Progress!

[Torvy]

Setback! We were supposed to close yesterday. Drove out the 2.5 hours from here. We were a few miles from the property when the rep from the bank called. Despite "final" approval and setting the closing, they did another employment verification. It seems my retired wife is unemployed. She told him that months ago. She also told him to use the equity in our current house and she was happy to share her investment portfolio info if needed. Seems that he neglected to share that info with the underwriters. Now they have to go back and review for a retired person...I worked in a bank and my last few years were managing a loan processing group. This should never happen. Unfortunately, we are over a barrel as it would take longer to switch lenders.

 

[Raul-02]

sounds like you have incompetent idiots to contend with. Either that or they want the newer higher interest rates and games like this are how they position themselves to demand them.

In the 1980s I had a mortgage at 13%.

 

[Torvy]

The rate is locked. I'm no fan of lawyers, but I would win that case if needed.

 

[ultrarunner]

When I was set to close the Seller called me and said very sorry it did not work out for you?

She said my loan denied in underwriting???

First, Wells Fargo never communicated with me and neither did Broker or Title Company.

This was 45 day closing and happened on day 42.

Underwriter said property is over 5 acres??? Well yes it is at 5.9 acres!

Over a month since appraisal and never brought up???

How does seller know and I don't?

Anyway I said still closing and was told no... not enough time and property is being withdrawn from market.

I said close as scheduled, paying cash.

Really found out who my friends were at the time... was able to pull it off and refi my existing home to pay everyone back...

 

[Torvy]

When I was set to close the Seller called me and said very sorry it did not work out for you?

She said my loan denied in underwriting???

First, Wells Fargo never communicated with me and neither did Broker or Title Company.

This was 45 day closing and happened on day 42.

Underwriter said property is over 5 acres??? Well yes it is at 5.9 acres!

Over a month since appraisal and never brought up???

How does seller know and I don't?

Anyway I said still closing and was told no... not enough time and property is being withdrawn from market.

I said close as scheduled, paying cash.

Really found out who my friends were at the time... was able to pull it off and refi my existing home to pay everyone back...

That is awful. Having been in the business, Wells is one big bank I with whom I will not work. Not a fan of BofA either. This particular thing is with a small CU that did the land deal a year ago. We thought it would go more easily. We think the rep is just too green. Same guy did the land, but small banks often have under-experienced staff for non-standard transactions.

 

[EddieWalker]

I haven't done very much financing with the local banks in awhile, but when I was building spec homes and flipping houses, I had very good luck with Citizens State Bank and Austin Bank. Some of the other banks where really difficult to deal with, they would change their minds, constantly ask for something else weeks after everything was already done, and then do it again at the last minute.

 

[WM75Guy]

Sorry for what happened. I can feel for you. Had a similar situation when we built. First State Bank in Athens forgot to include the $100,000 stable in the details for our construction loan, was denied by underwriting as they said house would not appraise at what we were asking for. They re-submitted with the stable plans, underwriting denied it again, said we were trying to pull a fast one over them to get the money for just the house. Our stable cost us $60/square foot to build. Their appraiser said all outbuildings were worth $20/square foot regardless of use or cost of construction.

Went down the street to the Athens Bank, talked to Bob Spears who is the VP, and was approved and closed withing days with no problems. Still banking with them to this day. Rolled our construction loan over to a fixed rate mortgage after the house and stable was built with a phone call and coming in a few days later to sign the papers.

 

[Raul-02]

DutcheBank lost the documents they were supposed to file when they sold my mortgage. So they were a cloud on my title and the idiots wouldn't listen to me when I called 'em and tried to get 'em to straighten it out

I had to get the CEO's private office line. That took some doing. That got their attention~!! The CEO's secretary answered it. She couldn't believe the trouble I was having. She worked it out by end of next day.

 

[Torvy]

DutcheBank lost the documents they were supposed to file when they sold my mortgage. So they were a cloud on my title and the idiots wouldn't listen to me when I called 'em and tried to get 'em to straighten it out

I had to get the CEO's private office line. That took some doing. That got their attention~!! The CEO's secretary answered it. She couldn't believe the trouble I was having. She worked it out by end of next day.

Wow. That is unusual. Deutschebank is a banker's bank. They lend a lot of money to the names most Americans know better. They have a great reputation.

