Bank Screwed Up

[Jo Ann]

Hi,

I am SOOOOOO frustrated at my bank right now.. I am supposed to close on a house July 11th.. I submitted loan papers to the bank prior to bidding on the property, which is a HUD property and they are sticklers.. My offer was accepted and so was the terms of my loan.. 100% financing, like 8% interest.. Everything is going okay, paying 44k for the house, it appraised at 83K, great shape..

Well, I request an updated GFE (Good Faith Estimate) last week and he sends me one saying 97% financing, FHA.. The house is not FHA insurable because the meter has been removed.. Who knows..

Anyways, I call him today and tell him I want the 100% financing, conventional.. Well all is fine and dandy and I call him at 4:30 to make sure he will be sumitting papers to closing agent by tomorrow and he tells me he is now unable to do 100% financing and I will have to put 10% down.. He tells me this 6 days prior to closing after having EVERYTHING done to property..

How can they do that? I have everything this guy has sent me, faxes, GFE's.. The whole 9 yards.. I wouldn't have went with this local bank knowing those terms, I could have gotten better terms elsewhere, just the 100% was nice.

Does this sound legit? What's going on with this? Is it legal?

HELP!!

[rmurray]

Might be legal..Obviously you never had a final approval and commitment..Check with your states mortgagfe licencing agency and file a complaint on this broker..Most agencies are wantinf info on dishonest lenders...Good Luck..

I do not under stand what you mean.."not FHA insurable because the meter has been removed"....What meter??????????????