I own a mortgage company so was not too easily fooled when my home buyers provided me with a Mortgage Commitment, that took 10 weeks to get, so it would be the real thing I was told. The borrowers were trying to "boost their credit scores to obtain a better rate"....or something...The mortgage rep is a bit shady.
Below is what I received (personal info removed) on the mortgage commitment deadline date, at 9 pm, after reminding the mortgage loan officer several times that the commitment was due. He screamed "IT'S FRIDAY NIGHT, BLAH BLAH BLAH!" Such dedication!
__________________________________________________________________________________________
MORTGAGE COMMITMENT- NATIONAL CITY MORTGAGE
Please review the following conditions of your loan approval:
[x] 1. This pre-approval is subject to a loan amount of $394,200, loan to value of 90, and payment amount of $438,000.
__________________________________________________________________________________________
After repeated calls to his supervisors, I was finally told this is "not a commitment, it's a pre-approval commitment". Isn't that an oxymoron?! They said the borrower may not yet qualify for the mortgage and are hoping to soon but could tell me no more. I was relived to receive somewhat of a straight answer finally.
This does not fulfill the terms of the sales contract.
Since my buyers are stated income, this is all they can provide, no other lender can help, they won't allow me to help, and the mortgage lender refused to remove "pre-approval", I am putting my house back on the market. I will likely lose money now due to being in a rush to sell due to this unethical loan officer. Still...cut my losses!
I feel providing a Pre-Approval Commitment as a Commitment is deceiving. When these borrowers can not get a loan and surprisingly to the seller, who thought that had a mortgage commitment, bail on the deal at the last minute, that is harmful to the consumer and the public.
Anyone else offering preapproval commitments in lieu of a commitment? I am surprised National City's lawyers condone this. Should I report the LO?
I wanted to give you all a head's up to look for the condition in the fine print on the commitment for "pre approval".
Comments (4)Subscribe to CommentsComment