Flagstar Bank pulls the plug in the 11th hour!
These 1st-Time Home Buyers are awesome folks! They're the kind of people you LOVE to do business with. Even though they're relatively young and just starting a family, they've been exceptionally prudent and responsible with their finances. Their credit scores are exemplary. They have no outstanding debts. And both husband and wife have very stable histories of employment/income. They have a substantial chunk of change in the bank, and their parents are giving them a very generous gift to be used for a down payment.
Halfway through the transaction, there were some concerns voiced over the tax ramifications of the parents giving these kids a gift, so the gift was changed to a loan, and a vehicle was used as collaterral.
Yesterday, one day before closing, the kind folks at Flagstar pulled the plug. They stated that the vehicle was not sufficient enough to pose as collaterral for the loan.
They were asked if additional collateral was furnished, would that suffice? They said "No."
They were asked if the loan disappeared and the money was again offered as a gift, would that work? They said "No."
They were asked if there was anything that could be done to fund the loan? They said "No."
So 'Thank You' Flagstar Bank! Your New Wave of Banking is simply a wave 'Good-Bye!'
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Rich Jacobson is a licensed real estate professional providing empowerment and relentless representation for his clients of residential properties and vacant land throughout all of Kitsap County WA and portions of Pierce, Mason, and Jefferson Counties. You can also find him at KitsapLife.com, SOUNDBITEBLOG, and Crabbing in the Hood.