So, recently a Realtor I know told me of a deal that fell through 2-days shy of closing due to an idiotic lending policy, or at least that was the bank’s excuse.
Apparently a buyer was in contract to purchase a piece of real estate as part of a short-sale. Granted, short-sales are not normal real estate transactions in that there are usually extra variables thrown into the deal which, more often than not, complicate things sometimes to the point of insanity.
So while the buyer is in contract to purchase a short-sale property, the geniuses at Bank of America all but approve the financing, perform an appraisal, urge the buyer to have the property inspected and surveyed, and then, two days before closing, they kill the deal in underwriting because, and get this, the buyer’s daughter, for whom the buyer receives child-support, is enrolled in a two-year college and not a four-year college. This means that Bank of America allowed child support, for a “child” who is over 18 years-old, to be counted as income on the loan application….
….and then decided that, really that’s not what they want to do…two days before closing? All the while, not returning many multiple phone calls, for weeks, from the agents on both sides of the deal who were inquiring as to the progress of the financing.
I should mention that from personal experience, about five years ago, I swore never to do business with Bank of America again after my own bad experiences.
If these big banks want to say they’re in the mortgage business, they should at least act like it by catching issues like this in the application process and at least TRY to be professional in the process by keeping the people in the loop.
I tend to think that I’m not the only person in America who has a long memory for this kind of bad behavior. Due to my experiences with Bank of America, Wells Fargo and to a lesser extent Citibank, I’m getting to the point where I want to find some small, local credit-union and move all my business there. Mortgages, credit cards, checking accounts, lines-of-credit, the works.
Maybe they value their customers more than the “too-big-to-fail-but-by-the-way-can-we-have-some-TARP-funds” banks.