January 22, 2021 at 10:52 am #73844frustrated10Participant
Today is 1/22/21. Our builders told us we need to close on our house by 1/28/21 otherwise they will cancel our Contract and put our house in the Market. We already missed 2 closing dates.
We’ve been trying to ask our Mortgage Counselor (which is the Branch Office Director) and our NACA Realtor to help us escalate our file with Bank of America but haven’t heard from them yet.
We’re almost hopeless but thought about asking here if you guys have any input or if there’s anything else we can do?January 22, 2021 at 11:23 am #73846Mel MParticipant
What is the hold up with your file? Are you just waiting on clear to close? Had the final appraisal been done yet? Is that in your file? Send an email to your Naca file and Cc every contact you have with Naca. If you have the builders threat in writing include that in the communication.
Also call the mortgage customer service line. Explain the concern and ask them who can help because you can’t get help from your counselor or realtor and you are about to lose your home. Stay on top of it.
I just closed on new construction and stressful is an understatement but you will get there. Don’t lose hope yet.January 22, 2021 at 11:52 am #73847NelsontMember
There ought to be language in your contract per the workbook that prohibits the seller/builder from backing out of a ratified contract and keeping your emd without an official loan denial.
They should not be allowed to relist while still under contract and both parties should need to sign a mutual release form if either needs to back out (this also protects the seller from a fickle buyer who finds a more desirable property in the process). I’m not sure what happens if you don’t sign the mutual release but, the bottom line is the seller is trying to strong arm you in order to get commission and depending on your contract language you might be able to legally hold them to it because not wanting to wait for the bank to finish the review is not a legally acceptable excuse seeing as you are almost assuredly going to get the loan anyway.January 22, 2021 at 2:46 pm #73856frustrated10Participant
Our Status is “Lender Status: Underwriting-Pend Incomplete” right now. Haven’t received Clear to Close yet. Bank of America hasn’t even Verified Employment by phone call yet. Even though file was submitted to them 12/24/20. I believe Appraisal has been done and is in the file though. We’ve tried contacting every single person we could, but no answers. Mortgage Customer Service line doesn’t answer. I was told they’re working from home so we always get transferred to the regular Customer Service Line, which always tells us to talk to our Mortgage Counselor, which by the way, is the Office Director. And he’s too busy to answer our emails, like everyone else. And they’re telling us there’s nobody else to talk to. We’ve been in that loop. I’m truly happy for you and that you were able to close on your new construction! I hope that can be us someday.
It looks like you understand a lot about Contracts. We don’t. We started working with NACA for them to be our advocate in this process. We have never bought a house before and we can’t afford to hire a lawyer to help us understand that Contract. We don’t have the arguments to speak up with someone as big as our builders, Ryan Homes, a huge company that’s all over the country. We’re small people. It would be great if NACA could speak for us and protect us but that’s not happeningJanuary 22, 2021 at 3:20 pm #73857NelsontMember
So one downfall with naca is that they do not advocate for you. You must advocate for yourself. Naca is officially registered with HUD as a mortgage counselling program. What that means is the counsellors are licensed by the state the in which they work to ensure you meet general guidelines and regulations for buying a home. That’s it as far as the membership is concerned. Where naca does advocate is against predatory lending which essentially means they get the word out to stop companies like Wells Fargo (big lender with FHA btw) from shady practices (remember a few years ago when they accidentally foreclosed on thousands of homes?).
It is continually mentioned YOU must be your biggest advocate.
As far as costs go – that is free to naca members. Some states require a closing attorney others allow a title company. Bank of america pays both of these as part of the closing costs the lender pays for naca members. And whether you have a closing attorney or a title company your real estate agent ought to well versed in contracts too. If they do not know personally their firm’s corporate lawyer will. Your agent is also free to you as a naca member whether you chooses in house or outside.
Now if you want to hire an attorney for personal reasons when it is not required that’s a different story. My first suggestion would be to ask your real estate agent to explain your contract and see if there is any legalese that could penalize the seller for backing out. You would really only need to hire to hire a personal lawyer if your seller truly breaches the contract. At that point, depending on whether you get your emd returned and how much it is it may or may not be worth the litigation costs.
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