Mortgagee wants to call back its loan

stellapena · #1 07-21-2005, 02:38 PM

What is the name of your state? Florida

I recently purchased a new home, in a new county, and moved about 200 miles away from my original home (also quit a very good job, and got another one). I applied for housing downpayment assistance with the state, and based on income, family size and the fact that I have not owned interest in real property for 3 years, was approved.
Today, more than 30 days after closing, and nearly 30 days after the mortgage and deed were recorded, I got a phone call (the umpteenth from the mortgage broker, who keeps “losing” documents) telling me that the lender (they’re a correspondent lender) has pulled the loan from them for “fraud” because I did own property. They’ve offered me a new loan, or foreclosure as alternatives.
I submitted everything that the underwriter wanted, and nothing was misleading or false. But when I spoke the broker, he said we’d “keep it between us”. The problem I have is that the state financing was $10,000 (silent mortgage), and I don’t believe the house is capable of appraising it’s first mortgage plus this extra cost. Additionally, my debt ratio is a lot higher now. I didn’t expect this to happen, and I bought furniture and a car, etc. (necessary things when moving) so now I may not even qualify.

Can anyone tell me if I have any legal rights in this issue, or do I have to go back to the correspondent lender who wants me to start all over again with a new loan? Please help!

Some Random Guy · #2 07-21-2005, 02:45 PM

I'm confused here.

You owned property - but then claimed you hadn't owned property in 3 years.
You consipred with your mortgage broker that you would “keep it between us”. - and nothing was misleading or false in your application.

You purchased a home and then mortgaged it for more than it was worth. And then because you were in such good financial health, you went and bought a new car and furniture.

Please explain.

stellapena · #3 07-21-2005, 02:53 PM

Florida

Sorry if I wasn’t clear. I haven’t owned property in the last three years. I wouldn’t qualify for the state assistance otherwise. What I’m saying is that after all was said and done, after I closed, after I went ahead and got into more debt and thereby screwed my debt ratio, the broker calls me to tell me that I’ve committed fraud (I haven’t), that the lender is calling back the loan, and that I’ll have to get a new loan, sell the house, or face foreclosure (fraud because I supposedly owned real property and they “found out.” Totally bogus.). And the last thing the broker said to me was “we’ll keep it between us,” I assumed that he wouldn’t “report” me or my “fraud”, whatever. Is that clearer?

PghREA · #4 07-21-2005, 09:28 PM

Quote:

Originally Posted by stellapena

Florida

Sorry if I wasn’t clear. I haven’t owned property in the last three years. I wouldn’t qualify for the state assistance otherwise. What I’m saying is that after all was said and done, after I closed, after I went ahead and got into more debt and thereby screwed my debt ratio, the broker calls me to tell me that I’ve committed fraud (I haven’t), that the lender is calling back the loan, and that I’ll have to get a new loan, sell the house, or face foreclosure (fraud because I supposedly owned real property and they “found out.” Totally bogus.). And the last thing the broker said to me was “we’ll keep it between us,” I assumed that he wouldn’t “report” me or my “fraud”, whatever. Is that clearer?

If you didn't really commit fraud, you should be able to prove your innocence. Obviously, you are aware that something was not right because of the statement you made - "And the last thing the broker said to me was “we’ll keep it between us,” I assumed that he wouldn’t “report” me or my “fraud”, whatever."

stellapena · #5 07-22-2005, 06:56 AM

No, I didn't. It was the broker's statement: "we'll keep it between us" which I construed as his way of saying that he wouldn't say anything to get me in trouble. This brokerage firm is terrible; I had to sign the documents (mortgage, assignment, etc.) three times because they kept "losing" them. What I want to know is what rights do I have. I'm pretty sure I'll need an attorney. Any comments?

PghREA · #6 07-22-2005, 07:32 AM

Quote:

Originally Posted by stellapena

No, I didn't. It was the broker's statement: "we'll keep it between us" which I construed as his way of saying that he wouldn't say anything to get me in trouble. This brokerage firm is terrible; I had to sign the documents (mortgage, assignment, etc.) three times because they kept "losing" them. What I want to know is what rights do I have. I'm pretty sure I'll need an attorney. Any comments?

But, if you are totally innocent, how could you get in trouble? I think there is a lot you are not telling us.

stellapena · #7 07-22-2005, 07:41 AM

Okay, I’ll try to be clearer. The program I applied for and was granted was a downpayment assistance program run by the state. One of the requirements is no interest in real property for three years prior to applying. I did not have any. The broker called me on 7/21/05 (we closed the deal on 6/3/05) and told me that the lender had detected “mortgage fraud” and discovered that I had in fact interest in real property in the past three years, thereby disqualifying me for the downpayment assistance program. Mind you, I have not, and the broker did use the word “allege” regarding this fact in his explanation of the lender’s decision to call back the loan. I only mention the broker’s use of “keep it just between us” because I think it’s rather odd that he chose those particular words when he said I needed to make other arrangements. I submitted all the documents they requested, and certainly did not commit mortgage fraud. So I’m clueless as to what to do, that’s why I’m writing.

Some Random Guy · #8 07-22-2005, 08:18 AM

The only way you are going to get this resolved is to find out what the lender is talking about. They think that you owned other property. Probably found something owned by someone with the same name. Until you find out what that is, you cannot refute their findings.

Get in touch with them right away - before they call in the loan. If your broker isn't giving this matter enough attention you may need to contact them yourself. You have the loan now and therefore have a direct relationship with the lender. Get things handled before things gtet out of control.

stellapena · #9 07-22-2005, 08:24 AM

Thanks. Plan to call them today. Thanks for the advice.