Mortgage recall?

lilbunny · #1 02-02-2008, 11:35 PM

What is the name of your state? texas

My husband and I recently bought a house through a mortgage broker in December. He has some credit issues so we were under a lease purchase agreement and a credit improvement program before we were able to buy the house out. Somehow we managed to buy it and he is the only one on the note. Well, our mortgage has been bought out and it was effective the day our first payment was supposed to be made. Well, I received an email from our mortage broker saying that he had quite a bit of debt on his credit report that the lender is saying that is unexplained and if we don't send a letter of explanation about that they will recall our mortgage. The only thing that I can think that could make that sort of sum up is student loans that he has. He had been in the process of rehabilitating these loans over the past year and they have just come out of default status and should be updated as so. Shouldn't the lender have been aware of his credit in the first place. They pull a copy of your credit report right when you do the loan. Why are they bringing this up now? Can they recall a loan over this?What is the name of your state?

Some Random Guy · #2 02-03-2008, 12:24 AM

The mortgage will be "recalled" as you put it if the new lender determines that the original loan was fraudulently obtained. This means that the student loans and their status were not properly listed during the mortgage application process.

If you want to keep the house, provide the documentation requested.

Quote:

Shouldn't the lender have been aware of his credit in the first place. They pull a copy of your credit report right when you do the loan.

Yes, the first lender many have been aware of this when you got the loan. But now the second lender just ran his credit and sees lots of things that were not on the application. They are trying to figure out if they are being taken for a ride.

Grandma's house · #3 02-03-2008, 06:29 AM

If this is being re-called due to fraud it would have been done at the hands of the broker...you may need to get a lawyer and go after this broker. You should contact the LENDER right away. Don't panic but go through them and not the broker. Be very careful what you sign and write in any thing to this broker assisting him to cover his a^^ DEMAND a complete copy pkg. of what was sent to the lender from the broker., I underwrite a lot of deals... IT IS NOT CREDIT REPORT ISSUES I PROMISE...THIS WAS SEEN UPFRONT BY ANY LENDER UNLESS #1 OCCURED.

Sounds to me like one of 2 things have occured.

1.) the broker/lender closed the deal prior to a "clear to close" status and he can't get it bought. This is pure sloppiness on his part. Some states it is illegal to do this (called a wet funds state, if the funds arent' AT title at closing it does not close) If so, a letter of explanation is not going to save the deal but this brokers way to say: you have no mtg. thus no legal transfer occured STILL.

2.) or...the broker committed fraud and DID get it bought and they ARE calling the loan.

In my gut...I believe #1 is the answer because #2 would not come into play unless you defaulted already (becoming more than 30 days late) thus they fine tooth combed the deal and found the fraud.

Have you actually received payment statements from a lender? If so it's been bought and #2 has occured. CONTACT THAT LENDER DIRECT...FURTHER MAKE THE PAYMENTS ON TIME. HAVE YOU DEFAULTED ALREADY?

lilbunny · #4 02-03-2008, 07:48 AM

We haven't made our first payment yet. It was due on the 1st, but we have 15 days grace to pay on it so I've decided to make it on the 8th to put back some extra money before we have to start paying on it. Although, I can't seeing this being an issue. We shouldn't be in any trouble since that is the terms of the loan and we are nowhere near being 30 days behind. I received this letter on the day that the first loan payment was due, anyways. We asked the broker to specify what things on the credit report were causing the problem. She sent us a letter back saying what things on it that were problematic and that we needed to write a letter saying why we were behind on these things. I'm currently in the process of writing a letter letting her know that 1 of the main things was brought current(this one is the bulk of our debt), one was settled, one isn't, and the other is being paid on. I'm just having a hard time understanding how they could've closed this loan out w/o having known these things. It just seems like somewhere the ball was dropped. It just seems so wrong that you disclose this information(it's not like I could've hidden it...everyone can see it in his credit report)and now it is a problem after the fact.

lilbunny · #5 02-03-2008, 07:53 AM

I wanted to also add that yes, the mortgage has been bought. We have received a statement from them. The broker is saying that it is part of a FHA agreement where they can ask for any documentation at any time. Although, it is still puzzling that this wasn't done before the deal was done.

Grandma's house · #6 02-03-2008, 08:09 AM

You are in what is called a "first payment default" even one day late this was a HUGE no no. You are already riding on grace periods.

GET THE PAYMENT THERE ASAP...YOU COULD PROBABLY DO A PHONE PAYMENT TODAY.

Perfect loans can be called when a first payment default occurs. PERIOD.

FHA is not going to mess around. Something IS fishy though...as you said. It isn't that late.

