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My Lender just got suspended - What now?

By
Real Estate Agent with Realty ONE Group Advocates 484-237-2055 PA License - AB067198

This week a local lender was suspended by HUD from issuing any FHA program loans due to fraudulently submitting false accounting statements to the government authority. The company, Seckel Capital submitted accounts over a period of years which were supposedly audited by independent certified public accountants. But, they weren't. As such HUD has suspended the lender from issuing loans backed by FHA.

 "In addition, HUD's Departmental Enforcement Center suspended owner John Seckel from doing business with the Federal government"

Suddenly, borrowers in the process of obtaining mortgages with this company are finding they can no longer obtain them. 

So what do you do in a situation like this?

Keep Calm and Carry OnFirst - don't panic. Turn to your real estate agent and let them know what has happened, if they are not already calling you.

Your real estate agent should have contacts in the mortgage industry who can step in and help you get to closing. But you need to talk to a new lender as soon as possible as there may be delays.

Many larger real estate brokerages have their own in house mortgage companies and these will often step in and take over these loans. Prosperity Home Mortgages our in house broker has notified us they are ready to step in and take these loans over and have programs in place to close quickly.

Second make sure your agent briefs the sellers agent and let's them know the situation and that you are taking action to replace your lender and go to settlement, but you may need a delay of settlement date.

Make sure you provide your new lender with all the documents they want as quickly as possible. A good lesson to learn here is to keep all documents you submit to any lender in a file so if you need to submit them again you have them ready and accesible. Don't pack financial documents up too early where you cannot access them as you may suddenly need them late in the moving process.

If you are buying or selling in the Tredyffrin Easttown area we can help you make sure you get to closing. A good agent not only sells a house they make sure it goes to closing as well, keeping track throughout the process of everything that is required. Contact us today, Nick Vandekar, Tredyffrin Easttown Realtor, with Long & Foster Real Estate, Inc. Nick@VandekarTeam.com, office 610-225-7400, cell and text 610-203-4543, website www.SellingTheMainLine.com

 

Posted by

 

Nick Vandekar
Nick is a Tredyffrin Easttown Residential and Commercial REALTOR selling The Main Line, Chester, Delaware and Montgomery Counties.

Giving you the confidence to make
the right decisions.

225 W Uwchlan Ave
Downingtown , PA 19335
Office 484-237-2055
SellingTheMainLine.com
Mobile: (610) 203-4543 [call or text me]
Email Me

 

My Blog

   

If you are buying or selling on or around
Tredyffrin Easttown or along the Main Line, 
I can help you, contact me.

Comments(15)

Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Nick & Trudy, 

Your last paragraph says it all!  A good agent will get everything back on track - no worries!

Jul 14, 2017 09:15 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick, OH MY, had not heard of this, but you are right.   We can lead them in a direction to enable the Buyers to get to closing!  

Jul 14, 2017 09:44 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Uh oh, that is not good at all.  I don't think my lenders will ever have that happen to them, but I have some good backups, just in case.

Jul 14, 2017 11:28 AM
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Back in 08' when things were falling apart this was a near daily reality - loans that were cleared to close suddenly couldn't fund because their funding bank went POOF! overnight.  Thankfully the loan process is quick enough to get things back on track with another lender quickly.

 

And as for the company that got busted.....hard to believe people are still thinking they can slide by like this with so many regulations and fines being levied all the time.  Glad to see HUD come down hard on Seckel -- their site lists them as a financial services company too --- not someone I'd trust with my finances 

Jul 14, 2017 11:28 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Wow Nicky & Trudy, not good if this happens to a lender, sure hope my lenders see this article.

 

Jul 14, 2017 12:04 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

In the beginning it sounded like a bad storm in the Mortgage Industry. For some and many affected, they are in good hands with Nick & Trudy Vandekar, 610-203-4543.  "Don't Panic," is great advice. I have complete confidence in their competency and advice. Give Nick & Trudy a call! 

Jul 14, 2017 05:07 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Nick and Trudy - this is why it is so important for buyers (and sellers) to work with an agent who is on top of everything and will be able to guide them through something like this should it happen. It is frightening to believe that people would take advantage like this. 

Jul 14, 2017 05:54 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Nick and Trudy.  This is excellent advice for anyone who happens to find themselves in this unfortunate situation.

Jul 15, 2017 04:52 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

That is a very scary thought Nick & Trudy Vandekar, 610-203-4543 

Jul 15, 2017 07:52 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi  Trudy and Nick --- scary and glad to report I have not encountered this situation yet(and hopefully never will).   It's good to have some solutions.  

Jul 15, 2017 10:16 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Great topic and post, Nick. (For a minute there I thought you were writing about a lender you used who was suspended.)

Jul 17, 2017 12:25 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Nick what a story and indeed only in Real Estate does stuff like this happen... honest we could not make up the stuff even if we wanted to... glad you were not involved directly but if you were clearly you would have it under control, Endre

Jul 17, 2017 09:58 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Nick & Trudy Vandekar, 610-203-4543 sorry to hear of this situation . You have given wonderful advise to everyone  ... Best wishes -Hope you are enjoying the summer -H

Jul 18, 2017 08:35 PM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

You've provided excellent advice addressing this situation, Nick & Trudy Vandekar, 610-203-4543 ... don't panic.  Another lending professional will get the loan closed ... with time and understanding offered by all.  Your guidance regarding a referral will be greatly appreciated, I'm sure ... but your steady hand and calm throughout the mess this Lender has caused will be even more appreciated by your client ...

Best of luck!

Gene

 

Jul 25, 2017 11:44 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Wow! What a predicament Nick & Trudy! An experienced real estate agent has good affiliate connections and can defer a lot of the immediate stress and panic by referring the transaction(s) to other trusted lenders in the area.

Jul 25, 2017 01:42 PM