 

[Larry Caldwell]

That is awful. Having been in the business, Wells is one big bank I with whom I will not work. Not a fan of BofA either. This particular thing is with a small CU that did the land deal a year ago. We thought it would go more easily. We think the rep is just too green. Same guy did the land, but small banks often have under-experienced staff for non-standard transactions.

We refinanced years ago and went to Wells Fargo. They wanted us to jump through all sorts of hoops, despite having 50% equity and both of us long term employed. We went to a mortgage broker instead. One look at our financial statement and we got the mortgage, in less than 24 hours, with no inspections. Six months later, Wells Fargo bought the loan, so we made payments to them. Within a year they offered to drop another % off the interest rate to prevent churn. We paid off the note and haven't done business with them since.

 

[ultrarunner]

Yep I had a Wells Fargo Checking Account and wanted to cash a check at another branch and was told I had to pay a fee since it was not the branch where I opened the account…

I said let’s see if I understand and the teller then asked if I still
wanted to proceed…

Said I changed my mind and would like to close my account and did.

The only thing I miss is the Stage Coach graphic on the checks…

 

[Torvy]

I forgot in my frustration, there was some good news, too. The rural water guys installed our meter. The power company has to wait for the builder to put up their temp pole...and that has to wait for the bank.

 

[EddieWalker]

Can you buy and install your own temp power pole? McCoys has them in stock, I saw a few in there last week.

Looking at their website, a 16ft pole and 200 amp meter box costs $700. That's a lot more then I ever paid for one. Seems like they where under $300 not too long ago.

McCoy's Building Supply

 

[EddieWalker]

Can you buy and install your own temp power pole? McCoys has them in stock, I saw a few in there last week.

Looking at their website, a 16ft pole and 200 amp meter box costs $700. That's a lot more then I ever paid for one. Seems like they where under $300 not too long ago.

McCoy's Building Supply

 

[Torvy]

Thanks. I could, but it is already part of our construction contract. I don't need it until they get the garage up.

 

[Torvy]

Well, wife spoke with a manager today. Got them more investment data and they added that she needs to actually draw on her retirement at the same level she had income while working. Remember, her job already paid her through December. So this hoop is going to cost her a huge penalty and be taxed at a higher rate since we will have full income this year plus this unnecessary withdrawal.

I checked into some alternative banks, but they wanted 4+ weeks just to get where we are now. One tried to blame it on the title company...I know better.

 

[Torvy]

Oh, and they wanted us to pay off our car that is at 0% to lower the DTI...idiots still don't seem to understand that we have more than enough investments and equity in our current home to pay for this 3-4 times over. Paying off the car would cost us in lost investment revenue. At least that one she talked them out of.

 

[ultrarunner]

Yep… often does not make sense but they also know many have little choice this far in if they want to fund…

Only onetime have I been satisfied with an institutional lender and by that time I was jaded but credit union did exactly what they said and when they said with zero surprises…

It’s amazing what can happen if you don’t need their money as described below…

A well off friend quite happy with his home inquired about a new upscale development that his wife was very interested in…

At the closing table the price was several thousand higher and the interest rate and fees higher…

He pointed this out and was told these were market adjustments and he countered the builder was late…

Anyway… he said not acceptable and was told he would be out of contract not signing.

He made two calls… one to his bank asking for a cashiers check and another to the lawyer…

Amazing how it all was sorted in 24 hours to his satisfaction…

 

[WM75Guy]

Well, wife spoke with a manager today. Got them more investment data and they added that she needs to actually draw on her retirement at the same level she had income while working. Remember, her job already paid her through December. So this hoop is going to cost her a huge penalty and be taxed at a higher rate since we will have full income this year plus this unnecessary withdrawal.

I checked into some alternative banks, but they wanted 4+ weeks just to get where we are now. One tried to blame it on the title company...I know better.

Draw for 1 month to close. After you close quit drawing on the retirement if you don't need it. I doubt they will keep track.

 

[Torvy]

Draw for 1 month to close. After you close quit drawing on the retirement if you don't need it. I doubt they will keep track.

That is the plan. We still have to eat thousands of additional dollars of cost for that one early draw. It wouldn't be so bad if it were not for everything else also coming in over budget. The only saving grace is that despite the housing bubble on the way, the DFW will feel it less as we still have an influx of professionals from other states and our school zoning is highly preferred.