Consumer complaint received 2022-09-15
Company: Groundwork Holdings LLC
State: MO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XX/XX/XXXX On XX/XX/XXXX, my fiance ( XXXX XXXX ) and I submitted a contract on a XXXX XXXX XXXX XXXX home at XXXX XXXX XXXX XXXX XXXX XXXX XXXX MO XXXX XXXX XXXX Villas is the subdivision name ). At the time we submitted the contract my fiance 's grandmother told us that she would provide a gift letter for the closing costs. 

We didn't realize at the time that XXXX XXXX had us sign a builder 's contract which gives XXXX the authority to 1 ) change dates for loan commitment 2 ) change home completion dates 3 ) proceed with construction if we couldn't get financing and most importantly 4 ) if we were turned down by our lender we had to go through XXXX 's lender XXXX. 

We provided both XXXX and XXXX with a letter from our initial lender which turned us down for insufficient closing funds after my fiance 's grandmother stated that she couldn't provide the gift letter or funds. 

We submitted a written letter, a mutual release and extensive email communication explaining our situation but we were encouraged by XXXX 's display representative who was not a realtor and XXXX representative XXXX XXXX to continue the process or we would be in default of the contract terms. 

The XXXX display representative glossed over the contract and did not provide us with a hard copy until after we had docusigned every element of the contract. We were turned down in writing by XXXX Mortgage as well as verbally by XXXX Mortgage but XXXX insisted that we continue the process or we would also have to forfeit {$6000.00} of our lot deposit. 

Under the terms of the builder 's contract if our bank couldn't get us the loan then we had to go through XXXX. The result is that with a XXXX XXXX of XXXX and {$270.00} in assets, XXXX approved us for a {$310000.00} loan. 

We never signed a finance contingency waiver and our loan commitment date was XX/XX/XXXX but our agent submitted an amendment to give XXXX until XX/XX/XXXX to extend the loan commitment time but XXXX would not sign the amendment or the mutual release asking for the return of {$3000.00} of the {$5000.00} that we submitted for the lot deposit. 

Yesterday XXXX said that we got loan commitment and that unless we go through with the contract that they will sue us as well as charge us almost {$650.00} for every day that we don't close. 

When we entered into the contract we had every intention of closing on the house but our loss of closing costs and inability to get approved by XXXX has made no difference to XXXX. They are going by XXXX assessment of our ability to get the funding to close. We feel this is an extreme case of predatory lending and we would like XXXX investigated for this because we are sure that this is not the first time that they have done this. Thank you. 





Update XX/XX/XXXX : Purchasers maintain a strong complaint against XXXX, and would like for them to continue to be investigated. ( The matter with XXXX homes has been settled )

Company public response: Company disputes the facts presented in the complaint
Company response to consumer: Closed with explanation