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The bank said they made a mistake

Discussion in 'Mortgages & Financing' started by winebodysoul, Jul 7, 2016.

  1. winebodysoul

    winebodysoul Law Topic Starter New Member

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    Jurisdiction:
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    This is the short version.. I bought a condo last week. The loan officer I was dealing with said I was approved for a 95% loan, later said she made a mistake and it would have to be a 90% loan. I made it very clear I could not put any more down than that. If it was going to be a problem that I would prefer to rent a while until I could put more down. She assured me that I would not have to put anymore than the 10% down. My closing is set for 6/20/16 I have to be out of my rented home on 6/19/16 I explain that I am going to have to rent a truck, board my cats, and stay with a friend that night. If she thought for one minute that the closing would not happen on the 20th, then I would just find something else to rent. She told me that it was safe for me to move my belongings into a truck and board the cats. It was going to happen on the 20th, unless something on the sellers side came up. We were good. On the 20th I am still waiting to here from her to come sign the final doc's. I have wired the closing cost to the attorney, as per her request (she gave me the exact amount). I have the good faith estimate, which has the principal, interest, and mortgage insurance payments clearly written. It is the day the closing was supposed to take place. After a number of calls, the loan officer finally calls me back, and explains that she is unable to get me mortgage insurance. The only way the closing is going to happen is if I wire another 10% to the office. She said the mortgage ins. company figured my income differently than the bank did. Because I am a small business owner, I did not show enough for insurance. However the closing cost show exactly what I will be paying in mortgage insurance. I am now homeless, and it's costing me a lot of money to stay that way. I frantically search for a rental, or someone to borrow the funds from. Like I told her from the very beginning, I did NOT have the funds for a 80% loan. I was able to borrow the money from a family member, and now have 2 loan payments. I feel like I was forced into an 80% loan after being told over the phone, in person, and in writing that my loan was complete for a 90% loan.
     
  2. adjusterjack

    adjusterjack Super Moderator

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    Is this an employee of the bank or a loan broker who is not an employee of the bank?
     
  3. winebodysoul

    winebodysoul Law Topic Starter New Member

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    This is an employee of the bank
     
  4. adjusterjack

    adjusterjack Super Moderator

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    Well, there seems to be a lot of "I told" and "she told" going on. Do you have anything in writing regarding your eligibility for a loan and the terms on which it was granted? You may have jumped the gun by committing to the purchase before getting the terms of the loan nailed down in writing. I'm guessing that your loan application and ensuing documents from the bank has that kind of warning.

    Without being able to study it from here, all I can suggest is that you take it all to an attorney and review your options.
     
  5. winebodysoul

    winebodysoul Law Topic Starter New Member

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    Like I said it was the day of closing I had everything in writing. The closing attorney had completed all of the work, the underwriter and processor done. I had been given an exact amount to wire to the attorney for closing and that was complete. I don't know how much closer I could have been.
     
  6. winebodysoul

    winebodysoul Law Topic Starter New Member

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    Thanks for your input. I already planned to take everything to an attorney, just thought this site might give me more to go by.
     

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