Please share when you get this figured out.
FHA has an on line approval system (no human eye) if it ACCEPTED it's ACCEPTED. If it got a "refer" status then it got a manual underwrite but STILL it was approved by an FHA approved underwriter such as myself.

I do NOT understand this. Let me know... I tagged this thread for e-mail notification. I never do this. This concerns me.

Ask your broker if she got an ACCEPT status when she ran this thru D.U. (IF SO...then this isn't a credit issue AT ALL)

lilbunny · #7 02-03-2008, 06:43 PM

We have talked to the broker about what we needed to explain on. She sent us a hostile letter saying that we were being uncooperative about sending in the information, which was total nonsense. After speaking to a family member who also does lending, I am faxing her the info and I am also Fedexing it to her to with a signature so there will be no dispute that I sent it. I am wondering if this could be a situation where her own audit department has flagged this loan and she didn't provide the appropriate information to them when it was done and to be frank she is trying to cover her butt. We told her we discussed all this w/her when the loan was done and she said that point was moot and that was when she sort of accused us of being uncooperative. I have never seen getting a loan becoming this sort of nightmare. I am keeping copy of the emails she has to us also. I think the investor or FHA would've gotten a hold of us rather than her if they thought the fault was lying at our door. I cannot see how any of this is our fault. She pulled our credit and prepared the loan application. Our credit report tells everything. There shouldn't be any surprises. BTW, she says won't be in the office all week. I feel like if this so important shouldn't she be there esp. since I am attempting to send her this info. I'm trying to cross all my t's and dot the i's so to speak if this gets ugly. I can't understand why we are dealing w/this when all this was disclosed up front.

This loan was also manually underwritten( a refer my husband says). At first when she started talking to us she said it was the investor wanting the info and then later it was FHA. Yes, I agree I need to go ahead and pay the loan ASAP esp. now that things are going crazy and I need to keep myself from looking bad. I just never realized that we were going to be stuck in this mess.

Proj · #8 02-06-2008, 01:43 AM

I'll take a stab at this.

The lender saw that you were late with your first payment. (first payment default) Now the lender is forcing the broker to buy back the loan. That is very expensive for a broker and sometimes a killer.

This loan officer is freaking out because her company could go belly-up and she will be blamed for originating a "bad" loan.

The lender forces the broker to buy back the loan because they think they are being taken advantage of. Because you have fallen into the grace period, they are getting nervous that they will EVER get a payment from you. They're basically saying "We don't want it. Take it back."

The easiest solution is the best in this case. Make your payment. This will settle the lender and take the heat off the broker. I'm not sure what they are doing with the credit explanation letter, but just humor them with that. The most important thing is to get current and make payments on time.

Grandma's house · #9 02-06-2008, 06:36 AM

O.P. quote: I'm trying to cross all my t's and dot the i's so to speak if this gets ugly. I can't understand why we are dealing w/this when all this was disclosed up front.

if this gets ugly? I assure you it is. The loan got a "refer with caution" your loan officer did something BAD. You are sending her things that SHE will decide if they get to the lender...If it exposes her or her broker do you REALLY think they are going to give it to the lender?
She tells you that you are being "un-cooperative"? Please...the deal is DONE and a whole other can of worms is occuring.

I would NOT be cooperating with this broker anymore but only dealing directly with the lender.

Did you make your payment? If not...I too think the loan needs to be re-called. If re-called then the broker DOES have to buy it back.
They can't reverse the funds. Your loan is intact (for now) You may find this broker becoming your lender. TALK TO THE LENDER AND COVER YOUR TAILS OVER THE BROKER.
Get an atty. or talk to the title cos. atty. that closed the loan. I will try to get info. for this today for you. I've heard of these things occuring but never saw the outcome.

Grandma's house · #10 02-06-2008, 06:51 AM

btw...I do PROMISE you this. Due to this loan getting a refer. and was manually underwritten. The fraud is NOT in the credit report nor in the letter of explanation but something FAR more serious. You can't hide debt. on a credit report...a l.o.e. is not a deal breaker. (well...on one occasion I actually had a letter written that the reason the lady did not make her payment for 4 mos. was because it was too cold outside to go to the mail box. That was a deal breaker and I denied her loan)
It could be in the appraisal, fraudulent pay stubs etc...etc...and your broker is NOT going to tell you what they did but ONLY the lender. In fact...the broker may even be claiming innocent and blaming you and you do not even know it...

The L.O. is off for the rest of the week? I'll bet she is. Call the lender. Get a copy pkg. that the broker sent to them. Find out what went wrong already. Trust me the lender will tilt to believing you over this broker. Not if you "copperate" with this broker though.

If in the body of the appraisal...you won't find it yourself.

Grandma's house · #11 02-12-2008, 06:58 AM

so what happened to this loan? Did you make the 1st payment at least?