Consumer complaint received 2024-06-15
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: LAND HOME FINANCIAL SERVICES (IN)

I applied for a mortgage with Landhome Financial Services Inc. I was pre approved through the automated services with XXXX XXXX a branch manager. From the very beginning I was ONLY interested in the down payment assistance programs. This was a relocation from IXXXX to XXXX and I am self employed. I found a new build that I was interested in with XXXX who also happens to have their own mortgage company, title company, insurance company etc. I decided to continue working with Landhome instead of jumping ship & going directly through the builder because my credit had already been pulled by Landhome and they already knew the ins & outs of my file vs starting over fresh with a new lender. We went under contract on XX/XX/XXXX and from the lenders standpoint everything was going as planned. Closing day was set for XX/XX/XXXX. Around the midpoint is when the lender ( landhome financial servicesXXXX XXXX XXXX started giving myself, my realtor and XXXX the run around. She started requesting more financial documents from myself ( bank statements, proof my amended returns were filed & accepted by IRS ) all of which I returned to her the same day she asked. She stalled everyone out on what she was up against with her underwriters She finally sent an email on Tuesday XX/XX/XXXX the day after the original closing date to finally update XXXX & my realtor on what was holding up the clear to close. She stated she was confident she could close the file by that Friday, XX/XX/XXXX. Only for me to be denied for a supposedly income issue, however she told everyone it was because my amended transcripts hadn't updated fully with the IRS. She did not send a denial letter until that Monday, XX/XX/XXXX. When I went to request the earnest funds from XXXX my sales consultant XXXX XXXX started to give me the run around acting as if he hadn't received the denial letter yet from Landhome which he had gotten already. He then stated he was starting the process for return of earnest after I had to practically beg him. I also reached out to everyone from XXXX that I was in contact with during the loan process to ask them who I could speak to other then him to get my earnest back. XXXX then urged me to apply directly through XXXX and said that if I was denied then they would refund the earnest. He told my realtor XXXX XXXX & myself this during two separate convos. I told him I did not want to end up in the same predicament, but I would do it simply to receive my funds back. I applied through XXXXXXXX XXXX  around XX/XX/XXXX & uploaded all the documents. I spoke with the lender over the phone & he asked about my businesses. He said he would ask another colleague and get back with me about which businesses income would be sustainableto use. At this time they pulled my credit report as well. I never heard anything back. Never received anything about them pulling my credit. Never recieved a denial! Around this time I then recieved a call from my realtor saying they were sending documents for me to sign to be released from the home I went under contract with on XX/XX/XXXX so they could put it back on the market. I signed & I asked XXXX if he'd be able to send the earnest to a different address. He didn't reply. A couple days later I asked a question about a home & he replied. I didn't reach back out to XXXX until day 30 of being released from the home thinking my earnest was in process of being returned since I was essentially denied by XXXX as well which I wasnt told this until my realtor spoke with XXXX on my behalf. I checked in with XXXX to ask about the earnest funds. He didn't respond. I asked later the same day & this is when he stated what I signed was to be released from the home, but they were not returning the funds because Landhome breached the 30 day contract!!!! He told me the only way to utilize the funds would be to apply through another lender and be fully pre approved within 60 days.