Bank called daughters credit union to cancel loan

[Zeke]

^^^Good question but the bank could have asked how and when she would cover her offer. She must have mentioned the CU or they couldn't have called. Maybe lesson learned.

Still, I have a friend who has loaned hard money for 40 years. He has his own capital and can write a check for just about anything less than 10 million. And that was the last I knew and it came from him. Who really knows how much he has? His daughter might. Not only is she IRS, she's the heir.

[vonsmog]

My wife and I got a foreclosed home once and the bank that owned it, wanted to write the loan for us, this way they still could make some money on our payments to them. So maybe that is what this bank wanted to do. But more than likely they sold it to one of their buddies.

[pwd72s]

Originally Posted by svandamme

how the hell would that bank have known where your daughter had a request for a loan???
Don't you guys have any kind of consumer privacy laws in the US?

Here in Europe none of this would be possible or legal.

Just guessing...but the daughter probably told them she had the credit @ her credit union...when the bank asked her to prove her bid was legit.

[flipper35]

The bank had the houses in foreclosure so the CU called the bank for further details. The bank then wrote a mortgage for one of the bank president's friends after telling the CU they would not be able to process a loan on the house.

[mthomas58]

So it would appear that the daughter made an offer to buy the foreclosed property from the bank contingent on her ability to obtain financing from her lender. Had the Bank accepted her offer and had a contract been signed? If not, the Bank is under no obligation to close on the sale. If a contract was signed what were the terms? How long until closing, how much of a loan did she need to qualify for an by what time and what outs did Buyer and Seller have? If not under contract, and the Bank had a better offer, no foul.

[masraum]

Originally Posted by flipper35

The bank had the houses in foreclosure so the CU called the bank for further details. The bank then wrote a mortgage for one of the bank president's friends after telling the CU they would not be able to process a loan on the house.

Seems like that should be illegal. At the very least, highly unethical. You'd almost want to get one of those investigative news groups to look into it to cause some publicity for the bank that might be bad for the folks that were directly involved.

[cabmandone]

Originally Posted by flipper35

What would you all do?

According to our real estate agent:

My daughter made an offer on a house that had been foreclosed on. During the offer the bank that had the house called her credit union and told the credit union not to process the loan because it isn't worth it. The bank then accepted an offer from another party since.

It is fine to reject an offer, but to call her credit union to tell them to deny the loan is a dick move to me.

Doubt anything could be done but it sure seems like a line has been crossed here.

Had to vent either way, thanks for listening.

Google reviews is a pretty strong tool. The problem I'm seeing is, no mention of an accepted contract. Why would the bank that owns the property call you daughter's bank if there was no accepted contract? Why would they even have to tell the bank not to process? Makes no sense.

[RANDY P]

Get the official reason for the turndown. Examine it closely.

File a complaint with the local Dept of Fin. Institutions against the bank that turned her down. They had no good grounds to do so. Denying a loan based on no solid reasoning (IE credit score, failed appraisal, not enough income) could very well be construed as discrimination.

I would also hammer the RE agent, their broker and call the Dept of RE as well. I would make sure EVERYBODY with state authority got an email and phone call.

Everyone should get hurt, bad. ****bags.

rjp

[flipper35]

Originally Posted by cabmandone

Google reviews is a pretty strong tool.

Not for small town banks like this. The town is really not for wealthy people. 900 people, no real industry in the entire county and sky high taxes.

[flipper35]

Originally Posted by RANDY P

Get the official reason for the turndown. Examine it closely.

File a complaint with the local Dept of Fin. Institutions against the bank that turned her down. They had no good grounds to do so. Denying a loan based on no solid reasoning (IE credit score, failed appraisal, not enough income) could very well be construed as discrimination.

I would also hammer the RE agent, their broker and call the Dept of RE as well. I would make sure EVERYBODY with state authority got an email and phone call.

Everyone should get hurt, bad. ****bags.

rjp

The bank told the CU she would not qualify. Long over now, she is looking at buying mom and dad's house at FMV. Mom has to go to a memory care facility soon and he will need some live in help.

[Steve Carlton]

I'm no expert, but this sounds actionable.

[cabmandone]

Originally Posted by flipper35

Not for small town banks like this. The town is really not for wealthy people. 900 people, no real industry in the entire county and sky high taxes.

The thing that doesn't add up for me is why the bank that owns the home called your daughter's lender at all if there was no accepted contract? All the bank had to do was decline the offer and move forward with another. If the bank accepted your daughter's offer and then did this, and you can prove it, yeah you've got a case. In most cases the seller can't unilaterally pull out of a contract without cause.

[RANDY P]

Originally Posted by flipper35

The bank told the CU she would not qualify. Long over now, she is looking at buying mom and dad's house at FMV. Mom has to go to a memory care facility soon and he will need some live in help.

Well, that's not for the CU and the Bank to negotiate and the CU is responsible for determining that- it's their money not the local bank. I would kill them if I found out that they denied my application not on an objective fact (did not meet written guidelines) but on a discussion with an unrelated 3rd party.


rjp

[cabmandone]

Originally Posted by flipper35

The bank told the CU she would not qualify.

How would the bank know whether she'd qualify or not? The bank that owns the home would have no idea of her finances or certainly shouldn't beyond a standard letter of approval from her bank.

[wildthing]

Old thread resurrected by someone with 13 posts. Hmmm.

[RANDY P]

Homebuyers- this is one reason you do not give too much information out about your approval to the selling party. It's no one's business how or what the terms of your approval are. They will judge your offer on that.

All they need to know is you qualify.

PS I'll admit it, I've gone as far as telling everyone I'm doing 50% down and a stupid low rate to keep everyone way. All that matters is what happens at closing.

rjp

[flipper35]

Again, there was no contract yet. The bank misrepresented the condition of the house and told the CU, when the CU called, that she (or anyone else really) would not qualify for a loan.

The bank then sold a mortgage to the friend.

This is all there is to it.

[cabmandone]

Originally Posted by wildthing

Old thread resurrected by someone with 13 posts. Hmmm.

Dammit!! they got me again.

[A930Rocket]

Originally Posted by wildthing

Old thread resurrected by someone with 13 posts. Hmmm.

A bot?

[cabmandone]