mortgage problem

Posted by neurotic (67.27.176.210) on October 13, 2003 at 23:59:10:

I have been trying to refinance my mortgage for several months now. I have run into countless problems. I actually thought the nightmare was over during the last week of September. I went to the title company to close, but upon arrival I was told that the documents were not ready. I had two concerns. First, was something wrong with the approval of my new loan. I was assured that nothing was wrong and it was simply a matter of understaffing on the part of both the lender and the title company due to several illnesses. My second concern was being 30 days late on my current mortgage. I had been counting on not paying August or September's payment because my mortgage copmpany told me that I would not need to. With my closing being pushed back a few more days I was running dangerously close to being 30 days late. I was again told to relax and that we would close be the end of the month (September) and that there would be no negative effects on myy credit. I went back to the title company the following week to close and again, no documents. This time it was finally admitted that there was a problem with the loan. For some reason they had qualified me based on me making an income that is $1000 a month greater than what I actually make. I don't now how this occurred. I absolutely did not misstate my income to them. I guess at the last minute they realized their mistake and denied the loan. I took time off of work on two separate occaisions, paid for an appraisal, and of course my current mortgage went 30 days late. I brought the mortgage current as soon as I could (about 10 days later). If I had known from the outset that my income was insufficient, I could have gotten a second job and waited a few months and been able to get a mortgage an still have flawless credit. My credit score dropped by well over 100 points with this one blemish. I realize now that it was foolish on my part to not keep my payments current, but at the same time I was told by professionals in whom I trusted that it wasn't necessary given that closing on a new mortgage was emminent. Is there anyone I can go to now that will refinance my mortgage and have it be beneficial to me? And do I have any grounds to pursue legal action against either the prospective lender for their major underwriting blunder or the mortgage company for giving bad and costly advice? Or both for failing to be open and honest with me once they realized they had made a mistake?

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