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I want house, but bank changed my program

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cdoll

Junior Member
What is the name of your state?Illinois
I am wondering if anyone else has come accross this. I am buying my first house (condo actually). I am getting a 7k grant from the government. Which I didnt even know exisited, but the bank told me about it. Great! I got pre-qualifiied for the mortgage. But i wanted to be approved for sure before doing anything. So I waited, and waited for the approval to come through.

It finally did. yay! and to make things better my bank switched the program I signed up for.. now they were also giving me another 3k down and a lower rate.

I decided on the condo with those figures in my mind. Signed on the contract. Made my bid, and got the condo that night. The seller really needs to get a bigger place fast as her other teenager daughter wants to move in. I paid for a home inspection, as was part of the agreement for the grant money. the only "problem" was a leak in a faucet.

I even finally gave in to the seller pleading for a earlier closing date, therefore making me pay more money.

Today I called the bank about another potential problem with the government grant, and she assured me it was fine. So i thought all the hiccups were out of the way. But it was then the bank informed me there was yet another problem.. The new program they moved me into (with the 3k and lower rate) was a new program and had kinks they need to work out. And one of them is they dont think I can have that program with the government grant I am getting.

So now what? I did contact the real estate attorney, but I am crawling out of my skin wondering whats going to happen, and am I going to be paying a lot more then I had budgeted for.

Has anyone else ever come across the bank taking money away from you right before the closing therefore paying higher mortgage and interest?
 


Souix

Senior Member
cdoll said:
What is the name of your state?Illinois
I am wondering if anyone else has come accross this. I am buying my first house (condo actually). I am getting a 7k grant from the government. Which I didnt even know exisited, but the bank told me about it. Great! I got pre-qualifiied for the mortgage. But i wanted to be approved for sure before doing anything. So I waited, and waited for the approval to come through.

It finally did. yay! and to make things better my bank switched the program I signed up for.. now they were also giving me another 3k down and a lower rate.

I decided on the condo with those figures in my mind. Signed on the contract. Made my bid, and got the condo that night. The seller really needs to get a bigger place fast as her other teenager daughter wants to move in. I paid for a home inspection, as was part of the agreement for the grant money. the only "problem" was a leak in a faucet.

I even finally gave in to the seller pleading for a earlier closing date, therefore making me pay more money.

Today I called the bank about another potential problem with the government grant, and she assured me it was fine. So i thought all the hiccups were out of the way. But it was then the bank informed me there was yet another problem.. The new program they moved me into (with the 3k and lower rate) was a new program and had kinks they need to work out. And one of them is they dont think I can have that program with the government grant I am getting.

So now what? I did contact the real estate attorney, but I am crawling out of my skin wondering whats going to happen, and am I going to be paying a lot more then I had budgeted for.

Has anyone else ever come across the bank taking money away from you right before the closing therefore paying higher mortgage and interest?



Since no one has answered this yet, I am just wondering if you were given a GFE, Good Faith Estimate
 

cdoll

Junior Member
yes. and i had forgotten about that. I was given that on the day i applied. thats not after they changed the program. so with that now I wonder if i am out of luck on this.

maybe i should have asked for another since the the bank told me they changed the program on me.
 

jnazareno

Member
cdoll said:
yes. and i had forgotten about that. I was given that on the day i applied. thats not after they changed the program. so with that now I wonder if i am out of luck on this.

maybe i should have asked for another since the the bank told me they changed the program on me.

Maybe the Government run out of money to fund that $7k ?
and the bank moved you to yet another program with lower grant and higer rate ?
 

Souix

Senior Member
cdoll said:
yes. and i had forgotten about that. I was given that on the day i applied. thats not after they changed the program. so with that now I wonder if i am out of luck on this.

maybe i should have asked for another since the the bank told me they changed the program on me.


Yes you should have gotten another GFE. There may be some RESPA violations here on the part of the lender
 

cdoll

Junior Member
nah, the 7,000 is mine. its good for a year. I had excellent timing on getting in on that program. the program that is being taken away is the bank program for an xtra 3k and lower rate.

I am not sure what a RESPA violation is, but I think I probably did a good thing by calling attorney. Hes was supposed to call the bank to find out whats going on.

and I almost went without a attorney.... i cant even imagine what I would be doing right now without him to call.
 

Veronica1228

Senior Member
From the FDICs Website

The Real Estate Settlement Procedures Act (RESPA) provides borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process. RESPA provisions also protect borrowers by placing limitations on the use of escrow accounts and requiring specific disclosures of applicable charges and disbursement dates.

The RESPA Escrow Program is an efficient tool for determining whether a financial institution is properly calculating and disclosing escrow account information as required under Section 3500.17 of the Department of Housing and Urban Development’s Regulation X which implements the Real Estate Settlement Procedures Act.
 

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