bank mistake

[tyson]

Just recently we have tried, well are still trying to purchase a manufactured house. We called many banks, but they told us that they were unable to finance 100% on these homes. We called Wells Fargo as a last resort and told them up front what we were buying. They said they could do 100% on the home and began processing a loan for us on july 13. As the days passed we had been keeping in touch with Wells Fargo staff other then our mortgage counselour b/c she wouldn't return phone calls and they had been telling us that our closing date was on August. 13th. We had the appraisal done, title ran everything ready to go. While we were at the beach, we called on August 4th to make sure everything was set to close and they told us it was. We returned from the beach on saturday Aug. 7th to get an email stating the loan was denied from the same Wells Fargo employee that wouldn't return calls. Reason was that they couldn't do 100% on a manufactured house. They later said on the phone that they made a mistake and should have never started the loan because of this. My problem now is that as of the 20th, which is 4 days from now we need to be out of our apartment and have no where to go because this loan was suppose to closed. They are trying to get another loan started and finished by the 20th,which might not close in time. Looks like our stuff will end up in storage and as I said before we have no where to go, but a hotel until it does close. Are they badly at fault somewhere along this mess? Any suggestions?, and would a lawyer be a good person to talk to? I'd like to mention again. They knew this was a manufactured home from the begining when we called, they also talked to the homesale sales rep for info on this house.!!

[rmurray]

There is something else going on here...most likely a loan originator who is very new with Wells....They do often do FHA loans on manufactured homes...this requires 3% down....but this can be paid by a non profit corporation....and up to 6% of closing costs can be paid by the seller...there by making loans that require little or no cash from the buyer...

Our dealership closed 2 of these in the last 2 days through Wells...There are many other lenders with the same rules as well....Our dealership has closed many of these with a company called Bank Source Mortgage in the last few months...

Since you are this far along in this deal with Wells....You need to be talking to someone else in this organization...talk to the branch manager...talk to the district manager...find an originator with Wells that is familier with manufactured homes....

Which area are you in?

[tyson]

we are in west virginia. We were pretty far along with everything, until they denied the first loan a week before closing. Then they made us reapply and started the FHA loan, said they would try to get it closed by the 20th. is it possible to do the fha loan in about two weaks? I like to know b/c we are in a pretty big bind with having to have my stuff out the 20th and them saying its should close on the 20th. Can they do what they did to us? with running everything, settign a closing date, then at the last minute say oops we made a mistake. This shouldnt have been processed? We asked the first question. Can you do manufactured housed at 100%. The person we talked to said hold on and asked someone else then came back and said they could.

[rmurray]

Unfortunately you got caught up with inexperienced folks in the company...YES..they can do this...it is very bad customer service..but they can...Obvoiusly the originator never mentioned the fact that the home was a manufactured home to his/her underwriter...The underwriter probably learned it was manufactured from the appraisal...

Since you have all the required docs in there office....FHA can be formally approved in minutes...The only thing that will have to happen is that the appraiser will have to update the appraisal to match the FHA requirements..if they are FHA approved...Then if this is a used home there will have to be a FHA inspector to inspect the home..and the set up...the set up will have to meet the FHA specs (this could be a problem)..or if this is a new home it will require some additional set up proceedures...These can vary depending on how they are submitting the loan...Most often they arrange for a construction loan as a bridge loan and then refi the package with FHA...This process is far less time consuming and paperwork friendly than FHA with out an existing loan..

I would highly doubt that you will be in the home in 2 weeks...If might be possible if this is an existing home and the inspection goes without hitch...I would be expecting additional delays...if they do not happen..all is well...