Consumer complaint received 2015-05-19
Company: Guild Mortgage Company LLC
State: WA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Application, originator, mortgage broker

Complaint:
On XXXX XXXX, 2014, XXXX XXXX of Guid Mortgage issued a Pre Approval Notice ( attached ) to XXXX XXXX and XXXX XXXX. The Pre Approval Notice was issued to aid in purchasing a pre-existing or new home. The Pre Approval Notice was issued for a Loan Type of a FHA XXXX Fixed. This allowed XXXX XXXX and XXXX XXXX ( borrowers ) to purchase a new home to be constructed by XXXX XXXX XXXX XXXX. In mid XXXX 2014, the borrows were told by XXXX XXXX if Guild Mortgage Company, they did not qualify for a FHA 30 Year Fixed loan due to already having a FHA XXXX Fixed Loan on their existing home they were living in. The buyers were told they must sell they home to qualify for the new home being built. This was the XXXX the buyers had heard anything about having to sell there home to qualify for the one being built by XXXX XXXX. In fact XXXX XXXX XXXX had a policy of not building homes if the buyers had a home contingent upon selling. Therefore, the building would have never been initiated without a the Pre Approval Letter stating we qualified for a FHA 30 year Fixed loan. There were no pre conditions listed we would have to sell our existing home. We had given the title company {$14000.00} in earnest money to build the new home. If we attempted to terminate the contract we stood to loose the {$14000.00} and possibly more. We finally qualified ( with a couple of weeks or less before closing ) for a conventional loan and would have to carry both the old and new mortgages unless we were able to sell the existing home. In order to qualify for the conventional loan, we spent {$6000.00} from savings in an attempt to qualify and keep our automobile. This process did not work. So we had to sell our automobile back to the dealership for a {$8000.00} loss and we had to pay approximately {$5000.00} extra in closing costs so our debt ratio would satisfy the underwriters. We still have not sold our old home and have been paying an extra mortgage payment, utilities, etc.. We have lost an additional {$4200.00} dollars and are in the process of selling the home. To sell the home we had to lower the price to a point where we will be losing approximately {$18000.00} to close the deal. 

None of this would have taken place had Guild Mortgage Company and XXXX XXXX XXXX been honest and issued the correct Pre Approval. Recently, ( within two weeks ) I called and talked to XXXX XXXX and asked why he did not know we did not qualify for XXXX FHA loans. He informed he did know and the only reason he wrote the Pre Qualification Notice the way he did was due to XXXX XXXX of XXXX XXXX XXXX telling him she could sell the house anytime and therefore the loan type would not make a difference. We the buyers never agree nor knew of these dealings behind our backs. 

Please consider this most disgusting act committed against XXXX XXXX persons and take the appropriate actions you deem necessary to provide us with some help. Thank you for your time. If you need more information, feel free to contact us via telephone, email, or letter.

Company response to consumer: Closed with explanation