No closing date in site!!

Home Forums Purchase Program No closing date in site!!

This topic contains 4 replies, has 2 voices, and was last updated by  FBrunson 2 months ago.

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  • #42460

    FBrunson
    Member

    We found our perfect home and even negotiated for seller contribution towards our interest rate buy-down. We have been supplying whatever is asked of us as well as staying on top of everything to ensure we close on time…well that didn’t happen. According to NACA you are supposed to close within 30 days, but we haven’t and now it is going on 14 days pass our original closing date (May 31, 2018). We have no closing date in sight, according to NACA, and are in danger of losing our dream home.

    Keep in mind the below information:
    -we have 2 minor children, one of which has a disability
    -we have credit scores in all bureaus above 746
    -we furnished steady employment of at least 2 year (without a 30day gap)
    -have a credit card with the lender (Citi Bank)
    -NACA has ran 3 credit checks on my husband and I (2 soft and 1 hard)

    Our lender is stating that I have unstable employment. I recently switched jobs for a significant increase in wages. My new job is contract to hire, similar to my previous one. My previous job I was contracted with them in July 2016, because I was an excellent employee I went permanent Nov 2016. I was permanent there from Nov 21, 2016 until March 23, 2018. Again I left for the same position with more money as a fortune 500 company. My new job was started March 27 2018 and we found our home on April 25, 2018. I really like my new job, but this process has put me in danger of losing my new job. We understand that the housing process is for us to find a home, however having to take off a few hours every so often or having to take multiple extensive calls to multiple NACA representative is strenuous. They don’t give you a clear answer majority of the time and our closing coordinator doesn’t believe we will be able to get the loan. With all of the checks, money spent on home inspections (2), strain to my new job, and no definitive closing date or reason behind it, we may end up having to get an apartment. We really believed NACA was a good program and would help us like they said in their mission statement.

    #42501

    TTrumble
    Member

    Hello FBrunson,

    A contract-to-hire status unfortunately is going to be viewed as an unstable employment situation, and accurately so. The simple fact is that at this point in time you have no guarantee of continued employment after the end of the contract period. If you can obtain a letter from the employer that will guarantee you a permanent position at the end of the contract period, then the bank would probably be able to overlook your present status.

    Please also note that based on the dates on which you switched jobs and found the house, your counselor and NACA as a whole clearly believed the process could and should be completed in spite of the job change, and continued to work on your behalf to get the loan process completed so you could close on your new home. It is the bank that has thrown up the roadblock, not NACA.

    I am the father of a severely disabled child myself, so I can sympathize with you more than most people. But if we are to get you past this problem, we need to put a laser-like focus on the sole relevant factor here, the job status.

    Go to your HR department, explain the circumstances, and make it clear that a letter of guaranteed continued employment is the only thing standing between you and closing on your new home. Many short-term employment contracts are for just 10 weeks, and as of this writing you are just past 11 weeks at your new job. They should be willing to at least take the request to the necessary executives for consideration if they can’t authorize the letter themselves, given the unique circumstances.

    Get that letter, get it to your Closing Coordinator, and get him or her to bring it to the attention of our National Director of Underwriting so he can go to bat for you on getting the bank to give you the Clear to Close.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 2 months ago by  TTrumble.
    • This reply was modified 2 months ago by  TTrumble.
    #42509

    FBrunson
    Member

    Thank you. My contract is for 12 months minimum and the ultimate goal of my employer is for me to go permanent. Do you believe this will suffice?

    #42540

    TTrumble
    Member

    Hello FBrunson,

    Get them to write something like, “While the contract-to-hire period is 12 months, our intent is, and always has been, to make this position permanent at the end of the contract period. As of this date we fully intend to follow through as planned and make (FBrunson) a permanent, full-time employee at the end of the contract period”.

    The key thing here is that the intent is clearly spelled out in no uncertain terms.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #42544

    FBrunson
    Member

    Hello Tim,

    I was under the understanding that the NACA process was to make sure I was stable and able to afford my mortgage. After the NACA initial paperwork, it showed that we would not have a payment shock of any kind (our initial MC said that this put us in a better position than most members). With all of the documentation, financial records, and proven employment records, this should be more than enough.

    As we are in Florida, no employer will write anything pertaining to permanency employment prior to your contract ending. As stated earlier my contract is a minimum 12 months and can extend longer or roll permanent earlier. As you may know Florida is an “At Will To Work” state, meaning employers can discontinue employment for full-time employees at any time, for any reason. This means no one’s position is permanent and unwavering in Florida. As I have explained and gave documentation to my NACA closing coordinator I do not have any gaps in employment and my income is steady. The main reason I left my previous job was that this new position was a better career move as well as the added benefit of increase pay. I have furnished all paystubs, multiple VOEs and LOEs, bank statements, and other documentation asked for.

    I don’t know what else I can provide that can prove my income is stable. I have excellent credit and this is not my first big loan. I’m financially stable, so I am not really seeing why this process is taking this long. There were other First-Time home buyer programs that offered us similar assistance in purchasing a home, but after me and my husband attended the initial workshop we were hooked. We believed in what NACA was telling us they represented and we believed that NACA would be fighting for us to purchase a home. We wanted to become members to help others in purchasing a home as well, but the process that we are going through isn’t how NACA represented it. Now we are 15 days in counting pass our original closing date, looking at a per diem that is eating away at the negotiations we did to fix the roof, and still very little confidence that we are going to close. At this point, it looks like NACA doesn’t want to approve the loan (the lenders are in-house). Not because we can’t afford it or that my employment is unstable, but rather some other unknown reason that I have yet to find out.

    Also, I appreciate your attention and replies as I know how hard it is when you have a child with a disability.

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