"Please Refund My Money for the Appraisal Since My Loan was Denied."
Last month I had a loan denied by underwriting. After appraisal and home inspection services were already rendered, the Virginia first time buyer decided she was owed a refund for the appraisal ordered by the company. When I refused her request she decided to escalate the call to our company president, office manager, and anyone in the company that would listen.
But here is the skinny, the loan was denied because the borrower could not verify a large deposit into her checking account which covered the Earnest Money Check written on her contract. Even after explaining that the loan program does not allow gifts, reviewing the loan process for 100% financing with the Virginia First Time Buyers Program, and sending my Do's and Dont's checklist (via email), I was mythed when the buyer decided or better yet, had to take an unsecured signature loan from her credit union to cover the deposit check written with her contract. Otherwise, it would have bounced based on the fact that she had entered into another contract in Maryland with a different agent. And although she claims to have signed a release from the other "ratified contract" in Maryland, the Broker still cashed the earnest money check submitted with the contract. So the borrower knew the check she wrote on the contract in Virginia would bounce, causing a red flag in underwriting...hence the large deposit(loan) into the bank account. (Borrower says hey Markita is wasn't a gift...)
So after trying to beat the system, deceiving the agents(the realtor in Maryland threatened to sue if the buyer closed in Virginia as she had a signed Buyer Broker Agreement), injuring the sellers, and ultimately losing both properties... the client decided she wanted a refund from our company for the appraisal we ordered, go figure...
At the end of the day, I guess the moral of the story is do not enter into a contract if you are already in a contract !