Mortgage company may decline. Closing already scheduled for tomorrow.

What is the name of your state? Michigan

To make a VERY complicated, long, frustrating story short, my mother's financial advisor was "handling" her end of the mortgage application. Closing was supposed to be June 30, but we found out THAT DAY the underwriters to the mortgage broker our advisor used didn't have all the information or paperwork they needed from our end. That postponed the closing till Wednesday, July 2nd, of which at this point we STILL don't know if they are 100% going to approve the mortgage. The house she is currently living in is still up for sale (no offers on the table), and she is more than financially capable to handle two house payments, although my mother is on a modest fixed income with my deceased father's pension and investment money.

With that background, what is her next step should the mortgage company back out and decline because the current house she is living in has not been sold? (The mortgage company called just this afternoon requesting a fax showing that her current house is indeed listed with a real estate firm). The financial advisor told us she already faxed an affidavit (sp?) to the mortgage company stating that she could easily make the payments for at least 2+ years should that situation arrise.

What happens if the closing doesn't happen tomorrow? What is my mom's responsibility to that house now that the title company, the previous seller's, and both realtor's have done everything on their end to make this transaction happen? Legal action? Fines or fees?

Any help is appreciated.
Thanks.

[HomeGuru]

Originally posted by kalamazoo
What is the name of your state? Michigan

To make a VERY complicated, long, frustrating story short, my mother's financial advisor was "handling" her end of the mortgage application. Closing was supposed to be June 30, but we found out THAT DAY the underwriters to the mortgage broker our advisor used didn't have all the information or paperwork they needed from our end. That postponed the closing till Wednesday, July 2nd, of which at this point we STILL don't know if they are 100% going to approve the mortgage. The house she is currently living in is still up for sale (no offers on the table), and she is more than financially capable to handle two house payments, although my mother is on a modest fixed income with my deceased father's pension and investment money.

With that background, what is her next step should the mortgage company back out and decline because the current house she is living in has not been sold? (The mortgage company called just this afternoon requesting a fax showing that her current house is indeed listed with a real estate firm). The financial advisor told us she already faxed an affidavit (sp?) to the mortgage company stating that she could easily make the payments for at least 2+ years should that situation arrise.

What happens if the closing doesn't happen tomorrow? What is my mom's responsibility to that house now that the title company, the previous seller's, and both realtor's have done everything on their end to make this transaction happen? Legal action? Fines or fees?

Any help is appreciated.
Thanks.

**A: read the condition in the contract. If the deal was subject to financing, then that was one of the contingencies to the sale.

Thank you, and we'll inquire with the realtor for the actual terminology on the contract.

[HomeGuru]

Good luck.

Follow-up: My mom closed with the title company today, but still was not able to gain access to the house because the underwriter sent the approved file today via overnight delivery, but are sending the check tomorrow. Considering the delay in the original closing was due to THEIR mistake, we were completely blown away that they didn't do everything to make this situation right. Innovex (the mortgage broker handling the account) let my mom's file sit untouched for over two weeks because the person originally handling the transaction went on vacation and the person taking over her accounts never opened it. Ultimately, it was the inadaquate actions by my mom's financial planner (ie: not following up on the process with them) that let it get this bad, but if there was anything that could have gone wrong in this case, it did. We just chalk it up to yet another valuable lesson learned. Look out for yourself, because nobody has our best interests at hand more than us.

I'm thinking about writing the better business bureau, but have hesitations for two reasons: Will a complaint filed against them cause anymore unneeded stress or complications to her mortgage, even though it's been established? And will it really do anything other than let me vent my anger and frustration? Guess I'll sleep on it a while and figure it out later.

[HomeGuru]

Originally posted by kalamazoo
Follow-up: My mom closed with the title company today, but still was not able to gain access to the house because the underwriter sent the approved file today via overnight delivery, but are sending the check tomorrow. Considering the delay in the original closing was due to THEIR mistake, we were completely blown away that they didn't do everything to make this situation right. Innovex (the mortgage broker handling the account) let my mom's file sit untouched for over two weeks because the person originally handling the transaction went on vacation and the person taking over her accounts never opened it. Ultimately, it was the inadaquate actions by my mom's financial planner (ie: not following up on the process with them) that let it get this bad, but if there was anything that could have gone wrong in this case, it did. We just chalk it up to yet another valuable lesson learned. Look out for yourself, because nobody has our best interests at hand more than us.

I'm thinking about writing the better business bureau, but have hesitations for two reasons: Will a complaint filed against them cause anymore unneeded stress or complications to her mortgage, even though it's been established? And will it really do anything other than let me vent my anger and frustration? Guess I'll sleep on it a while and figure it out later.

**A: ok.