Hi, My friend have purchased a condo in bay area. They are in escrow and given 3% money. Their loan is rejected from CMG financial because of litigation between HoA and builder. Although, the litigation was not in the same unit still their loan was rejected. They had asked their agent repeatedly about litigation throughout the process since it was mentioned in the disclosure but agent kept assuring that it wouldn't affect them. Now, agent says this issue didn't happen in her entire career and she is also shocked bla bla. Agent is giving options of going through Bank of west, Kal finance or movement mortgage since these agencies have financed people in the same property. They are getting higher interest rate than what they had locked from CMG financial. Their credit score is dropped because of hard inquiry. Any suggestions what to do? #mortgage #housing #bayarea
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Sorry about the loan getting rejected.. Check with www.rishakilaru.com for rates. I got good rates.
Get a better agent next time
It’s not the agent, it’s underwriters not knowing what the hell they’re doing.
Credit score shouldn’t have dropped enough to make a difference unless they’re borderline excellent credit. If that’s the case, rates aren’t going to low from anywhere. They just have to get financed now, it’s less of a hit than losing earnest
It was borderline excellent.
Credit score will remain unchanged for all similarly coded credit pulls within a 30 day period. Meaning you can shop around without affecting your score, this should be a non-issue unless they pulled credit >30 days ago. It might show up on credit karma as changed but when we pull it as a mortgage company we don’t have to factor the previous hard pull into the score.
Litigation in condo buildings is not uncommon. The lending officer should have known whether this type of situation would be approved by their underwriters. Some banks do, some don’t. Have to shop around.
Never ever, EVER waive your financing or appraisal contingency. If your agent even mentions this to you, find another agent until they advise you not to ever do it. Talk to the seller as well as the escrow company. Explain your situation and ask to be refunded the earnest money. Usually they are nice about it. Did they disclose the litigation to you? Either way, you can tell them you will take them to the court and this shit will drag. And escrow won’t release the money until that’s resolved and they might not even be able to sell the property in the meantime. However, you will need to hire an attorney and they cost money. So it depends on how much is in escrow, and who the seller is. Also, wtf is CMG financial? PM me for lender referrals.
Also, the hard inquires within a certain period of time wouldn’t matter. The underwriter will ask you what they are and you can just say it was another lender you used to compare rates. You can disclose the fact that you got rejected to the mortgage agent, but DO NOT disclose anything to underwriting unless you are specifically asked about it. As for the rates, as long as this is your primary residence, and you will keep it for at least 10-15 years, you can always refinance when things get better. Don’t even pay points to lower it (they will offer, just say no), just take the market rate.
Yes. They had put litigation in disclosure. They had asked agent multiple times about it. She reassured everything is fine. Escrow money was $30000. Probably attorney will take more than that?? Since seller have put litigation in disclosure there is no way to win the court case, right? They are on visa and working on stressful jobs. Not sure if they will have time to deal with court and all.
How long has this drug out? Several hard queries count as one for a few weeks. If they want the property, find a new lender.
Agents keep playing such tricks about not to worry about appraisals. When the appraisals are lower they say all s*** non sense, but you are f***d financially
Credit scores won’t get impacted much , maybe a point or two. Refinancing can be done later if the interest rates are higher . Also ask them to talk to the seller s agent who lends in that community .. it is important that the lender has experience closing in the same community as they have background of the litigation. … There are only a few specific lenders who lend to HoAs in litigation ..
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