Loan consultant lied to me

What is the name of your state? Colorado

I was buying a condo and before we proceeded to get serious I met with the approved lender's loan consultant (from countrywide). I told her of my current financial situation; Self-employed for 6 months; some credit card debt; no cash; and she told me I could do 100% financing no problem. I signed the purchase agreement and as time went on she kept reassuring me that we would be approved. Closer to closing I transferred all my utilities(paying transfer fees); got insurance; and spent a lot of time working with the builder and lender. The loan consultant later told me that my mom would have to cosign...then that I could not be on the loan. Later she said that I could be on the loan but she would have to change some information to look different.

Today I received the loan package and there was some stuff I didn't understand. It looked like they were overcharging me. There was also a binding arbitration clause that I wasn't about to sign and made me nervous that the company had something to hide. When we went in to meet the consultant the applications we needed to sign had misinformation. They had changed my employment history to 2 years of self employment and had changed my mother's house to a rental property and made the condo her primary residence. Me and my mom didn't want to fabricate information but the loan consultant said "you need to do this to get the loan...everybody does it...there's no other way."

Now I see why they have the arbitration clause. When the IRS goes after people for lying about their residence they can't go back and sue countrywide for misinforming them and making them knowingly lie on their application.

Is there anything I can do about this? Anyone I should inform that this consultant is encouraging people to lie and actually intentionally incorrectly filing loan applications? Can I go to small claims for my utility transfer fees or my time spent wasted doing condo work? The builders were going to pay my lease break fee at my apartment...can I hold the lender responsible for that? What would happen to the consultant if someone found out about this? Any help? Thanks.

[HomeGuru]

Originally Posted by churchskiz

What is the name of your state? Colorado

I was buying a condo and before we proceeded to get serious I met with the approved lender's loan consultant (from countrywide). I told her of my current financial situation; Self-employed for 6 months; some credit card debt; no cash; and she told me I could do 100% financing no problem. I signed the purchase agreement and as time went on she kept reassuring me that we would be approved. Closer to closing I transferred all my utilities(paying transfer fees); got insurance; and spent a lot of time working with the builder and lender. The loan consultant later told me that my mom would have to cosign...then that I could not be on the loan. Later she said that I could be on the loan but she would have to change some information to look different.

Today I received the loan package and there was some stuff I didn't understand. It looked like they were overcharging me. There was also a binding arbitration clause that I wasn't about to sign and made me nervous that the company had something to hide. When we went in to meet the consultant the applications we needed to sign had misinformation. They had changed my employment history to 2 years of self employment and had changed my mother's house to a rental property and made the condo her primary residence. Me and my mom didn't want to fabricate information but the loan consultant said "you need to do this to get the loan...everybody does it...there's no other way."

Now I see why they have the arbitration clause. When the IRS goes after people for lying about their residence they can't go back and sue countrywide for misinforming them and making them knowingly lie on their application.

Is there anything I can do about this? Anyone I should inform that this consultant is encouraging people to lie and actually intentionally incorrectly filing loan applications? Can I go to small claims for my utility transfer fees or my time spent wasted doing condo work? The builders were going to pay my lease break fee at my apartment...can I hold the lender responsible for that? What would happen to the consultant if someone found out about this? Any help? Thanks.

**A: first find another lender.

I did find another lender. Our next door neighbor owns a mortgage company that's an approved lender at the same condo project. What he said is A)What she did is totally illegal and could get in serious trouble and B) Instead of her trying to falsify all these documents what she should have done is just told us that we couldn't qualify without money down; which is what he would have told us. So we figured out that without 20% down (about 30000) we won't be able to get it.

Anyone want to invest 30000 in a $20000 undervalued condo in Denver where the value will go up probably another 20000 at selling a year later with a 10% ROI? I realize the answer will be no but I AM serious about it

[HomeGuru]

Originally Posted by churchskiz

I did find another lender. Our next door neighbor owns a mortgage company that's an approved lender at the same condo project. What he said is A)What she did is totally illegal and could get in serious trouble and B) Instead of her trying to falsify all these documents what she should have done is just told us that we couldn't qualify without money down; which is what he would have told us. So we figured out that without 20% down (about 30000) we won't be able to get it.

**A: that information is correct.
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Anyone want to invest 30000 in a $20000 undervalued condo in Denver where the value will go up probably another 20000 at selling a year later with a 10% ROI? I realize the answer will be no but I AM serious about it

**A: this is not a real estate investment website.