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Are we getting screwed?

Hi boys and girls. Thanks for reading my question. We are well qualified, 780 credit score first time buyers, and putting 20% down on a $70k house. We are using a broker that is stalling. Closing date comes and goes, and we can only get a vague text from her that she is "trying." Suddenly she will right an email claiming the underwriter needs some new document from the IRS. On the phone with the IRS today, who are always friendly and helpful (really) said that our brokers latest documentation request was, and I quote, "idiotic." We found out the broker was dodging our calls when my wife finally tried calling her from someone else's phone. Surprise! Answer on the first ring. Our seller is ready to walk. We have earnest money, appraisals, inspections, everything ready to go. Three times now the broker has been silent for days, then suddenly has a new urgent request for some obscure documentation. Twice she has had "meetings" where she was supposedly shopping our loan to different banks. Nothing came of that. Now, three weeks after the original closing date, we have a vague, maybe by Friday non commitment. I've heard something about low-fee mortgages, because we are actually borrowing very little with a low interest rate. What I heard is that banks don't like to do this sort of thing. Does any of this sound normal? And what kind of recourse do we have? I would have much preferred she rejected us a month ago rather than give us the runaround like this. As it is we are just going directly to a bank because we can't get any answers. And her vague non commitments have never been met. My wife also spoke to her manager, who was a bit of a prick. I've found their corporate office in another state. Should I contact them directly? Is there a regulatory body to complain to? Thanks!
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December 31 2013 - Atlanta
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April 06
That's great news that you made it to closing. Congrats!
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January 06
Profile picture for user1847548
We are now homeowners. Basically the aftermath is that our broker is an incompetent human. I would repeatedly have to ask her things over and over again. And she forwarded emails from underwriters and such (that I don't think she was supposed to) where they were getting just as frustrated with her as we were. Every "complication" that we had was because of one person's reading comprehension and procrastination. Conclusion is we are happy that we now own a house, but we are going to write a strongly worded letter to the regulatory body. Our broker's manager is not much better than she was and he is just going to sweep it under the rug. In fact, he even hinted that it was against, quote, "complicated federal laws," to talk to anyone else in the company about the service we were getting. Thanks for your comments.
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January 06
Profile picture for zozopetal
mack the reason is the commission that is why she is stalling.   On $50,000, the agent makes $500 and gets half $250.   On a house in Madison Park in Seattle the $1,000,000 price tag fetches a $10,000 commission.   This Broker must really be desparate for cash to put the cabash on a $50,000   deal
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January 02
Profile picture for zozopetal
I think what is happening is she is waiting for interest rates to back down so she can make more commission in points.  

Call her bluff ....tell her you know what is going on with locking rates and waiting for rates to go lower to make more YSP!!!!

Tell her you will report her to the association if she doesn;t have loan doc's in 3 days.
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January 02
Profile picture for wetdawgs
I'm glad to hear that you see progress and hope that means you are close to closing.

Yes, gift money needs documentation.   Did you tell them earlier it was a gift?    While one can attack them for not providing this instruction earlier, it may be more effective to simply provide the documentation. 

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January 02
Profile picture for user1847548
Update: seems like everyone at the company is now working on our case. My wife couldn't get an answer from our broker, so she spoke to someone else in the company. Now we are talking to three different people. We were asked by our broker's branch manager not to speak with anyone else in the company about our loan because of "federal and state guidelines." It sounds like he is saying "please don't tell my boss we didn't take you seriously until now." Today they came up with some more paperwork that is needed. My wife's parents gave us some cash and now they need a host of documentation for a gift. My response is, "fine, but you didn't know that would have been needed like, a month ago at our original closing date?" My super organized, type A, but very friendly, respectful, and on point wife is on the verge of tears with these people. I'm a laid back dude, but if you want to get me upset, just pick on my wife.
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January 02

If you are in the $50k range for your loan amount, then these loans can be a bit screwy as they are easy to be associated with a high cost loan. This happens because many of the standard fee's you get on any loan are more dramatic to your loan because they become a greater percentage of your total loan amount whereas with a $100K loan amount it would be no bid deal. This could be what is causing the resistance, but for the broker not to be staight with you just demonstrates their lack of integrity. I would get your agent involved as she/he recommended the mortgage "pro". Sorry you got such a crappy rep. This should not be an issue as you sound like a solid borrower/buyer. All the best!

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January 01
@SoCal_Engr

I know the spelling is incorrect. I tried putting the apostrophe in there and it would not work. This was when I first joined Zillow. I have had a few people point that out before and I told them the same thing. Maybe I will try it again to see if Zillow fixed that issue.
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December 31 2013
If you really want to get this done, then you will need to select another lender quickly. And... a lender that will ease the minds of the seller and their agent so you can get this closed ASAP. It seems like your broker got herself into a pickle, can't get it done for whatever reason, and doesn't have the professionalism to let you know that she blew it. Report this later, just get it done with a new lender - fast.
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December 31 2013
The only people who get paid if your deal doesn't close are the appraiser and home inspector, so there's no incentive for them to stall and have the deal fall apart.

We don't know what's going on, and while we are the convivial sorts that want to join you in your harangue against the Evil People in Underwriting, we're also not going to be of any help to you by doing so.

All the best,
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December 31 2013
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@Anthony Carr...

Not a huge deal, but you might want to check your spelling. Unless, of course, it is some hyper-clever play-on-words that you're attempting.

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December 31 2013

Yes you can go above her manager if the manager was not helpful. Sounds like there is a lack of integrity with this company. The agent should have given you several references for lending options not just one. This brokerage obviously doesn't want return business because they have handled this transaction very poorly. So sorry to hear of this horrific experience. You can demand your appraisal you are being charged for it. You also can ask the seller for an extension and find another lender quickly. A local bank or a local lender with integrity. And concerning you interest rate she should have locked your interest rate in for you when you decided to move forward in this transaction. The interest rate shouldn't change unless she didn't lock it in or the loan lock has expired. I would highly recommend checking on this. Good luck with this transaction.

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December 31 2013
Waiting on the underwriter is not an answer. There has to be something more tangible or she is just stalling. She is probably embarrassed and knows she has probably lost a client and a Realtor. When a loan officer starts dodging calls it is not a good sign. If a loan officer has a loan that he/she feels confident will close, they would not dodge calls. They would want to make sure they keep you as a client and keep their Realtor contact. A major source of a loan officer's business comes from the referrals from happy clients and happy Realtors. I am thinking you should find another loan officer. I would suggest calling his manager but you got nowhere with that already. This doesn't look good.

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December 31 2013
Profile picture for wetdawgs
What is your agent, the one who recommended the loan officer, doing during this fiasco?     As the agent doesn't get paid until the process closes, your agent should be quite concerned.

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December 31 2013
Profile picture for user1847548
Thanks for all the replies. Answers: Our agent recommended her. The best we've been able to nail down so far as to why is: she's waiting on the underwriter. There is still absolutely no commitment. And we have been waiting for weeks to get a copy of the appraisal, which I've just learned is supposed to be delivered in 3 days. The broker is also not giving us the name of the bank where the supposed lazy underwriter is. I've read a lot of horror stories about negligent brokers that show up on closing day with higher interest rates because they let something expire. Should I ask her if she's been filing extensions to keep our interest rate locked?
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December 31 2013
Profile picture for wetdawgs
How did you chose this lender?
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December 31 2013
Something doesn't sound right to me. The loan officer knew the loan amount before taking you on as a client so that should not be an issue. There are high cost issues to worry about on small loans but again that should have been accounted for in the beginning. 

What exactly is she telling you the problem is with getting your loan fully approved? So far I do not see any real answers. Some lenders and banks can be a real terror to work with. I would advise nailing down a real answer from your loan officer but at this point since she is not responding in a timely matter tells me she doesn't know what is going on herself or she is feeling that the loan may not be approved after all.

Sorry that you have to go through this because our business can be simple if done properly. If it does not work out you can contact me through my profile page and I will gladly help you. I hope you do not have to because that would mean you got your loan finally approved!

Good Luck!
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December 31 2013

Complaining to a regulatory body won't fix your problem, but a good broker will. Find another broker.

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December 31 2013
I'd say yes. Something is wrong. Legally and ethically I can not post how I really feel about this situation, but I wish you all the luck. Buying a home should be fun. All I can say, tomorrow comes eventually.
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December 31 2013
tough to  answer  the question if you are  getting screwed ......but definitely sounds like to are  receiving lousy bottom of the barrell customer service


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December 31 2013
 
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