Complaint Category: None of the Above - Customer Service Complaint Issue
Complaint: Lost sale of home due to inadequate/incompetent loan officer at MCT.
We had a contract to sell our home to the *******. Their lender was MCT Credit Union on Nall Street, Port Neches. Closing date was April 5, 2013. After that date had passed **** no explanation as to why they did not meet their obligation to close, MCT requested another closing date of 4/26/13 (an additional three weeks) which we granted. After the second closing date had passed, there was not another closing date set but we were told survey had been ordered (which is final step for "set to close" process). Several days later we were told the ******* had backed out due to personal reasons. Our house had been off the market since mid-February due to the contract with the *******. ***********, loan office at MCT was handling paperwork. During the process, my husband had spoken with her and I had spoken with her. In each case, she was to get us an update on why we were not closing and was to call us back. Neither time did she return our calls. Our real estate agent also tried on several occasions to contact her for a status. ****** never answered her calls nor did she return them when our agent left messages. We had movers vacate our house on 4/2, based on the 4/5 closing date. We no longer have use of the house in Nederland as it is empty. We also have incurred additional mortgage payments, taxes, insurance, and utilities that should have ended on 4/5. The person handling their loan, in my opinion, is incompetent/incapable of getting the paperwork processed in a timely manner plus her failure to return phone calls is unacceptable in the capacity she serves. She should not have been allowed to continue handling the contract - it should have been referred to someone else that could meet the deadline set forth by the contract. We have been done an injustice and have lost valuable time for marketing the house due to the breach of contract and inadequacies. My husband and I are both retired and live at the lake. We have been unable to build our dream retirement home, awaiting the sale of the house in Nederland. This has postponed our plans indefinitely.
Business' Initial Response
The party making the claim is the seller.
Timeline is as follows:
February 20, 2013 Date of contract
March 4, 2013 Contract received from Realtor/Application made for FHA loan and disclosures sent to borrower
March 18, 2013 Disclosures & check for appraisal brought in by borrower - FHA Case # ordered
March 20, 2013 Received FHA case number
March 22, 2013 Title work received from the title company
April 1, 2013 FHA appraisal received
April 1-18, 2013 Ongoing requests for additional information and completeness of documentation required for FHA lender underwriting including but not limited to asset verification, employment verification and credit
April 10, 2013 Disposition of current home issues, lease agreement on current home executed
April 19, 2013 Submitted to underwriting after all correct documentation was accumulated
April 22, 2013 Received notice of 10 day underwriting turnaround from FHA lender
May 2, 2013 Received underwriting conditions including request for new appraisal on current home
May 3, 2013 Received appraisal on current home and sent to underwriter
May 7, 2013 Received "Clear to Close" from FHA lender and borrower was notified. Borrower stated that he had an unexpected issue and canceled closing
Typical turnaround time for FHA loans is from 45 - 60 days from date of receipt of contract and completed application. The length of time in processing depends on documents required by FHA lender underwriting. This file was complete in approximately 60 days, which is typical for a file of this intensity.
Our response to the seller was limited to the extent of requirements under the Privacy Act. We did inform them that the borrowers were kept up to date of the status and they could relay any information as they deemed necessary.
The complaint was filed prior to a meeting we had with the sellers. We have since met with them to address their concerns.
Consumer's Final Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Original closing date was 4/5/13 (which is omitted from above timeline). Second closing date was 4/26 (also excluded from timeline). The buyer's current home issues should not have entered into this transaction as we did NOT have a contingency contract. Our agent was told upfront that buyers did not have to sell their current home in order for this purchase to be completed. Obviously those issues delayed our closing date again and again. None of this was conveyed to us until we went to the MCT to voice our concerns after the deal was lost. We should have been told this so we could have made the decision whether or not to continue with the deal or nullify it and get our house back on the market. Also, why was the closing date set at 45 days if MCT knew FHA could take up to 60 days? That was misleading to us - even though they couldn't get the deal closed in 60 days either! In my opinion, MCT bears just as much responsibility in costing us this home sale as the buyers do! We've spent monies that should not have incurred had this happened in a timely manner plus we lost market time on our home due to this fiasco! We are now back where we were prior to this contract offer, which was the end of January.
Business' Final Response
In response to Case #XXXXXXXX:
The issue of the disposition of a current home is a factor in the underwriting of any home loan. In this case, the borrower was to lease their existing house. The file could not be submitted to underwriting without a lease agreement on the current home. The lease agreement was not executed by the borrowers until April 10th, which was 5 days after the initial closing date in the contract.
The closing date set in the contract was determined by the realtors, sellers and buyers. MCT made every effort to meet the initial closing date in the contract. However, due to the borrowers' lack of urgency to cooperate with documentation requirements in a timely manner, the loan process took longer than expected. Even after the contract closing date was extended, required documents were not provided on time. A clear to close was received once all documentation was approved by FHA underwriting; however, the buyers decided to cancel due to extenuating personal issues
Vice President Real Estate Lending
MCT CREDIT UNION
Complaint Resolution: BBB determined that despite the company's reasonable effort to address complaint issues, the consumer remained dissatisfied.