Any advice for dealing with Prom Queen banksters?

[catrose]

For 6 months I tried to get a mortgage to pay off my construction loan. I went to my local, small-town bank. They promised to deal with me personally, but their lender was Flagstar Bank. For 6 months I provided all sorts of paper and credit worthiness. They ordered 2 appraisals, kept changing our list of fixes, made us go through all the paperwork again, and despite preapprovals, title searches, and down to everything but a signing date, they turned me down last Friday.

Despite the 2 appraisals, they didn't think the home was worth what 2 appraisers said it was. I was asking for $188K on a house with a replacement insurance value of $400K on 5 acres of land. They also didn't like that my employment status had changed. My company, whose initials and color nickname shall remain anonymous, has Rules that half-employees like me have to be returned to the contracting pool every 3 years. The contracting firm is now my employer, supposedly for only 6 months, but despite my getting a 40% raise out of the matter, the bank didn't like it. I begged my boss to keep me on payroll a few more weeks until the mortgage went through, but, you know, business is business.

So with an income of over $100K, not a days' interruption in work for over 4 years (I started as a contractor at this place too), credit scores well over 700, I'm in line to lose my house because my construction loan is overdue and I can't get a mortgage to pay it off. I received several extensions because the paperwork was getting done, but now there's no paperwork other than DENIED.

Any advice? Anyone to turn to? Does anyone (HA) monitor banks' behavior? Any point in going anywhere else for a loan? Don't all banksters think alike?

[elleng]

1. I have no special knowledge, but NO, all banksters don't think alike.

Go elsewhere, immediately. Have no idea your alternatives in the area, but there's probably someone around you who actually IS providing $, might want to 'compete' with your looser bank.

Best of luck, and maybe cross-post in Texas forum.

edit: Do you have a decent member of Congress? State Rep? Try them, too.

[catrose]

6. Decent member of Congress?

Rs all the way.

[elleng]

12. Provide any constituent service?

[Lars39]

2. Don't know, but I can k and r.

I wonder if a credit union would help?

[catrose]

7. Thanks for the K&R

First I went to my credit union. For many more months, their contracted mortgage firm didn't answer my calls and emails and generally dicked around. I finally walked into their office and sat until they actually gave me answers. One of my questions was "Is there still time to get the tax credit?" The answer being no, it was now too late, I walked out, because it was totally their fault that it was too late. I guess I could crawl back.

[itsrobert]

3. I'm going through similar hassles

Pre-approved. But after sending in every bit of paperwork, they are saying my wife's income cannot be counted because she has only worked 18 months and not two years. Even thou she just went full-time and got a pay raise.

[catrose]

8. I'm so sorry.

More employer abuse affecting our lives. We all need unions.

[GSLevel9]

4. ahhhhh... the human brain. I first read Porn Queen Banksters. nt

[catrose]

9. I like it.

[customerserviceguy]

5. The sign that you were going to get turned down

was the fact that they dicked around with you for as long as they did. During boom times, it can often take awhile for a loan approval and going to the final closing, but that's not the case right now. You should definitely try to find two or three lenders, and let each one of them know that whoever crosses the finish line first gets the deal.

[catrose]

10. Good idea

I did feel that all this delay was not a good thing, even though they kept talking sugar.

[customerserviceguy]

13. Sugar

is just a polite way of saying 'shit'. The entire real estate business depends on lies, I know, I worked for two and a half decades in the title insurance business.

[AngryAmish]

11. 1. Call a mortgage broker.

On a larger note, within my memory it always used to be hard to get a loan. When things got easier we got the bubble.

So this is what it looks like when people are scrutinized like they used to.

I'm sure you will work it out.

Side note: We are refinancing. Our mortgage is bank-owned. They will not refinance us - they say we are underwater on our loan because the only houses they use for comps are in a worse neighborhood than us and sell for almost half of the value of our house - putting us underwater.

Well, we talked to a mortgage broker. Fannie and Freddie are doing crazy things to reinflate the bubble and they have no problem giving us a loan (well, Freddie and Fannie won't be giving us a loan, but you get the picture).

Get thee to a mortgage broker, stat.

[EFerrari]

14. We're in exactly the same position.

In fact, we were approved for a refi when the crash happened and were never funded.

So, basically, we need an Act of God or foreign money or we lose the farm.

[catrose]

15. So sorry!

I hope you can get your funds. It seems to me that there ought to be someone on our side, somewhere. I'm realizing how totally stacked the deck is against us. (And madder every day about TARP)

[BlueIdaho]

16. Not all small banks need an outside lending source.

Look for a long standing community bank (not a Johnny come lately) big enough to lend their own money - no need for another bank participating in a loan in first or second position. They do exist and while its true the auditors and bank boards are making loans more difficult at present, you may find a bank that can get you what you need.

Good luck!

[westerebus]

17. USDA home loan program.

I'd give them a try.

[Capn Sunshine]

18. What part of the country are you in?

You sound like a good candidate for a FHA 201k .
Did you retain copies of the appraisals? If so what is the % of what you are asking for vs the appraisal?

PM me I might have info for you.

[catrose]

19. TEXAS!

I was asking for 80% of the appraisal; I do have both of them.

[LatteLibertine]

20. Many do

and a good deal of the largest banks we bailed out are creating shark businesses to pursue peoples' homes and remaining savings.

People should be even more outraged than they are. The reality of the situation is almost unbelievable.