Whole Story. Help Please

[Doyle Willis]

In June of 2003 my wife and I bought 2.9 acres with the idea of moving our mobile home to the land. After getting cost on this we decided to try and buy a new home and trade in the old one to avoid the cost of moving. We talked to a few dealers in the area about a used home. We found out that a used home with bad credit is harder to get than a new home we talked to a different dealer. They seemed really helpful to us and looked at our credit and showed us what they could do. We originally picked out a Fleetwood Entertainer 3/2. And we paid our mortage fee of 75.00 to the broker and saw and signed copied of the good faith estimate. This was in November of 2003. When this first started the dealer told us we should only use my credit and income for the loan. I told them that electricity and water was already there. But I need the note on the land we had bought to be paid. The payments are 323.76 per month for 3 years, from the loan of June 2003. Everything went along smooth until January 2004. Then I was told I had to have the land surveyed. Which I did at an out of poket cost of 300.00. After that was done we were approved for the loan, according to the dealer. But the house we had picked out was already sold and to get us into the house quicker we could have a different Fleewtwood. Same model, but 4/2. Really nice and no extra cost to us. So we said OK. Then we ran into a problem on the title to the land. So I had to hire an attorney to help us get it fixed. After paying him 500.00 to help us everything was OK. Then when the dealer contacted us, they were no longer a Fleetwood dealer. But they would give us a really good deal on a 5/3 Silercreek. We looked at the house and were not convinced to buy it, so the dealer said they would give us a 5,000.00 gift certicate to best Buy to make up for what was not in the new house. We agreed to that, verbal only. This is now May of 2004. In June of 2004 we were finally ready for the first closing. The dealer called us 1 day before the closing and told us that to make the deal go through, they had to lower the price of the home because our land did not appraise at the same amount as before and to keep us under the rules for FHA they had to lower the price of the home and not give us the 5,000.00 gift certificate. But that the loan was for the amount that we originally agreed upon, so the extra money that we had made in payments on the land would be reimbursed to us on closing. Well we agreed to this, since it was a much larger home and we would still get about 2,000.00 to finish out what we wanted. On June 22, 2004 we signed the first closing papers. The final closing was set for July 30. We showed up for the final closing and were told that the tital company had no documents for us. The dealer was at the signing and told us to go ahead and move in since the paperwork was just late. The other thing I forgot to mention was that a few days before final closing I asked the dealer when we would need to be out of our current house, since I was under the impression that it was a trade in, and was told that it was a no money down closing and the old house was still mine. OK, the temp loan was due on Sept. 22, that date came and went. Now in Novemebr of 2004 my wife and I are having to cash in our 401k's to pay the land off, because now we are out of the debt/income ratio. We have to pay off the land to quailify for the mortgage. Can anyone help us. To me this seems like I have been screwed over to the fullest. What can I do?

[rmurray]

GEEZ.....lots of problems here..

First...paying off the land will not have ANY effect on your debt/income ratio (because the land should be paid off and not be involved with this ratio)...As a matter of fact..the existance of a 401K would commonly be a requirement of the FHA for credit challanged folks...Something is very wrong here..you are NOT getting good info...

First..ask to meet with the loan originator..without the dealer present...Get the real info....It actually sounds like they are taking you away from a traditional FHA mortgage and going to land in lieu HIGH RATE LOAN...

Second...call your construction lender and find someone high enough to get you docs that showed you approved....

Has your credit or income situation changed for the worse during this time????????

Has the dealer recieved all of his money????

Talk to another lender to get your own finance..might be the right way to go..

Talk to a real estate attorney...maybe the one that closed the construction loan..maybe a different one if the first one is to close to the dealer..Be sure to show him/her all papers that you have signed...Forget verbal agreements..

[Doyle Willis]

I do not have a copy of verything I signed. I have emailed you privately and would very much like to talk to you. Please respond to my email with a number I can reach you at.

Thanks

[Nick]

You should get an attorney and go after this retailer!