Can they do this?

[drunnels]

What is the name of your state? Texas
We went through a particular mortgage compnay for a home loan. It is one which we purchased our last two homes through. We received a pre-approval letter and then out of the blue, our realtor asks why we changed lendors. We were unaware that this mortgage company had passed along all of our information to another lender. We have yet to receive any other correspondence from the original mortgage company and because of problems with the other one, we have sold our home and are now paying staorage and to live in a hotel with our two daughters. We have a contract on a house but everything was delayed because of the change in lenders. DO we have any legal rights to compensation for the incurred expenses? I mean it is a violation of the privacy act if we were not notified or did not give authorization to pull our credit information, isn't it?

 

[amortgageman]

I am pretty certain that if you went through the proces of getting a "true" preapproval, that you signed the document to allow the lender "permission to provide any investor any and all informationand documentation that they may request."

 

[MortgageGuru]

What appears to have happened is that the original company couldn't do your loan and they were trying to help you out by sending your information to someone who could help you. Just like any other profession, it's not the company, it's the people who are taking care of you.

 

[drunnels]

so what now?

well, well. That really sucks. I figured as much. I am just so disappointed that our situation seems to matter so little. My husband has a blip on his credit with the Attorney General (it is 6 years current and we have proof and documentation from the AG office, but it is next to impossible to have anything negative from them removed from your credit report. Anyway, we make 6 figures a year and I just do not get it. Creditors are on my $ hit list these days.
We just don't know wether to find a rent house for a year and spend the $$ to clean up this credit crap, or pray that it will actually be ready to close by FRiday or even Monday? Let's just say the "trust" factor has a long way to go these days with this guy.

 

[amortgageman]

If it is only one "blip" on your credit report, and you have the proof that the account resolved, the lender should be able to get this through with no problem, and even have a credit rescore done if necessary.

 

[BriantheBanker]

Just like any other profession, it's not the company, it's the people who are taking

Are you sure the mortgage company is not still actively a part of your application process. What may have happened is that a corresponding lender has been brokered to obtain you loan.
Almost all banks can wear the 'hat' of a broker. (using another companies money/guidelines to lend money.)
I would be suprised if the original mortgage company just turned over your file. Call orig mort co. and ask.

In the words of another member, "Just like any other profession, it's not the company, it's the people who are taking care of you."

Good luck,

BriantheBanker