Profile picture for user8090321

TITLE company asking for previous FHA case to be cancelled..

Husband and I were supposed to close on a new home today, but the title company wouldn't complete their part because they are saying the need proof of FHA case cancellation from a loan we tried to get over the summer time. It was almost six months ago we lost a home due to it being taken off the market when our lender discovered the title was bad. We signed termination of sale with the seller and even received a letter from our bank stating the loan was terminated for that reason. Is this something a title company would typically ask for, or does this sound like a condition from our new lender? I'm leery who to believe considering our loan officer told all parties we had approval last week, then two days ago he was saying the bank wanted more conditions met. I don't know what to believe anymore.. 
  • November 29 2012 - Southfield
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Answers (3)

Profile picture for user8090321
Our original closing date was October 30... and when our loan officer was lying to us about the appraisal and approval being ready we got a 16 day extension from the seller without saying anything. Well when we passed through that period, and dealt with more crap from this guy we had another two closing dates pass. Finally we "got approval" "clear to close" the day before thanksgiving, after submitting proof of my son's birth, because we had a $100 check deposited in our account that said "Baby Kasem" in the memo. "Because of the holiday" we couldn't close on the 23rd since the title wouldn't be done, so they seller suggested tuesday the 27th. Then our loan officer says to us yesterday, "title company needs proof you're not purchasing the other house." Well we gave you the signed Termination of Sale from the sellers agent and the termination of the loan from our previous lender, so why didn't anyone tell us we needed an actual cancellation of a FHA case number before?

We've had nothing but problems with this guy, and I've literally become sick about all the lies and procrastinating we've seen from him. So now I am wondering if we even have approval at all? Chase bank sent us the screen shot of the FHA Connection query page and it didn't say anything about the case being cancelled, just Last Action: 6/8/12 apraisal ordered.

So now I am yelling at Chase bank to close the old FHA case number so the "Title company" can finish the loan so we can close, but I'm really starting to think we don't even have approval, he's still lying, and when I get him the cancellation he's going to pull another "oh well the bank needs this now."

I wanted to walk away from him a long time ago, but kept hoping that when he said "approval tomorrow" or "just this last thing" he was actually going to be truthful, just one time! I'm not sure what our rights are as home buyers, but I even called his boss and he wouldn't call me back. I left messages requesting help. And when I call Flagstar, they tell me since he's working as a "broker" he's considered wholesale, they may not even be writing the loan in the end, and if we want answers we have to talk to his boss. The one who won't call me back.

Sorry to spill my guts here, I'm just sick about this. I never want to buy a home again. This has been such a sickening experience.
  • November 29 2012
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Profile picture for Margie Smigel

I have seen this before. However, it was a situation where there was an FHA deal that got canceled on a home. When the next buyers tried to get an FHA loan, the database showed that there was already an FHA loan case number assigned to that property.  The first case number had to be deleted from the FHA files before the new loan could be approved.  In your case, there is an FHA case number that was assigned to you and your husband as buyers on the deal that got canceled 6 months ago.  Since FHA requires owner occupancy, you would not be able to close on two FHA loans during the same period of time. So when your recent loan came up for approval, FHA refused it because they still thought you were going to complete the original loan.  It should not be too difficult to get your original FHA loan case number deleted by FHA, but it is certainly curious that it didn't show up until the day of closing. If you had stayed with the original lender, he would have probably taken care of it much earlier in your process.  It is important when initiating a new relationship with a lender or a broker to give them as much information as possible about your recent real estate transaction history (even if the transactions did not close) so that they can be sure to rectify any of those issues long before showing up at the closing table.

  • November 29 2012
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The FHA case number would be a lender condition on the property you are attempting to purchase not a case number from another home that you had attempted ot purchase in the past.
  • November 29 2012
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