Consumer complaint received 2019-10-30
Company: GUARANTEED RATE INC.
State: NJ
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In XXXX, I was issued an updated ( my previous, with same lender, had expired ) preapproval letter from Guaranteed Rate, Inc. through lender XXXX XXXX. With that preapproval letter I came across a fixer upper, I had previously offered on, and resubmitted a new offer, in XXXX. After submitting the offer, it was accepted and the sales contract was presented to the Guaranteed Rate, Inc. representative, XXXX XXXX. I went through attorney review assuming everything was moving in the right direction, met with contractors, conducted a feasibility report ( {$300.00} ) and submitted those findings to the representative, XXXX XXXX who had even asked us, previously, the contractors name and license #. As was his usual it took a while for him to respond ; so long in fact that I sought out another lender who let me know that based on what he was seeing, the repair costs plus the purchase price exceeded what I was approved for and he could not understand why I was even given a preapproval for the amount I was preapproved for anyway. After finally getting a response from the Guaranteed Rate, Inc. representative XXXX XXXX, he told me that the repair costs were too high and the loan would not be approved. Fine with that, I requested a denial letter to submit to the seller. Well within the 30 days, to avoid losing my earnest money of {$1000.00}, only to be strung along with, you have my word, Im working on it, it will take a few days to process and on and on. Fast forward to XXXX XXXX ( this has been ongoing since XXXX ) when XXXX XXXX called me a liar, telling me that he told me, my brokers assistant and my attorney to pump the brakes on this, from the beginning, and we went ahead anyhow. I can not figure out for the life of me why I, along with my broker and attorney would move forward on a property that there was no loan backing to fund. Its not like I had the $ XXXX sitting in an account somewhere to make it happen without a lender. I have spoken to both the brokers and the attorney who undoubtedly deny ever being told by XXXX XXXX to pump the brakes on anything. 

To date, the seller is requesting a letter from the lender to cancel the contract. After, once again, not hearing from XXXX XXXX, I reached out to Guaranteed Rates, Inc. XXXX   office and a XXXX XXXX took on the issue. After saying he could not legally issue a letter because nothing had been submitted to them from XXXX XXXX regarding any loan amount he connected me to a XXXX XXXX. My wife and I spoke to XXXX XXXX who confirmed that although their representative XXXX XXXX issued the preapproval letter it does not guarantee a loan, which I understand applies to all preapproval letters, and he nor Guaranteed Rate, Inc. could issue a denial letter to the seller. He implied that XXXX XXXX would be dealt with internally and no information could be given to us regarding what disciplinary measures will be taken. In addition, supervisor, XXXX XXXX now refers to all verbal correspondence with XXXX XXXX as hearsay and has opted to take his word over those of numerous others who ave nothing to gain from not telling the truth. The bottom line remains there is no letter to submit to the seller and we are out {$1300.00} of earnest money and a feasibility report, not to mention the time spent  driving back and forth to the property an hour and a half away from my current residence. My lapse in judgement, in this process, was not finding another lender, from the beginning.

Company response to consumer: Closed with explanation