Consumer complaint received 2022-07-01
Company: GUARANTEED RATE INC.
State: MN
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
I believe my financing and underwriting for the mortgage I was approved for was handled with gross negligence. I sold my home and was purchasing another home as my primary residence. After closing on the sale of my home I was living in a hotel waiting for the closing of the purchase on my new home. I was in constant communication with underwriting. My closing was scheduled to be at XXXX on XX/XX/XXXX. I find out at XXXX pm on XX/XX/XXXX my loan has been denied. The reason they say why my loan was denied was because my home was in forbearance for a short period of time, and I had been in communication about that for several weeks prior. This information had been disclosed early on in the loan process. II have attached all documents of communication. At no point does the forbearance come up. It just changed the payoff of my present mortgage. They lead me to believe that everything was moving along stautus quo and any additional information needed I provided them with in a timely manner. At no point was this an issue. 
XXXX hours before closing I find out my loan has been denied. I am living in a hotel with no place to go. 

On XXXX I had a discussion with my mortgage broker and I explained to him about the forbearance and if it would affect me. 

XX/XX/XXXX, I spoke with my mortgage broker about the possibility of not finding a house in time. I started looking at Apartments I found two places each average rent was XXXX a month plus XXXX dog feel and XXXX dollars for indoor parking. For XXXX months I would have paid XXXX. I was told by my mortgage broker not to rent because I would not be able to save more money. Right now, I am renting for the first XXXX months XXXX dollars, after that XXXX for the remainder of this year. So, in the present situation I will end up paying XXXX dollars. I could have saved XXXX dollars that I could have put down for a house later giving me a larger deposit. I did speak with my real estate agents about this option they were on board with what ever my decision would be they understood the struggle we were under. 
After the closing of my home on XX/XX/XXXX my Mortgage broker knew about the forbearance and said we will be able to still purchase this house. 
Because I did not go with the apartment choice and went after this house, I had to agree to wait till XXXX to close on my house. So, I had to put things in storage for a month. The XXXX  {$210.00}, and {$420.00} for that XXXX. Plus, I had rent a XXXX  XXXX  because the first one wasnt enough {$250.00} for that XXXX. 
I moved out of my XXXX home on XX/XX/XXXX and moved into the extended stay it cost me XXXX. Plus, I had to stay two more nights which was around {$85.00}. 
I had to run my business that I have out of the hotel room to move the business there it cost me {$100.00}. and {$180.00} to move it to my new house. 

On XX/XX/XXXX I was given a letter form the mortgage company telling me congratulations on purchasing your new home. The day before they asked for all my paystubs from XXXX and XXXX which I printed out for them and emailed them. They informed me the only thing that was holding up my closing was the paystubs and the XXXX I was on. Then on Friday the XXXX of XXXX they asked me for information on the large deposit I put into my account from my XXXX XXXX XXXX sale. I did send them the receipt for the XXXX statement. I did all this while focusing on my job at work. Then Monday came everything seemed fine I had no idea that anything was wrong up until the title company emailed me telling me that my time had been cancelled. My real estate agent called me telling me the deal had fallen through and that they are rushing to save everyone. The listing agent decided to come through and save everyone by purchasing the home. I would have to pay for the closing costs which was {$10000.00} and {$5000.00} for all the other cost. At that time, I was running out of choice because of the late cancelation my XXXX  were on the way so it would have cost me even more to have them stopped. I finally got a call from my mortgage broker tell me what happen at around XXXX. Even after this mess and I lost all this money he told me he was sorry about what had happened. I kept getting emails from the mortgage company tell me they need more papers from even after they denied my loan. 

Because I didnt get the mortgage in XXXX I missed out on the 4.375 % interest which would have made my load {$2000.00} a month. Now with interest rate going up to 6 % my payment is now a lot higher now. 



On XX/XX/XXXX I was given a letter form the mortgage company telling me congratulations on purchasing your new home. The day before they asked for all my paystubs from XXXX and XXXX which I printed out for them and emailed them. They informed me the only thing that was holding up my closing was the paystubs and the XXXX I was on. Then on Friday the XXXX of XXXX they asked me for information on the large deposit I put into my account from my XXXX XXXX XXXX sale. I did send them the receipt for the XXXX statement. I did all this while focusing on my job at work. Then Monday came everything seemed fine I had no idea that anything was wrong up until the title company emailed me telling me that my time had been cancelled. My real estate agent called me telling me the deal had fallen through and that they are rushing to save everyone. The listing agent decided to come through and save everyone by purchasing the home. I would have to pay for the closing costs which was {$10000.00} and {$5000.00} for all the other cost. At that time, I was running out of choice because of the late cancelation my XXXX  were on the way so it would have cost me even more to have them stopped. I finally got a call from my mortgage broker tell me what happen at around XXXX. Even after this mess and I lost all this money he told me he was sorry about what had happened. I kept getting emails from the mortgage company tell me they need more papers from even after they denied my loan. 

Because I didnt get the mortgage in XXXX I missed out on the 4.375 % interest which would have made my loan {$2000.00} a month. Now with interest rate going up to 6 % my payment is now a lot higher now.

Company response to consumer: Closed with monetary relief