Go Back  DVD Talk Forum > General Discussions > Other Talk
Reload this Page >

I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Other Talk "Otterville" plus Religion/Politics

I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Old 11-19-10, 11:45 PM
  #1  
DVD Talk Legend
Thread Starter
 
Abob Teff's Avatar
 
Join Date: Aug 1999
Location: Not necessarily Formerly known as Solid Snake
Posts: 20,872
Received 31 Likes on 27 Posts
I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Wow ... what a long strange trip it's been ... take my ramblings here as a plea for help, a solicitation of Otter advice (yes ... I do know what that is worth ... and I can use a good laugh), or just general venting.

In September my wife and I put in an offer on a home. The offer was accepted with a 30-day closing date. My lender requested 60-days, but the seller would not accept; my lender said they should be able to do it in 30 days.

As the closing date approached, I asked the lender and my realtor what I needed to do -- things were going too smoothly. (I am generally paranoid and have gotten used to things in my life being FUBAR. Someday I'll tell you about my short non-stint in the Army that never actually happened.) I was assured that everything was fine.

About a week before closing my mortgage broker called me and stated that they were having a problem verifying information. They suspected it was due to the way that my current address was listed (i.e., "Street" vs. "Drive"), but assured me it would be fine once the information was resubmitted. Three days later my mortgage broker calls again and advises that they need copies of my tax returns because they cannot verify my information due to the address problem. I informed her that if they were verifying information with the IRS, they should use my PO box, not my physical address. Had they told me the first time that it was the IRS they were dealing with, we could have avoided that problem. This issue caused us to miss the initial closing date and we obtained an extension for 7 more days from the seller.

As the new date approached, my mortgage broker calls and informs me that we were going to miss the closing date again because they spent two days trying to re-verify my salary information through my employer because I had worked significant ovetime in 2008, but not in 2009 (I had already explained this; it was due to a change in my job duties). After two days, they decided they really didn't need the information anyway. Add to this that the bank issuing the mortgage has a 72-hour wait from the point the underwriter signs off (the first that I have heard of this). We obtained another extension from the seller. At this point I have to pay another 1/2 month of rent.

A day before closing, my mortgage broker calls me again and informs me that we need a second appraisal and nobody knew this. This is allegedly due to new HUD requirements (the property had been flipped). At that point I called new lenders ... all would have set us back another week to two weeks (time we didn't have). One that I spoke with read the new HUD policies while I was on the phone ... from what we could tell, this should only have applied had the seller been doubling his purchase price (which he was not).

We wait another 7 days for the appraisal to come back. We have to obtain another extension from the seller (which I was sweating on this one, but he did grant it). We finally get the sign off from the underwriter ... we wait the 72 hours ... Two days before closing we do a final walk-through and find out that the furnace is shot (the seller was putting a new blower on it when our inspector was there so it could not be inspected ... we turned it on and it sounded like it was going to explode -- it actually sucked the filter out of its brackets!). The seller arranges to have a brand new furnace installed.

We finally closed yesterday at 4:00. But before closing, my closing costs (what I needed to come to the table with) had gone up by approximately $700. My mortgage broker explained that the increase was due to the fact that we didn't close at the originally scheduled time, so a credit from the lender changed. We exchange some border-line not-pleasant e-mails in which I explain that I don't feel that I should be the one paying these costs since I am not the one responsible for the delays. My argument goes nowhere.

So, we closed yesterday at 4:00. Today the wife had to work and the kids were in school, but I took the day off to get an early start on moving. I spend the day moving and running a few errands, including changing out a faucet at the new house. At 6:30 my realtor calls me and tells me that we have to stop moving and get everything out of the house -- the bank did not send a check to the seller and, at this point, is refusing to fund the transaction.

I spend the next hour and a half calling the mortgage broker's cell phone (she should not have given me that number) every 15 minutes until she finally calls me back.

One of the appraisals listed a need for GFCI outlets in the bathrooms and the kitchen. The bank is stating that they cannot approve the loan (which has already been approved) due to this "violation." Everybody (mortgage broker, my realtor, the seller's realtor) seems to agree that this is no longer a HUD requirement, yet the appraiser is apparently the only person who come clear this up by removing it from the report. My mortgage broker claims that she cannot legally call the appraiser (that she hired!) to request this and she passed the appraiser's number along to the seller's realtor to have him make the call. And that is where we are stuck until tomorrow morning (actually, probably until Tuesday).

