Help! Mortgage Broker has jerked us around for 6 months

[azettie]

I live in North Carolina and my husband and I decided to buy a modular home, because we live in a double wide which is need of alot of repair. We owe $80,000 on our land(4.25 acres)and double wide. So instead of repairing the double wide we decided to buy a moudular which will cost 98,000 and when set up and finished, including the land would be aprrasied at $350,000.
Our credit is fair so we didn't think the banks would loan us the money so we contacted a mortgage broker.
In August '05 we met with the broker and he got us approved for the loan. He sent a comentment letter to the dealer to start building the modular. This letter said we were definitely approved and the money would be there for this purchase. We asked the broker if we could start the basement and foundation with our savings and he said sure we would be in our new house by Christmas.
Our house has been ready and he says he can't find anyone that will give us a loan.
We have spent evey penny we have on preparing the land and building a basement thinking we would be getting the loan at any time and we could put the money back in savings.
Now it is almost Febuary and no loan the modular home dealer is wanting to set it up the broker keeps giving us the run around. He keeps giving excuses.
What I want to know is he legally bound by the commentment letter to pay for the modular or is there any thing I can do.?

[seniorjudge]

Originally Posted by azettie

I live in North Carolina and my husband and I decided to buy a modular home, because we live in a double wide which is need of alot of repair. We owe $80,000 on our land(4.25 acres)and double wide. So instead of repairing the double wide we decided to buy a moudular which will cost 98,000 and when set up and finished, including the land would be aprrasied at $350,000.
Our credit is fair so we didn't think the banks would loan us the money so we contacted a mortgage broker.
In August '05 we met with the broker and he got us approved for the loan. He sent a comentment letter to the dealer to start building the modular. This letter said we were definitely approved and the money would be there for this purchase. We asked the broker if we could start the basement and foundation with our savings and he said sure we would be in our new house by Christmas.
Our house has been ready and he says he can't find anyone that will give us a loan.
We have spent evey penny we have on preparing the land and building a basement thinking we would be getting the loan at any time and we could put the money back in savings.
Now it is almost Febuary and no loan the modular home dealer is wanting to set it up the broker keeps giving us the run around. He keeps giving excuses.
What I want to know is he legally bound by the commentment letter to pay for the modular or is there any thing I can do.?

Find another lender.

[HomeGuru]

I concur**************...

[Blacky1]

Why go with a modular? People never cease to amaze me.... You would be better off with a broker than a bank if you had perfect credita as they use wholesale lenders. Meaning if you went to Bank of America and applied for a home loan your rate would be at least 1/2% higher and the fees would be much higher as well. Where as if the broker put your loan through the WHOLESALE division of that same bank, you would walk away much happier. This is due to pricing incentives for overall volume sent through wholesale divisions by brokers.

Anyway, to make a long story short. A lot of lenders have pulled out of the modular market alltogether. They do not exist if you are looking at 100% LTV or CLTV anymore. Their thinking behind this is why should they invest in a home, "wabblies" as I call them, which DEPRECIATE in value.