What is going on with the mortgage market? 

It is like a lion let loose on the streets.  At the beginning of August a client of mine closed on her very first home as a single Mom, so proud and happy ... a real significant accomplishment!  The home she wanted so badly was being sold by a couple that put a bid in on a short sale home.  Long story short this ended up taking over 5 months for the short sale approval.  My client waited for two months of that because she really wanted this home.

Finally after a couple months of waiting ... closing day!   

This was a 203K Streamline Rehab loan so she could have the whole house painted outside (an FHA mortgage loan requirement to get funding for this home) and a new furnace put in.  Things didn't go so smoothly, the 1:00 closing turned into a 1:00 - 5:30 closing with the funding finally coming through at 5:30.  At midnight, without warning to the mortgage world, the funding company, Taylor, Bean, Whittaker was shut down by the Feds for wrongful conduct.  Initial reaction was ... Phew!   At least she closed!

NOT!  She closed BUT still cannot locate her $12,000 Rehab loan so it can be released for the work that needs to be done.  She still has not received word about which bank has receivership of her first  mortgage;  she hasn't gotten her mortgage coupons so she doesn't know who is holding her mortgage now and therefore does not know where to send her mortgage payments.  She located the company that supposedly has her rehab loan but she is getting the run around about getting the loan released for the work to be done. She was told to send her contractor estimates again which she shouldn't have to do ... she was already approved for the mortgage and just needs the funds to be released.   She needs a new furnace  and is counting on the loan disbursements to have it installed before the hard winter hits.  I've recommended she go to the Attorney General, HUD and local media outlets.  These banks are robbing people and seem to be getting away with it.

Has anyone had this experience and found a way to resolve it?  This is just so wrong. The little guy gets hurt all the time and it makes me so mad that this really nice lady is being battered by the banks that got the bailout money. 

Where is her money?    Any suggestions???