Consumer complaint received 2017-05-08
Company: PRIMELENDING, A PLAINSCAPITAL COMPANY
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
My husband and I have been renting here in Florida since   XXXX   XXXX   XXXX   and the plan was to purchase a home once our lease was coming to an end. We began our house hunting process in   XXXX   XXXX   with the expectation that we would be able to find a home, apply for mortgage and close prior to our lease termination of   XXXX   XXXX   XXXX  . We began by contacting a realtor that we had met here when looking for our rental in   XXXX  .  XXXX   XXXX  with  XXXX   XXXX . We found a home and since we trusted our realtor at that time we asked about mortgage lenders. Our realtor was happy to provide a list of lenders that she had used in the past with other clients.  One w as   XXXX   XXXX  . My husband and I contacted  XXXX   XXXX , the individual suggested. We were asked to submit the usual information beginning on   XXXX   XXXX   XXXX  , taxes, etc. to obtain pre-approval. In  XXXX , my husband and I met with our realtor after seeing multiple homes and decided to make an offer on a home. Now, we did not know at this time what our approval would be, however, our realtor promised us that IF WE WERE UNABLE TO OBTAIN financing we would receive our earnest money deposit back.   XXXX   XXXX   came and  XXXX  requested the same information that had been sent in   XXXX  . Our  AS IS  property contract ( which our realtor stated was a standard contract ) stated that the closing was to occur on or before   XXXX   XXXX   XXXX  . By   XXXX   XXXX  , my husband and I still had no denial or approval letter. We contacted our realtor who provided another mortgage person  XXXX   XXXX , with  Prime Lending. At this point, my husband and I just wanted to know whether we   qualified for the home or not. As suggested, we submitted our information to  XXXX  for her review to determine if we were able to qualify for this home or not.  XXXX  assured us that she would do what she could to close the house for us. We trusted that we were on the right path now that we had switched to using  XXXX  and  Prime Lending to provide our mortgage. Needless to say, week by week went b y with no approval and no denial. We were asked every week to submit additional information. Each week we were told that " we should know something by next Monday or Tuesday ''. There were addendums changing the date from   XXXX   XXXX   XXXX   to   XXXX   XXXX   XXXX   then back to   XXXX   XXXX   XXXX  . This went on from   XXXX   XXXX   until past the contract date of   XXXX   XXXX   XXXX  . We were told to get inspections, appraisal etc. We were told by  XXXX  that she was going to take our loan " to the board '' to get " special approval ''. The week of the contracted close date we still had no approval and no denial letter. We were contacted by our realtor and  XXXX  stating that my husband and I could rent the house from the sellers for a price that we were not told. We told them that we wanted to PURCHASE the house and not rent. Keep in mind that we STILL have not been told what amount, if any, we qualify for or that the loan could not be done. By this time, the contract had died, it was past   XXXX   XXXX  . I contacted  XXXX  on   XXXX   XXXX   and said that I did n't understand why the sellers could not have contributed to closing costs or changed the price of the house in order to make the deal. She said " I am at a cabin for the weekend, let me work on something and I will call  XXXX  tomorrow ''. Again, we still had no idea what we did or did not qualify for. On Monday,   XXXX   XXXX   I contacted  XXXX  and asked for an update. She stated that I needed to contact  XXXX . At this point, my husband and I are devastated, still have no idea what we qualify for and the idea of having to start this whole process over again is daunting. We asked our realtor to show us another house.  XXXX  states that she has talked to  XXXX  and  XXXX  has " worked out a deal with the sellers ''  ( to t he house that has now come and gone ). We meet at a different house that my husband and I had wanted to see and we were greeted by  XXXX   (  even though we did not feel that she had kept her oath to keep our best interest in mind ) who was carrying the hard copy of a " great deal '' that was previously emailed to us. This " great deal '' was a mortgage loan in our name for 75 % of the purchase price and seller second that we were to pay 9 % interest to seller with promise to use  Prime Lending to refinance (  {$10000.00} in  4-6 months ) AN D a balloon payment of {$55000.00} at end of 12 month if we could not refinance. When we met our realtor the evening of   XXXX   XXXX  , she stated that " you have to sign this, you 're still under contract because this is your financing and it 's a great deal ''. I informed her that we did not have to sign anything. These documents also included another extension which we did not sign. We then requested that we receive our {$3000.00} back since we never received any approval or denial letter. After all of this, I requested an approval or pre-qualify letter from  XXXX  on    XXXX   XXXX    since she had been " processing '' this loan since   XXXX   XXXX   supposedly. The final result, which took a lot of pleading, was that we would qualify for {$300000.00}. Which obviously does not qualify us for a home of {$370000.00}. My husband and I do not have a ton of money, and had we fallen victim to the pressure to sign this " great deal '' we would have lost everything that we own. We are sincerely apologetic to the sellers of this property as it is my understanding that they knew nothing of what we were going through. We would request that we receive half of the earnest money {$1500.00} and let the sellers have the other half as they were innocent victims of this craziness as well.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation