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Profile picture for deannasjuju

Paid for Appraisal/Inspection.. Loan Declined.. so what now?

  • November 05 2012 - Milwaukee
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Answers (11)

Best Answer

Profile picture for Go Huskers
"Our problems were that we had a short sale 12/2009 and 2 late payments on a Wheda loan."
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And here lies the problem. There is nothing "subjective" about you situation. Any loan officer with an IQ north of body temperature would have told you that your options are as follows:

1) FHA 3 years if missed payments: No exceptions! (12/2012)
2) Conventional Conforming 2 years with 20% down / 2 years with 10% if extenuating circumstances.

If you don't meet the criteria for #2, this should have, could have, MUST HAVE been known prior to you even completing an application! It's a shame you cannot sue for their stupidity!
  • November 05 2012
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Profile picture for acmontenegro79
I lost the appraisal the inspection and the earnest money totaling 2300 because the owner didn't want to move up closing date cause bank was taking too long . 42 days and still no word of when I close
  • June 12
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There are a number of small local banks that can finish loans and close when deals the major banks have problems with.  At times I spend hours/days tracking down and matching loans for buyers.   Most of the time it works.   There have been major changes to the lending process over this past year.  I don't know how lenders keep up.  

Best thing to do is get as many details as you can and if you are determined, work with a good credit repair specialist.  You may not think you need one, but the way things are changing these days, it may be a wise investment.  

If you have 20% down I am sure there is a local bank willing to work with you and close the loan.  
  • November 27 2012
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Profile picture for deannasjuju

To Go Huskers (and anyone else);

That's my predicament now.. I have written letters & filed complaints with the OCC/Consumer Protection Bureau & Better Business Bureau and all the letters go to the same VP at US Bank.. Kathy Gentry.. Who writes garbage every time basically stating that they apologize and say the fees are disclosed in some booklet that the fees are non-refundable. ***Come to think of it*** I don't even think I was given a disclosure booklet OR a Fee Deposit Acknowledgement notice!  As indicated on my "Applicant Acknowledgement Agreement" she never checked that box that I received that disclosure booklet…

Anyhow the letters never explain why Tabatha DeLeon (The Loan Officer, at US Bank Milwaukee) did this.

How can I address the fact that she proceeded with the loan.. I have a copy of credit report ran just a few weeks before we had the accepted offer and days later we signed the Applicant Acknowledgement Agreement..

To Cindy Quinton;
I have a copy of the denial letter from US Bank/Underwriting. I am currently working with a broker (who is a close friend). Looking back, I realize that the Loan Officer never responded to the broker's emails. He did attempt to communicate with her but phone calls and emails she did not respond to. She only communicated directly to him days before the scheduled closing stating verbally that everything is a "go" the seller can precede with taking care of what she needed to. (She was re-locating.) Then 2 days later Tabatha called me with the sickening bad news that we were denied.

 

Our close date was supposed to be 7/27/12 (Our anniversary!). We did not celebrate that day.

I still lose sleep over this. Because we are out $764 and I don't even gamble..

 

I want to tell EVERYONE I know about this awful thing that has happened to me.

 

It's too bad that they didn't try to appease me. Kathy Gentry NEVER responded to my voicemail request to even meet with her and discuss this.

 

So yeah.. what now…

  • November 06 2012
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Profile picture for BoulderBobGordon
Now, more than ever, it is critical to have a Realtor and Loan Officer working on your behalf. Do you have a Buyer's Agent representing your best interests? I can recommend mortgage brokers in the Boulder/Denver market to help you get approved or tell you honestly if you are not going to be able to receive financing.
  • November 05 2012
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You should be able to get very specific answers as to why you were not approved and what has to happen before you can be approved. Also, you might consider speaking to some different lenders....it is possible that a different one CAN approve you. 

I have worked with a lender a couple of times who does something that can be very unpopular, he asks people to wait to make an offer until they submit everything to underwriting for a review. Once there was simply no way to approve them, but he saved them from wasting money on appraisals and inspections. The other time, they were able to move forward with their purchase with no worries (and sell their house by the way, which could be catastrophic to sell and THEN find you couldn't borrow). 
  • November 05 2012
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Profile picture for wetdawgs
I'm sorry to hear this happened.  In your description, you use "pre-qualified" as well as "pre-approved".  These are not synonyms so I'm a bit confused.  These two are quite different, with pre-approval requiring a higher level of investigation than pre-qualification.  However, even pre-approval is not a guarantee you will get a loan because once you apply because they snoop with more detail into your finances, and an underwriter looks with a magnifying glass at all aspects.  

At this stage what to do?   Get clear information on exactly what caused you to be denied.   Was it the couple of late payments?   Was it the 2009 short sale?  Medical debt?   or ????   Hopefully the underwriter has made it clear to the loan officer. 

Appraisals and inspections are part of the costs of the purchase process.   That is spent, and you won't get it back.   Sorry.

  • November 05 2012
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Profile picture for deannasjuju

We were pre-qualified! We were given an interest rate, loan paperwork, and had to pay off some medical debt. Our problems were that we had a short sale 12/2009 and 2 late payments on a Wheda loan. But she didn't say that these were a problem at all. The Wheda loan was paid off, with that being said a recent paid medical debt was our only obstacle we had to tackle and we paid it off during this last year up to pre-approval. Our credit would only get better with time but we were denied! We both work full time... No one has real answers for me. Can I do anything to get my money back for appraisal and inspection? (Letters didn't work) Does this happen to other people? Why would a loan officer pre-qualify... give us green lights then the loan get denied at underwriting anyway?

The appraisal came in above asking. Our debt ratio was no problem.
Years ago I was told that medical collections were not factored into pre-approval for a home an thats has all sooo changed. SO This is why we paid off all the medical debt this year.

Also I emailed the loan officer at US Bank- a letter explaining the Late Wheda payment.. an Im not even sure if she even sent the emails to them.

  • November 05 2012
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Profile picture for ShaylaTwit
Was the loan declined due to a low appraisal?  Or was it due to changes with your debt-to-income or credit?

If from an appraisal, you can get a 2nd opinion.  At an additional cost to you, however.  You can try to negotiate for the seller to chip in or pay as well if they want to keep the deal together.  

There is always risk when purchasing, that after you pay for appraisal and/or inspections, that things can go wrong.  

Hope that helps.  Good luck.  Shayla Twit, Sarasota FL Realtor
  • November 05 2012
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Recommend checking with different lenders.  Just because one lender declined your loan, does not mean all lenders cannot help you.  Ask around for lender recommendations from friends/family/coworkers - talk with a few different lenders, explain what happened with all the details and see who can help you.  When you find out the solution, then get the seller to agree to you switching lenders and extend your closing date to accomodate when the new lender thinks they can close your sale.  Often if you do not change the type of loan, the new lender can re-use the same appraisal too. 
  • November 05 2012
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Now you move on. I would suggest getting pre-qualified before placing any offers so you have a better idea that you will be able to get the loan. You could move the loan to another lender and see if they will accept it, but there will be another appraisal needed. The inspection is an option and you already have it.

Tim
  • November 05 2012
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