Met with the banker on 12-30-10.... 3 years is coming soon 2-4-11

[OneDay]

What a DAY.
Today we found out several things.
-We were not approved for the Ameridream loan as they do not make any exceptions.
-We were told by our banker that there is no refund for the FHA Appraisal or any other inspections already completed.
-I sat down with our banker and had a short chat about my "frustration" with the bank not verifying our FHA status immediately upon us telling them about it. I was told they have to get so far in the loan process before that date is known.

So I went home upset and frustrated. Phone rings and it is this women calling from HUD offices in Oklahoma City, she was following up on my email that I sent to [email protected] with details about our situation.
She asked some quick questions and did some brief research on our case, she confirmed that our FHA foreclosure "closed date" was indeed Aug 24 2008. She then began to inquire about how we got so far into our loan process without the bank verifying our "CAIVERS" which would have told the bank in a matter of minutes what our date was.

The purpose of this methodology would enable the program agencies to prescreen their borrowers and to broaden the Federal Government's base in determining an applicant's creditworthiness.

Odd... I just inquired 1 hour prior to this phone call why there was not a process to do this very such verification.

This women with HUD proceeded to ask for the bank name, contact @ bank and loan# (hmm, my interest is perked), Just as I started to suspect they will be contacting the bank to investigate this matter and prevent it from happening in the future. She said in her professional opinion the bank should refund any and all fees as they failed doing due diligence in the pre-approval.

So... After this call I have a few calls into the bank and hope to have some additional information via email tomorrow.

[bjbk01]

Sorry to hear about your problem with the closing. I do have a question though, I have been told by my bank that it's 3yrs from the date of the "sale" of the home either a sheriffs sale or private sale that the 3 yr clock starts PLUS the 6 months redemtion period so basically 3.5 yrs total. Is this not what your being told?

Good Luck!

[OneDay]

Well... 3 years plus.
The plus depends on the back log of HUD, the woman I spoke to today did say 6 months was average.

She did also mention they may do a suppression to the date if with in a month or two, but exceptions are handled by another dept. I will post all information that I receive tomorrow about who to contact.

And last but not least... Based on this recent HUD information this shows incompetence on the bankers part.
IF this does all fall apart I will be filing a claim in small claims court for all our losses and time spent.

[OneDay]

March 4th 2011.
We exhausted all efforts with US Bank and trying to resolve our loan situation. FHA will not make any exceptions and we cannot attain FHA financing until AUG 24 2011.

We are in works with another bank looking at in house financing to carry us until the AUG 24 FHA date, at that point we would refinance with FHA.
However today I posed the question of "Would in house financing disqualify us from a FHA loan as technically we would have owned a home and not meet the requirement of not owning a home with in the past 3 years?" I believe that answer is YES 100% DQ'd from receiving a FHA loan. The bank is checking with the Denver FHA office for clarification.

This has been quite the process of ups and downs over the last couple months... It is EXTREMELY frustrating that this all could have been avoided had the mortgage specialist with 20+ years experience just checked the online CAIVARS report.

Instead here we are...


We are currently requesting our $490 paid for the FHA Appraisal (+$24 credit report fee) be refunded to us by US BANK as we should have never gotten this far into the process.
Their Loan Price Agreement states:

Loan Price (locked)
In consideration of Borrower's representations and agreements set forth below, and subject to the Lenders underwriting and approval requirements, and provided the loan is closed and disbursed on or before 3/14/2011 (the expiration date), The Lender agrees that the loan will be priced as follows...
I. $514 is payable to the Lender on the date hereof, for credit to discount points and or closing cost when the loan is closed. If the Loan is rejected for credit, income or appraisal, or title reasons, or if the loan cannot be closed at the interest rate and discount points established through the Expiration Date for reasons beyond the control of the borrowers, this amount shall be refunded in full. Otherwise this amount will be retained by the lender and used to reduce the lenders damages for Borrowers' failure to accept and close the loan.

So far they have said they will not refund the appraisal fee as the appraiser has already been paid. We contacted HUD about the entire situation requesting an investigation in the way things were handled by US Bank, a women has been in touch with my wife and the bank manager as of yesterday. The HUD representative is of the opinion we should receive a refund of the appraisal fee.

We will see where this goes from here.

Any thoughts there?