is not the way you do business. Won't be using them again on the next flip that's for sure.