I am trying to buy a home in Maryland I was approved for a loan and put a contract on the home sometime around 2/10. The settlement date was set for 4/3(this friday!). It states on the letter from the lender that
"The applicant has been approved by Chase Home Mortgage to purchase a property with the sales price of $91,000. It is our intention to provide a conventional mortgage for 90% of the contract sales price or appraised value whichever is less. Applicant’s credit, income, and assets have been reviewed and meet all program requirements. This approval is not contingent on the sale or settlement of any other real estate.
conditions:
Satisfactory appraisal of subject property
telephone re-verification of employment 24 hours prior to settlement."
Now 4 days before settlement the lender is telling me that 10% of the mortgage has to be insured by one of the major mortgage companies(in 2 months he failed to mention this) Apparently none of these mortgage companies are willing to insure this 10% even though chase says my credit is good enough to give me the loan.(ive been with my parents my whole life all my bills except my credit card, (car insurance, cell phone) are part of somekind of family plan so i pay my parents for them. This is not enough credit for them so now im being told I can’t get this loan without putting 20% down which i do not have. Is there any legal actions I can take in this matter? Maybe force Chase to insure the whole loan since they approved 90% of the loan? Is that possible? Also I have already paid 400$ for the appraisal I would like to get that back but i dont think its worth hiring a lawyer for. Are there any govt. organizations that exist to deal with lenders like this that might make this go away? Any suggestions that might help are welcome.
Glenn_S said:
Apr 03, 09 at 1:38 pmI sold a property in San Diego several years ago and had a pre-approval letter from the buyers lender. Like you, in the last few days the lender pulled out because the buyer couldn’t verify income.
I sued the Realtor and the mortgage broker that represented the buyer in small claims court because of their written statements about the buyers ability to purchase my property. I ended up winning about $3500, my costs while the property was tied up.
I would say that you have a good case against Chase, but you have to show in monetary terms how you were damaged.
tampabaycreditdoctor said:
Apr 03, 09 at 10:38 pmMy answer would be to contact Chase and let them know you would like to turn this into an FHA file. It appears the mortgage insurance companies are not thrilled with your lack of credit lines or trade lines. I would do this only after I verified that the property in question is not eligible for USDA Guaranteed financing. If the property is eligible and you are as well, you can finance it with no money down and there will be no mortgage insurance. Chase originates more than half of those loans on a national basis. I know you have a closing date, and hopefully seller wants to sell and you want to buy.
A good loan officer should be able to make it happen for you on either USDA or FHA, and you’ll be much better off for it. Ask the seller for an extension and let the seller know you have good credit. That will count for alot with both HUD and USDA. In fact, if your middle score is 620, you’ll sail right through. I would also emphazise to the seller you’ve made every effort to make it happen. They already have your documents, ask for it to be rushed. Those are my suggestions and the plan I would implement.