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Flagstar Bank / home lending division - 203k

1 IN, United States Review updated:

I don't even know where to begin with this complaint. We were referred to Flagstar bank by our realtor. The house we wanted to buy needed some work so we found out about this FHA loan called the 203K. The 203K loan (streamline or Full) allows you to borrow additional money on top of the purchase price of the home to make necessary (and approved by the 203K consultant) repairs. We began this process with Flagstar in March of 2009. Here it is, July 2009, 1 day away from our second extension and close date and we STILL do not have the CLEAR TO CLOSE. Flagstar Home Lendings guidelines for this loan are absolutely unbelievable. It has become very evident to me that they do not want to close these loans. They are coming up with condition after condition after condition. Heck there are conditions FOR conditions if that makes any sense at all. My loan officer here in Indianapolis is Tim Paul and I would recommend staying as far away from Flagstar home lending as possible. Tim Paul is basically a paper pusher and he does not care about you or the dream house you are wanting to get into. All he cares about is the loan origination fee so he can get PAID. Granted, my case wasn't the easiest to attempt to close but no case is easy unless you have prestine credit and boatloads of money for a down payment. I would guess that maybe 5% of loans are like that. The rest of us folks - like you and I - suffer.

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  • To
      7th of Apr, 2011
    0 Votes

    Keep your eye out for Tim Paul...we have had some extremely frustrating interaction with him and caught him in a flat out lie regarding the status of a property we were trying to purchase. He moved on to U.S. Bank for a while and is now the Sales Manager for West Town Savings Bank in Castleton. BEWARE!!!

  • Rh
      7th of Oct, 2009
    0 Votes

    I totally understand!!! I had the exact same problem with Tenacity Group in Greenbelt, MD for a home purchase in DC. I put the contract on a house in April 2009, up until the last week of July 2009 and up to my fourth extension they were still unable to get to closing. As a single mother going at this for the first time I was in tears!!! I'm thankful for having the best realtor in the entire world! I fired Tenacity Group and went through a different agent who was able to get me to closing in 3 WEEKS for the same house!!! Go figure! Sometimes the conditions are a sure sign of the lender and underwriter not knowing what the hell their doing and not willing to admit to it. Not sure what your state regulations are, but if you can find another company able to do your loan and guarantee in writing getting you to closing on or before another extension with the same or lower interest rate. I recommend you fire your current lender and take a chance with someone else. Banks are allowed to charge daily fees for every day you're unable to make it to close. So be careful.

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