Thursday, November 19, 2009

So that's that

Tank of Ta Bearica managed to completely eff my clients over. Remember when I said they wouldn't finance my Brooklynites because of the 90 day fix and flip rule for FHA loans? Well amazingly, even though that's what they told me and my clients, that's not what they put in the file. No, when they filed the FHA denial, they put down every reason EXCEPT for the one technically valid one they orally gave. They said they denied for the following:

1. Instability of income
2. Inadequacy of income
3. Delinquent credit
4. Inadequacy of available assets

I'll deal with them in order:

1. The preference for lenders is that buyers be in their jobs for at least two years. Dad has worked at the same job for over eight years. Son has only worked at his job for just under three years. Of course, that could be because he's only 20.

2. While I don't know their exact incomes, I do know that starting income for Dad's job is $45k per year (see above where he's worked for them for eight years.) Based on what I know, I believe the son makes about 2/3 of what Dad does. They have minimal debt. No money owed on cars, no credit card issues. Together, they should easily qualify for more than the $110,000 price of the home they were trying to buy.

3. The delinquent credit belonged to the dad's soon to be ex wife. Unfortunately since they are still legally married and it's a community property state, this one is a little tougher (but not impossible) to work around.

4. I'm not sure where this one came from at all. My clients had the down payment and the closing costs readily available. And they have the ability via their income to easily make the payment.

So what gives? Why would Tank of Ta Bearica put these as the reasons they denied the loan instead of the reason they gave us? Are they just trying to cover their backsides with excessive reasons in case they are questioned? Did they mix up some files and put the wrong reasons on the wrong file? Are they really just that incompetent? (That's the one I lean towards.)

So why does this matter at all? Because it's an FHA loan. And those reasons, those made up reasons regarding my clients? They stay with my client for the next six months. That's right. Six months of bs reasons for a denial of a loan. My clients are now completely screwed and will not qualify for an FHA loan again for the next six months.

I hate that bank and will make it a point to spread that message to any and all future clients to the best of my ability. They should have been allowed to go under when we had the opportunity. Instead, we're paying them 20 billion to eff up my client's and my life.