mortgage co. foul up

[chiefer]

What is the name of your state (only U.S. law)? Va

My wife and I bought or are int he process of buying a home. We utilized a mortgage group who helped us complet a credit app., etc. they were able to get us an approval and a closing was scheduled. We attended the closing, signed the documents and were given the keys. Two days later we get a call telling us the seller did not get the money because the mortgage co. we did the credit app with screwed up in making sure the lenders criteria were met. As such, my loan is now "toxic" and it looks as though we won't get the house after all. Is there any legal recourse for us here?

[seniorjudge]

What is the total dollar amount of your loss?

[HomeGuru]

Originally Posted by chiefer

What is the name of your state (only U.S. law)? Va

My wife and I bought or are int he process of buying a home. We utilized a mortgage group who helped us complet a credit app., etc. they were able to get us an approval and a closing was scheduled. We attended the closing, signed the documents and were given the keys. Two days later we get a call telling us the seller did not get the money because the mortgage co. we did the credit app with screwed up in making sure the lenders criteria were met. As such, my loan is now "toxic" and it looks as though we won't get the house after all. Is there any legal recourse for us here?

**A: expain what a mortgage group is. Sounds like you went through a private rip off company.

[chiefer]

It was a private mortgage group. What happenned is that the attornery who drew up the title insurance was not the attorney who did the closing. Apparently this was a criteria of the lender. As such, the lendeer would not accept the closing documents. Basically, the mortgage group who submitted the credit app. made a mistake and either overlooked tis vital component or was just incompetent. Either way, I am now shuffling to fix this and quite frankly I am uneasy about being able to smoothe things over. there not sure if the lender (Freedom Mortgage) will re-approve the loan. they told me they could try to submit it to another lender but couldn't guarantee an approval. So what happenned is that I left the initial closing thinking everything was o.k. with keys in hand and now it may be impossible to get the house or even another loan. I would think that since they led me to believe that I bought the home, closed the loan, signed the documents, and Ihave even started moving things in, they should be liable for something if it turns out I can't get the home....right?

[seniorjudge]

Originally Posted by chiefer

It was a private mortgage group. What happenned is that the attornery who drew up the title insurance was not the attorney who did the closing. Apparently this was a criteria of the lender. As such, the lendeer would not accept the closing documents. Basically, the mortgage group who submitted the credit app. made a mistake and either overlooked tis vital component or was just incompetent. Either way, I am now shuffling to fix this and quite frankly I am uneasy about being able to smoothe things over. there not sure if the lender (Freedom Mortgage) will re-approve the loan. they told me they could try to submit it to another lender but couldn't guarantee an approval. So what happenned is that I left the initial closing thinking everything was o.k. with keys in hand and now it may be impossible to get the house or even another loan. I would think that since they led me to believe that I bought the home, closed the loan, signed the documents, and Ihave even started moving things in, they should be liable for something if it turns out I can't get the home....right?

Thank you.

Please answer this question:

Originally Posted by seniorjudge

What is the total dollar amount of your loss?

[chiefer]

Oh yeah, the home is valued at 137,500 and what kills me is that during closing I signed a document stating the laon is approved and agreed to pay the company back the loan amount. I gave the attorney 5,321 for downpayment and other costs. The question here is how in the world can you go to a closing, close on the deal, and then be told two days later you can't have the house unless a loan can be re-approved, the seller will be o.k. with waiting, and gosh... we just don't know if we can get you approved for another loan?

[chiefer]

oh yeah, I have spent around $300 in deposits to have the electricity, gas, cable turned on. I have also made improvements where I had some gas piping done so the gas company would turn on the gas. This was about $400

[seniorjudge]

I am not exactly clear on the dollar amount you have lost, but I'd sue everyone in small claims for that amount (if the amount does not go over the small claims jurisdiction).

I'd also report the lawyer to the state bar.

[chiefer]

Newsflash!

I just received news from the mortgage group that the attorney who did the closing created his own title insurance document (?). As it turns out the attorney who did the original title insurance was in Tennessee and the closing attorney is in Virginia. This apparently is the core of the problem as far as the lender is concerned. Anyway, the new title insurance has been accepted by the lender and my loan is still approved and they are sending another closing packet to the attorney. I am going to have to wait until Monday to do ANOTHER closing and apparently the sellers are o.k. with this. I demanded that the money be wired to the attorney before we sign the closing documents this time. Is that the right thing to do? Also, my gut is telling me that this is too easy, but what choice do I have if I want the house? If this deal falls through and I can't get another loan and this particular house because of the mistake of the mortgage group; what recourse do I have other than recouping my immediate losses?

[HomeGuru]

Originally Posted by chiefer

Newsflash!

I just received news from the mortgage group that the attorney who did the closing created his own title insurance document (?). As it turns out the attorney who did the original title insurance was in Tennessee and the closing attorney is in Virginia. This apparently is the core of the problem as far as the lender is concerned. Anyway, the new title insurance has been accepted by the lender and my loan is still approved and they are sending another closing packet to the attorney. I am going to have to wait until Monday to do ANOTHER closing and apparently the sellers are o.k. with this. I demanded that the money be wired to the attorney before we sign the closing documents this time. Is that the right thing to do? Also, my gut is telling me that this is too easy, but what choice do I have if I want the house? If this deal falls through and I can't get another loan and this particular house because of the mistake of the mortgage group; what recourse do I have other than recouping my immediate losses?

**A: you got royally scammed. I suggest you contact the state AG and consumer protection office.

[The_Saint]

Originally Posted by chiefer

oh yeah, I have spent around $300 in deposits to have the electricity, gas, cable turned on. I have also made improvements where I had some gas piping done so the gas company would turn on the gas. This was about $400

Why are you doing improvements to a property you do not own?

And you have not closed until its recorded at the county recorders office.

[HomeGuru]

Originally Posted by The_Saint

Why are you doing improvements to a property you do not own?


**A: maybe the OP's attorney approved and allowed it.


#######
And you have not closed until its recorded at the county recorders office.

**A: closing and recordation are separate actions. There in fact could be closing without recording.

[VeronicaLodge]

isnt the money usually in the hands of the closing agent at the time of closing or in an escrow account? i dont know what seller is going to walk away from a closing without having been paid!???