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Flagstar Bank / Three days from closing, then denied loan

1 United States Review updated:
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I was suppose to close this week on a construction loan, and was denied. Over Labor Day weekend, Flagstar said they changed their guidelines. Three days from closing. I am thinking about taking legal action. They cost me about 8000.00 in various fees. The senior loan officer doesn't even have the balls to call me, I found out through someone else at Flagstar that they changed their guidelines. This is just ###. Does anyone know if I have a lawsuit here? I'm out 8000 in fees.

Va
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  • Aq
      26th of May, 2009
    0 Votes

    We are in the process of trying to get our motrgage approved. The underwriter at Flagstar informed us (tthe night before our 1st scheduled closing) that they do not approve of a FEDERAL grant that we recieved to help us with closing costs. We had to wait (and get our seller to wait) over 45 days for that grant to process. The money is now here and this lady says we can not get a FEDERAL loan because she does not "like" this grant program and she thinks it is not "legal".

    She first came at us at 4pm the day before the closing (a Wed) to tell us that she does not approve of the fee that our Grant Organization charges (a processing fee). The day of closing with get the Org. to agree (reluctantly) to drop their fee and just give us the grant. She does not get back with us until Friday.

    Friday, late in the afternoon; she tells our realtor that now, she just plain doesnt approve of the grant money in general. She tells us this at 4pm on the Friday before a holiday exended weekend. Thanks alot. She had been informed that there was a poor couple sitting in an empty apartment with a full moving truck waiting.

    Flagstar has approved hundreds of loans with this same first time home buyers grant program. This one underwriter decides that we cannot. All of our things are in a storage facility near our new house. We had a uhaul truck loaded and ready to go for closing. We could not afford to keep the uhaul any longer and we dropped our stuff off near our house. Now, we have dropped the grant and we are waiting on approval without it. She has now drawn this out a whole week. Over a 5k federal grant.

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