So heres the story.My wife has a loan that has been hell. The client has bad credit and yet he qualifies for an FHA loan. However he has to spend approximately 5k to clean up the debt. No problem because fortunately he had some cash. Problem solved, bring on the next issue. Next issue is that now his reserves aren’t high enough. Why aren’t they high enough? Because he spent the money cleaning up his debt. Underwriter digs in their heels but noooo problem because she solves that issue too. Problems are being solved now bring it on. Ok how about this.. Loan docs must be signed by today with all conditions met. Ohh by the way there’s this last minute judgement for 5400 that shows at title. Is this a deal breaker? Nope because we settle with the holder of the judgement for 3500 bucks to be paid on monday. The seller is going to pay him back a few bucks when the deal closes. This is because the seller just bought the house at auction a month ago and is going to make a killing. So here we sit. Talk about mess after mess after mess. However broker of all brokers (my wife) solves the problems no matter what they are! Until she gets the news. The news was this. The client was getting an FHA loan. There can be no transfer of title within 90 days of the time the home just sold. So since this was bought at auction a month ago the deals dead dead dead. Can’t do a damn thing. dead dead dead. Talk about a mess all because the underwriter didn’t catch it on the front end, the loan officer didn’t catch it, nobody caught it… till final underwriting. Now its caught and now its dead. Everyone gets screwed.
