Saturday, March 24, 2012

We are 2 Days Away . . .

From finding out whether we will be homeless at the end of May.

I feel completely sick and devastated right now.  Add on top of that how stupid I feel for even telling anyone about our “first home.”

As of right now, we no longer are buying “our” townhouse and we have a good chance of not being able to stay in our current apartment.

Everything is just a mess.

Let me rewind a bit.

A couple weeks ago, we got preapproved for the exact townhouse I showed you pictures of in my last post.  We put in an offer, got the offer accepted, and were told that as long as nothing went wrong with transferring the title, we didn’t spend tons of money, and Mr. CS didn’t lose his job, the final approval process would go smoothly.  We were already preapproved for that home.  The mortgage officer already had all w2’s, tax returns, etc., during the preapproval process, so we assumed he had been thorough when preapproving us.  I don’t really want to go into all the details for security reasons, but basically we were 99% certain the home was going to be ours.

Once we heard all of that, we paid $300 to have an inspection that went pretty well overall.  We spent some time last weekend checking out our new neighborhood.  We learned that there was a huge, beautiful horse farm just down the road which melted my heart because I felt like we had a part of the country in the city.  We couldn’t wait to move in and call it our home.

We dreamed of brining our first baby home to that house.

We dreamed of buying a dog this summer.

We dreamed of going running in the safe neighborhood, of house warming parties, and of beautiful gray and aqua walls.

We dreamed of paying off our student loans in five years.

We dreamed of finally having a place of our own that was cheaper than our current apartment.

Since it had already been a week and half since we had the offer accepted and we had only heard positive news about the final loan approval, we gave our notice on our apartment.  We gave it a little less than two weeks early because there was another young couple, just like us, who were interested in renting our property and they had to give their notice soon.

Then, this week, our mortgage officer called us and basically tried to talk us out of the house.  We should have seen it as a major warning sign, but I was so busy this week working on filming myself in the classroom and doing hours and hours of work to get my teaching license that I just assumed he was looking out for us.  He told us that because this property did not accept FHA loans and the loan it does qualify for is much stricter than FHA that we would have more money if we bought an FHA-approved property.  This made no sense because he told us while we were getting preapproved that the monthly payment would be comparable to what it would be as an FHA loan.  We were so confused about him dissuading us because this was our dream first house (at least in that price range).  However, we just blew it off.

Then, he called later in the week and told us that we were “cutting it close” and that when he ran our numbers through a program, it said we were approved, but when he manually entered them, it said we were not.  He promised us he would let us know by Friday if we would get the home or not.

Mr. CS had the day off yesterday and waited by the phone all day.  When he didn’t get a call, he called the mortgage officer because come Monday, the young couple will be coming to see our apartment and will most likely put in an application on it.  The officer again basically told us nothing concrete, but told us it looked bad.  He said he would let us know for sure on Monday.

Well, after talking to my parents about it (who had talked to him on the phone as well), we learned that we got scammed.  He basically told us that we weren’t getting the house without officially telling us, probably because he didn’t have the you-know-what to tell us that he messed up and never should have preapproved us for the house in the first place.  I honestly think he didn’t think they would accept our low-ball offer, so he preapproved us for it anyway.  That, or he just didn’t spend the time doing a thorough preapproval and didn’t want to admit his error after the offer was accepted.

We called our realtor last night and his exact words (coming from a man who has been completely professional) were “Oh sh*t.”  He could not believe this happened.  He felt horrible.  He said he had never heard of anything like this happening once someone was already preapproved when no financial changes were made.  The loan should have gone through as long as something with the seller didn’t go wrong and we maintained our income and debt, which we did.

After looking at our preapproval letter more closely and learning more about the final approval process, I know this should have never happened.  We should not be preapproved one day and then told that we don’t make enough money for the house or have too much student debt the next day.  If that could happen, what would the thorough preapproval process with all tax returns, w2’s, and student loan info be for?

The worst part about it is that we didn’t learn about all of this until last night when our landlord’s office was already closed for the weekend.  We left a frantic voicemail message and also emailed them begging them to let us retract our lease termination letter.  The couple who wants our apartment is coming to see it on Monday.  We are praying that the office will allow us to renew our lease so we can have a place to live until we are ready to look for a house again. 

I feel like a complete prick now because this other couple really wanted our apartment and now have their hopes up that they are going to get it.  They may still get it and we will be in a frantic search for a place to live once our lease is up.

This whole thing is a disaster.  I felt like I got hit by a train when I woke up this morning because of the emotional toll this has put on us.  Thankfully, my faith in God only gets stronger through these situations and my relationship with my husband will not suffer because of some person who completely broke our trust.  I’m praying that he doesn’t do this to anyone else.

The moral of the story is to pick your mortgage officers carefully, to not be quick to trust others, and to not get too attached to a house until you are living in it (and maybe not even then).

Ugh.  I hope you all had a better week.  I’m ready to crawl into a hole for a while, but I need to be strong.

It’s just a house.


  1. Do not blame yourself, this is totally the lenders fault! I think this guy is in the wrong job! I hope you can stay at your apartment. You have the right attitude! I hope your realtor doesn't recommend this loan officer to anyone else looking for a home!! Wishing you the best! Keep your head up something good will come from all of this!

  2. Sarah - that's awful and I'm so sorry!

    It's hard not to get attached to something when you're asked to sign a contract saying you'll love it and take care of it for the next 30 years! But if I've learned anything in life, it's that there is no hassle-free, smooth house-buying experience. There is always a snag - unfortunately it's happened to you!

    I hope you and San realize all those dreams on your list, even if the timeline shifts a little. :)

    Good luck!

  3. That is just awful how the loan officer led you on. I really hope everything works out with your current apartment. Keep your chin up and hang in there!

  4. Completely the lender's fault. I would contact a supervisor, even the MN Commerce Dept as they are strictly regulated. I know my niece and her hubs are jumping through a lot of hoops right now to buy a house. They've been living with my sister since November, had their offer on a short sale accepted in December and still haven't heard from the bank. Last week they made an offer on a different house. Crazy times right now for real estate.

  5. Oh no. :( So sorry to hear this news. Our mortgage officer messed up too, and we also lost the first house we had bid on. It seems like there's a lot of incompetent mortgage officers in our area. So frustrating. I think your current landlord will likely let you guys stay because he knows and trusts you, and it will be less work and effort on his part. Don't feel bad about the other couple - you didn't do this intentionally, and you have every right to stay where you are. I'm sure they will find another place that works just fine. Sorry again for the bad news. Buying a house was really stressful.

  6. Oh I'm so sorry to hear about this!!! I can't believe the lender would even do that!! Makes me feel sick!! Update us soon so we know what is going on!! No matter what, things will work out though! You and San have each other and that's what matters most!! :)

  7. oh no... reading this had my stomach in knots! I'm so sorry to know you're going through this! But it's totally not your fault! The mortgage officer messed up big time. Don't worry about the other couple... just focus on making sure you guys have a place to stay in. Praying all works out for you guys.

  8. I am so sorry this happened!The lenders have tightened up so much even though the rates are low. My mortgage Company refuses to take off the PMI even though I have been here 7 years and now have a 65% loan to value! It is infuriating.

    However.......I know something good will come from this, do you have any family that can help with a down payment for now?

    Art by Karena


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