It is good to have some one shoot the straight truth about matters in lending , real Estate and just in life. This saves everyone of us time , money and effort, Ray at least was honest with the guy and tried to help.
I got a call from a prospective client yesterday about financing a home he is purchasing. He was somewhat anxious because he is relocating from Ohio to South Carolina and due to close on the South Carolina purchase on June 17, which is in 2 weeks. I explained to him that it is going to be tight, but it can be done if he gets me what I need quickly and he was more than agreeable. After further conversation I asked him why the short time frame and had he been working with someone else. His response was he started the process 3 weeks ago with the builder's lender and was just turned down today and that was the reason for the call. As you can imagine all sorts of bells are going off in my head now and here's how the rest of the conversation went.
Me - "Did they tell you why you were denied?"
Him - "Because I was a victim of credit fraud and the loan officer I was working with told me that all I needed was a letter from my attorney stating that I am a victim of credit fraud and he is working on it"
Me - "And the loan officer told you that would be sufficient to explain your credit issues to the underwriter?"
Him - "That's exactly what he told me, but he is not there anymore and someone else from the company called me this morning to tell me I was denied and very angry that I wasted 3 weeks with them."
Me - "I'm sorry to have to tell you this, but based on your credit score of 534 and all the collections and charge off accounts on your report, I don't know of any lender that would entertain making this loan regardless of the reason. Unfortunately, this matter would have to be corrected before consideration and you credit score would have to be 600 at the very least. "
Him - "It doesn't matter that I was the victim of identity theft and my attorney is working on it?"
Me - "Unfortunately the underwriter would have no way of knowing the reasons behind the credit so they have to take it at face value".
Him - "Oh."
I explained to him that there are remedies for his situation, but they take time. I feel terrible for this guy and what he went through. I feel even worse that there is nothing I can do to help him on such short notice.
He was robbed by a thief who stole his identity and then he was robbed out of 3 weeks of his time by an incompetent loan officer. Now he is being robbed of his first home ownership dream and he will probably be robbed of his earnest money.
He will eventually get it straightened out, but not in time for his relocation.
*photo by Boaz Yiftach