SO ... do I have any recourse? Of course this whole process has caused emotional distress (more on my wife). I believe that life is full of stress, suck it up; so that is not what I am talking about. Do I have any financial recourse for the additional costs that I have incurred due to my broker's apparent incompetence? Just off the top of my head I am out and extra 1/2 month's rent (soon to become a full month), lost credit from the lender, and now a cancellation fee on a rental truck ... in addition to a vacation day that I spent moving and un-moving.

Otters, if you are still reading ... thoughts? I'm sure I probably glossed through this and missed some stuff due to my current state of mind. I will answer any clarifying questions ... and hopefully laugh at any ribbing that you have to offer.

Before you even offer this advice: No ... peeing in her butt won't help.
Old 11-19-10, 11:58 PM
  #2  
DVD Talk Limited Edition
 
Jack Straw's Avatar
 
Join Date: May 1999
Location: So. Calif.
Posts: 5,132
Received 2 Likes on 1 Post
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

If the bank did not fund the transaction to the seller, then technically you never closed. You should not have started moving in until you were informed by escrow all monies had been dispersed and the deed to the house had been recorded in your name making you the legal owner. Just hope that the seller gives you the necessary time to meet and clear all of the lender's contingent requirements to fund, which they probably will or should given how close you are. I'm sure they don't want to have to find another buyer at this late juncture and you seem very determined to do whatever is necessary to close the deal.

I agree with you, buying a house can (and usually is) a harrowing ordeal that rarely goes smoothly or as expected.
Old 11-20-10, 12:05 AM
  #3  
DVD Talk Platinum Edition
 
movie diva's Avatar
 
Join Date: Jan 2003
Posts: 3,365
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Sorry to hear hope I never have to go thru closing again, burn the bank down.
Old 11-20-10, 12:27 AM
  #4  
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,201
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Banks can't contact the appraiser. The bank actually hires a clearing house to get them an appraiser. This is a result of all the bad loans, etc. when they believed their might be collusion going on. A good realtor would contact the appraiser for the bank, however.

Probably not much you can do. They should not have had you move anything until it did actually close (funded). And unfortunately, this is not an uncommon story. The state of lending today means this happens quite a bid. And you likely have zero recourse.

Sorry man.
Old 11-20-10, 12:31 AM
  #5  
DVD Talk Legend
 
Heat's Avatar
 
Join Date: Dec 2000
Location: Central Illinois
Posts: 16,701
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Why were you using a mortgage broker and not a bank?

I went through United Community Bank when I bought my house a year ago, the loan went smoothly.
Old 11-20-10, 12:34 AM
  #6  
DVD Talk Legend
 
Join Date: Apr 2002
Posts: 20,726
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Sorry about your troubles. It's definitely stressful. I could re-finance and get a better rate, but going thru the process and closing costs bs isn't worth it to me.

Never heard of an appraisal talking about GFCI outlets, seems like that'd for the inspector's report.

Oh and [otter]this is why I only pay cash for my mansions [/otter]
Old 11-20-10, 12:53 AM
  #7  
DVD Talk Legend
Thread Starter
 
Abob Teff's Avatar
 
Join Date: Aug 1999
Location: Not necessarily Formerly known as Solid Snake
Posts: 20,872
Received 31 Likes on 27 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

JackStraw and KVRDave-- the broker claims the sale is funded. Guess she'll find out otherwise when she goes to cash her check (the title company/attorney already put stop-pays on them). I guess I'll have more info on this tomorrow. We were at the table when everybody's checks were handed out and were told that it was a done deal.

Heat -- Credit history. I talked to a few banks and we were just shy of their mark. We have spent the last few years cleaning it up (young and dumb, took a bankruptcy 10 years ago, paying the price now). The frustrating thing is that a few years ago mortgages were being handed out like candy, but we took the responsible route and worked to clean up our credit. Once we got to where we needed to be, the economy crashed and we were set back another 12+ months. We would have waited a little longer and got the scores up a little higher, but this house was/is an incredible opportunity.

