Posted on: 24th Mar, 2008 08:54 pm
I have a question that I hope you can help me with. I have bought a home and I had the closing on Thursday. I have the keys, papers have been filed, etc. Now the mortgage broker that I went through is calling me telling me that I have to pay off a small loan and a credit card because my debt ratio is too high to qualify for the loan (due to student loans). Now remember, I have already closed! WTF? I probably chose some shady person because I don't know what I am doing. My question is, why are there still lingering issues with the mortgage company at this point in the game? The funds have been dispersed to the builder. I am so confused. I jumped into this as a single woman who doesn't know what she is doing. You are the only person I could think of that could tell me what to think. Should I contact a real estate attorney?
Hi Christinerod,
Welcome to forums.
I don't think you should have gone with the broker. He is supposed to inform you about the high debt ratio earlier than closing. I don't know whether talking to an attorney will make sense now. I mean what would he do, sue the broker? Again that would cost you. But if the funds have been dispersed, then the builder should be starting with the construction very soon, isn't it? Would you be able to pay off the student loans so quickly in any way? Because I don't think the broker will now cancel the loan though he is responsible for this trouble.
Thanks
Welcome to forums.
I don't think you should have gone with the broker. He is supposed to inform you about the high debt ratio earlier than closing. I don't know whether talking to an attorney will make sense now. I mean what would he do, sue the broker? Again that would cost you. But if the funds have been dispersed, then the builder should be starting with the construction very soon, isn't it? Would you be able to pay off the student loans so quickly in any way? Because I don't think the broker will now cancel the loan though he is responsible for this trouble.
Thanks
Christine, ask the title/closing company if the loan has already recorded. If it has, the lender that was used probably made a mistake in funding the loan without doing a complete review, and is just having trouble selling the loan on the secondary market... this is why they are asking the broker to ask you to pay off certain items, because it'll make the loan saleable to whoever they were going to sell it to. This happened to me before on a loan I did which was a "no doc" loan, no employment income or assets was used. The lender funded the loan, it recorded, then 3 days later they called me up and asked for the borrower's employment... I told them the borrower had no employment, thus we used the no doc loan option. They said they were having trouble selling the loan on the secondary market and it would help them out if the borrower was employed. Unfortunately for the lender the borrower was not, and there was nothing they could do about it. So, check with the title company/closing company if the loan has recorded. Then ask the broker why is there a need for you to pay off the small loan & credit card since the loan has funded & recorded.
shane is right on in his analysis, i think. what has happened here is that the broker has found out his loan is not marketable, and he will have to eat it unless he finds a way to fix it.
you the borrower ought not to have to pay off your other debts - tell your friendly broker to try to find another source for the loan.
undoubtedly the loan would have been recorded by now. you have your keys, your mortgage, your house and your broker is upset because he is losing money. it's called "due diligence" that should have been performed.
if you can pay these things without any hardship, you would be doing the broker a favor and you may want to do so, but i am of the opinion that you are not required to do so. after all, you acted in good faith, and i am sure you anticipated that he acted in good faith as well.
i don't mean to be harsh, but this broker has, unfortunately, dug his own grave with this deal. sometimes nothing can be done to rectify the situation - you have the opportunity to help him if you wish.
it is definitely your call.
you the borrower ought not to have to pay off your other debts - tell your friendly broker to try to find another source for the loan.
undoubtedly the loan would have been recorded by now. you have your keys, your mortgage, your house and your broker is upset because he is losing money. it's called "due diligence" that should have been performed.
if you can pay these things without any hardship, you would be doing the broker a favor and you may want to do so, but i am of the opinion that you are not required to do so. after all, you acted in good faith, and i am sure you anticipated that he acted in good faith as well.
i don't mean to be harsh, but this broker has, unfortunately, dug his own grave with this deal. sometimes nothing can be done to rectify the situation - you have the opportunity to help him if you wish.
it is definitely your call.
These are the type of Brokers/ Loan Officer that are partially to blame for the mortgage mess...they don't know what they are doing. In todays market with all lender being more cautious and conservative than ever, it's hard to believe that your high ratio got past the Loan Officer, Processor and Underwriter. If the money has been paid to the builder/seller, it's a done deal and he/she can not require you to pay them off. Also, this sounds almost like a subprime loan...but should it have been a suprime? Post your credit score and other information and let people give you their opinion if you were placed in the right type of loan.
