Has anyone heard of this happening?

By
Real Estate Agent with Aubrey and Associates Realty

Yesterday while at the office, one of the agents in our office made the comment that he had a neighbor that had taken out a construction loan to build a new house then didn't qualify for a mortgage on that house.  He said that he knew of this happening twice in our area.  One case in his daughter's neighborhood, the bank holding the construction loan actually evicted and foreclosed on the new home.

I have been unable to verify this, and while it sounds outrageous, I still wonder if this could be true.  Has anyone experienced anything like this?

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Rainmaker
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John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

I have never heard of this.  I guess he has to try and sell the home now?

Jun 19, 2008 04:50 AM #1
Rainer
31,474
JoEllen Stranger-Thorsen
Eustis, FL
Lake County, FL

I think it could be a possibility. A change ever so slightly one way or another can knock a person out of a loan. Debt ratio, interest rates, changes in income, tightening of lending standards all could effect the ability to qualify for a mortgage.

Jun 19, 2008 04:55 AM #2
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