Consumer complaint received 2016-11-30
Company: Prospect Mortgage, LLC
State: IN
Product: Mortgage
Sub-product: FHA mortgage
Issue: Application, originator, mortgage broker

Complaint:
I sold my house to a buyer using Prospect Mortgage in XXXX as their lender. Prospect Mortgage 's XXXX, XXXX, is the person responsible for handling the loan. My buyer was also planning to use an XXXX down payment assistance program to help pay the down payment. My buyer gave her offer on XX/XX/XXXX, and I accepted the same day. We scheduled close for XX/XX/XXXX ; on XX/XX/XXXX, we found out the buyer had something pop up on her credit report that would cause a delay in close because it would prevent her from using the down payment assistance. After a couple of weeks of trying to get what we were told was an erroneous charge off her credit record, they decided to instead forgo using the down payment assistance and she was going to use her IRA to get funds to close. Prospect Mortgage, her lender, scheduled close for XX/XX/XXXX. By Wednesday XX/XX/XXXX we still did not have clear to close and were told by the mortgage company that they were working on conditions with the underwriters but would try to have clear to close by XX/XX/XXXX. On XX/XX/XXXX, we didn ; t have clear to close yet, but somehow the lender had given the buyer the required disclosures and had her sign off them as a " workaround '' even though they were still working through conditions. On Monday, XX/XX/XXXX, the lender ( XXXX ) emailed myself and my agent and my buyers agent asking if the repairs requested on the appraisal had been completed so they could get a rush re-appraisal. No one had ever told me ( the seller ) that I had to have repairs done, no one ever told my agent either. Less than XXXX hours before we were scheduled to close, we find this out ... I scramble to get a XXXX out to my house, and have now paid {$300.00} to have the repairs made. 
Today is XX/XX/XXXX. The lender had close scheduled for XXXX, and did n't bother to cancel it or tell anyone it was n't happening. Fortunately my realtor had the foresight to do so ; we moved it to XX/XX/XXXX. XXXX did n't respond to any emails this morning to tell anyone what was happening. Around XXXX this afternoon we received an email from XXXX at XXXX stating that the re-appraisal could n't be ordered because he did n't have the FHA case information transferred from a previous buyer I had lost. I would love to know how he did n't know until the day we are supposed to close that he is missing critical information! This was XXXX of the first things he should have done when my buyer made her offer and I accepted - how it is possible that both did n't happen AND then they did n't notice until the close date blows my mind. I have no idea now if we can close on Friday, and I do n't think XXXX has any idea either. 

This transaction has been a disaster and I am about to lose the new home I purchased because the people at XXXX do not know how to run their business appropriately. XXXX families are adversely affected by the absolutely terrible handling of this process - it 's a domino transaction and all the people affected will not be spending XXXX in the new homes they had planned to.

Company response to consumer: Closed with explanation