Movie Diva -- Long live Tyler Durden!
Old 11-20-10, 01:29 AM
  #8  
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,201
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by Abob Teff View Post
JackStraw and KVRDave-- the broker claims the sale is funded. Guess she'll find out otherwise when she goes to cash her check (the title company/attorney already put stop-pays on them). I guess I'll have more info on this tomorrow. We were at the table when everybody's checks were handed out and were told that it was a done deal.
Hmmm, that is interesting. We tend to say that when it funds it is closed, but the truth is that it is closed when the deed records. If the deed was recorded with the county, and the checks were issues (and they were) then you may very well have a case. Actually, not you, but the seller, because if it recorded, it is your house according to the county and there is a note against it for the bank. Around here, no checks are given out until the paperwork is recorded. I can't imagine anyone does it differently.
Old 11-20-10, 01:30 AM
  #9  
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,201
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by Heat View Post
Why were you using a mortgage broker and not a bank?

I went through United Community Bank when I bought my house a year ago, the loan went smoothly.
Having done hundreds through both, they are equal. A mortgage broker is generally still using a bank. I've seen both screw them up. They get blown up by the underwriter, and that is the same in either case.
Old 11-20-10, 01:45 AM
  #10  
DVD Talk Legend
Thread Starter
 
Abob Teff's Avatar
 
Join Date: Aug 1999
Location: Not necessarily Formerly known as Solid Snake
Posts: 20,872
Received 31 Likes on 27 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

KVRDave -- not recorded yet -- the title company/attorney is still holding all the cards (to the best of my knowledge). Checks were handed out to the broker and both realtors at the end of the closing. I was the only person in the room who didn't get a check (or anything else for that matter!).
Old 11-20-10, 03:14 AM
  #11  
DVD Talk Hall of Fame
 
Join Date: Jan 2000
Location: Somewhere out there... YES THERE!!!
Posts: 7,936
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

That is just wrong on so many levels. I really have no advice man except maybe program a virus that you put in the credit unions mainframe so that those fractions of a cent get moved to a separate account (Just make sure the decimal point is in the right place). I heard they did it in Superman 3.

Sucks though man, makes me frightened if I ever try to go get a house someday.
Old 11-20-10, 07:24 AM
  #12  
DVD Talk Hero
 
Join Date: Aug 2001
Location: in da cloud
Posts: 26,196
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Mortgage broker is just a goon and a sales person. The underwriter has a computer program that tells him what is needed and is the only one who can approve a loan
Old 11-20-10, 08:24 AM
  #13  
DVD Talk Platinum Edition
 
Join Date: Oct 2003
Location: NY
Posts: 3,546
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Maybe Chuck Norris can help you. I am sure he will find a way to convince everybody that the house is yours!








Really sorry mate, sounds like I would have blown a few head gaskets during that ordeal (not that it would have done any good....). I hope it all works out. It's the old story, if you try to do it right you get f..ked.
Old 11-20-10, 08:30 AM
  #14  
DVD Talk Godfather
 
The Bus's Avatar
 
Join Date: Aug 2001
Location: New York
Posts: 54,876
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by kvrdave View Post
Having done hundreds through both, they are equal. A mortgage broker is generally still using a bank. I've seen both screw them up. They get blown up by the underwriter, and that is the same in either case.


I don't understand how everyone would be OK with a dry closing these days. I hope things go back to normal at some point. The state of the industry is ridiculous.
Old 11-20-10, 08:30 AM
  #15  
DVD Talk Godfather
 
The Bus's Avatar
 
Join Date: Aug 2001
Location: New York
Posts: 54,876
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by al_bundy View Post
Mortgage broker is just a goon and a sales person. The underwriter has a computer program that tells him what is needed and is the only one who can approve a loan
I'm sure a computer tells you how to do your job too.
Old 11-20-10, 08:46 AM
  #16  
DVD Talk Legend
 
Join Date: Jul 2005
Location: Working for Gizmonic Institute
Posts: 10,430
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by Abob Teff View Post
I was the only person in the room who didn't get a check (or anything else for that matter!).
Oh, you got something...



...Hope they used lube.
Old 11-20-10, 08:57 AM
  #17  
DVD Talk Hero
 
Join Date: Jun 2000
Location: Words
Posts: 28,207
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by The Bus View Post


I don't understand how everyone would be OK with a dry closing these days. I hope things go back to normal at some point. The state of the industry is ridiculous.
A "dry closing" sounds painful!
Old 11-20-10, 09:26 AM
  #18  
DVD Talk Platinum Edition
 
Join Date: Oct 2003
Location: NY
Posts: 3,546
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by crazyronin View Post
Oh, you got something...



...Hope they used lube.


Originally Posted by pedagogue View Post
A "dry closing" sounds painful!

Wow! Mind readers or what?
Old 11-20-10, 10:49 AM
  #19  
DVD Talk Legend
 
LurkerDan's Avatar
 
Join Date: Jan 2000
Location: The People's Republic of Boulder
Posts: 22,118
Received 7 Likes on 7 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by Heat View Post
Why were you using a mortgage broker and not a bank?

I went through United Community Bank when I bought my house a year ago, the loan went smoothly.
There is nothing inherently better about a bank. I have heard horror stories from both. I have used a mortgage broker to buy my house and to refi twice, and never had a problem, everything went very smoothly. And I got a great rate.
Old 11-20-10, 11:20 AM
  #20  
DVD Talk Legend
 
Join Date: Jun 2000
Location: NYC
Posts: 17,018
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Man, sorry to hear about all that crap you had to go through. For those thinking about buying a house for the first time, it's not always like that; my closing and refinancing couldn't have been smoother. (Full disclosure, though: my fiancée's brother is a mortgage broker and real estate agent, and he handled everything.)
Old 11-20-10, 12:06 PM
  #21  
DVD Talk Hero
 
Join Date: Aug 2001
Location: in da cloud
Posts: 26,196
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

when i sold my first place the bank accidentally sent the money to the wrong account so my buyer couldn't close. took a month to sort it out. find the money, requalify the buyer since their pay stubs and other documentation expired, etc
Old 11-20-10, 01:33 PM
  #22  
DVD Talk Legend
 
Join Date: Dec 1999
Location: Hail to the Redskins!
Posts: 24,884
Likes: 0
Received 1 Like on 1 Post
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by Abob Teff View Post
Before you even offer this advice: No ... peeing in her butt won't help.
Incorrect. It ALWAYS helps.
Old 11-20-10, 01:56 PM
  #23  
DVD Talk Limited Edition
 
Join Date: Nov 2004
Location: Pleasantville - in black & white ;P
Posts: 5,970
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by LurkerDan View Post
There is nothing inherently better about a bank. I have heard horror stories from both. I have used a mortgage broker to buy my house and to refi twice, and never had a problem, everything went very smoothly. And I got a great rate.
It's not so much bank vs mortgage broker. I agree both can suck.

But a LOCAL bank that cares about their customer service and their community image is less likely to pull this crap.

In every experience I've had with a mortgage broker it has sucked. In fact, I just had a deal close last month that read EXACTLY like the OPs. The only difference is we refused to leave the table/close due to the dry closing. We sat for 45 minutes while the closing attorney, the seller (REO property) and the buyer's lender/broker worked out the details. Mortgage brokers tend to over promise and under deliver. They will promise you the moon in the shortest time ever. They flat out LIE. They know once you've started the process it is a huge pain in the ass to change lenders. So they promise up front and they fail. Usually epic. Like this case.

Did you have a buyer's agent?

Last edited by mosquitobite; 11-20-10 at 07:19 PM. Reason: spelling
Old 11-20-10, 02:22 PM
  #24  
DVD Talk Hero
 
Join Date: Aug 2001
Location: in da cloud
Posts: 26,196
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

unless the bank is going to hold the loan, it's fannie mae, freddia mac, HUD and other agencies that back the loans that make these standards and the processes like this
Old 11-20-10, 05:27 PM
  #25  
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,201
Likes: 0
Received 0 Likes on 0 Posts
Re: I was a first-time homeowner for 26 hours! Now I'm not ... can I sue?

Originally Posted by al_bundy View Post
unless the bank is going to hold the loan, it's fannie mae, freddia mac, HUD and other agencies that back the loans that make these standards and the processes like this
FNMA, etc. don't hold the loan, they offer the loan insurance, so the bank still holds the loan (or sells it to another bank). Their standards do not stop loans. Underwriters who have swung too far in the other direction stop loans. It is so they can show their bosses how tough they are now (because they got their asses handed to them before).

And this story shows how that happens. All that they say they need (and why they are holding up the loan) could have been taken care of 20 days before closing, but it wasn't. And that is the fault of the underwriter who gives out the conditions to fund the loan.

Thread Tools
Search this Thread

Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.