Broker/realtor/problems

[djmd]

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

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

Went to realtor to see about purchasing house, met with mortgage broker, said no problem for loan 30 fha fixed rate 4.5% with 3.5%down. Week later found house, made offer, offer accepted. Week 2 submitted paperwork for loan. Week 3 and here is where is gets messy. Mortgage broker said cant get 4.5% but here is 5%. So ok giving benefit to rates changing etc thats fine. 2 days later mortgagebroker comes back an tells us we are approved even better at 4.875% same amount down etc. 1 day later we called realtor to see if we opened a line of credit at sears and he said "no problem, you are locked in at your rate, get the washer dryer". So this afternoon realtor called and said that there is a problem with the loan. We cannot get it financed and the (3) options they propose are
#1- buy a house and lie on the motgage paperwork that we do not already own a house.
#2 - buy a house and lie stating we have 6 month of renters payments
#3 - Buy the house and submit false documents to the lender stating the current house we own is for sale/under contract.

So That I Am very clear with this I wil not lie. In our offer we gave 3k, so what can I do to protect myself and financial obligations? What other things shoudl I expect from pulling out of my contract obligation?

Advise would be great! thanks

 

[Mass_Shyster]

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

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

Went to realtor to see about purchasing house, met with mortgage broker, said no problem for loan 30 fha fixed rate 4.5% with 3.5%down. Week later found house, made offer, offer accepted. Week 2 submitted paperwork for loan. Week 3 and here is where is gets messy. Mortgage broker said cant get 4.5% but here is 5%. So ok giving benefit to rates changing etc thats fine. 2 days later mortgagebroker comes back an tells us we are approved even better at 4.875% same amount down etc. 1 day later we called realtor to see if we opened a line of credit at sears and he said "no problem, you are locked in at your rate, get the washer dryer". So this afternoon realtor called and said that there is a problem with the loan. We cannot get it financed and the (3) options they propose are
#1- buy a house and lie on the motgage paperwork that we do not already own a house.
#2 - buy a house and lie stating we have 6 month of renters payments
#3 - Buy the house and submit false documents to the lender stating the current house we own is for sale/under contract.

So That I Am very clear with this I wil not lie. In our offer we gave 3k, so what can I do to protect myself and financial obligations? What other things shoudl I expect from pulling out of my contract obligation?

Advise would be great! thanks

Does your purchase contract include a mortgage contingency? If you cannot get financing without lying, then you cannot get financing.

 

[justalayman]

why aren't you speaking with the lender?

 

[djmd]

Under the financing application and commitment - it states that buyer has 3 days to provide the seller with written financial commitment. Seller, at sellers election and upon writtennotice to buyer, may declare this contract null and void. (2) buyer, upon written notice to seller, which shall include written eidence from a lender of buyers inability to obtain financing as provided in paragraph 9 of this contract, may declare this contract null and void. In either cse, the deposit shal be disbursed in accordanceiwth the deposit paragraph in this contract. If buyer has complied with all buyers obligations under contract, including those with respect to applying for financing and seeking to obtain financin, then relese of deposit agreemet shall provide that the deposit shall be returned to the buyer.

Is That what you meant?

 

[djmd]

why aren't you speaking with the lender?

The broker avoids my calls, only send short emails of we're working on it. The realtor has some balls and calls me back to give me the news. asked how who the bank was and he said he wasn't for sure but will get back to me. Should I ask for some type of disapproval notice to see whats really going on?

 

[justalayman]

You somehow applied for a mortgage and never spoke to the actual lender? How did you provide him with the proper releases so they could even do a credit check?

 

[djmd]

You somehow applied for a mortgage and never spoke to the actual lender? How did you provide him with the proper releases so they could even do a credit check?

This is my first go around with this stuff - so to clarify I met with broker who pulled my credit. He is the one who said 4.5, then 5 on the loan agreement, then came back and told me day later I got 4.875. Then all the mess started....I asked/emailed him who the bank was that approved and disapproved it and got no response. So now I have the realtor checking in it for me. Its one of those realtor,broker,title agency all in one places. I am sure it is not that hard to find out between the 3 of them. What do you think? sou

 

[justalayman]

well, first, after this is over; if you are really dealing with a Realtor (with a capital R), you need to report this guy to the state office of the National Association of Realtors for his suggestion of lying to obtain financing.

You should also report him to the state licensing agency as well.

What he is suggesting you do is blatantly illegal.


Then,

Under the financing application and commitment - it states that buyer has 3 days to provide the seller with written financial commitment.

was written financial commitment provided to the seller?

 

[djmd]

Then,

was written financial commitment provided to the seller?[/QUOTE]

Not that I am aware of, I am not sure if that would be an agreement I would sign, in that case certainly not. Only my obligation to purchase the property was upon contigent upon written commitment for a loan secured by the property as follows 30yr fixed, 4.875%.

Thanks for your help!

 

[swrdmbo]

You also want to report him to the local Board of Realtors.They have an ethics committee as well. He should be outed for the unethical person he is.

What he suggests is absolutely illegal, as was stated. The problem is, if you were to do this, and got caught, YOU would be the one on the hook, and so called Realtor would be unaccountable...unless he was stupid enough to put such directions in writing.

Ultimately it would be you left holding the bag.

I am not suggesting you would do such a thing, I am just saying this guy would be off the hook, and that is not right!

I know, I was a Real Estate Broker for years, and it is just such scumbag Realtors like this that give Realtors such a bad name ( and most often undeserved).

Don't let him get away with it.

I can only say I have never liked the Realtor, Mortgage Broker, and Title company combo. I don't know why the states allow them as it seems to be a conflict of interest, as usually the principles are often related,or in collusion together.

 

[djmd]

cool thanks guys for all the help - much appreciated

 

[VeronicaLodge]

do you have a house now that you are not going to sell?