Consumer complaint received 2024-04-24
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: United Shore Financial Services, LLC (GA)

As a licensed real estate professional, I had the privilege of presenting property located at XXXX XXXX XXXX, XXXX, GA, to several clients. Despite their decision not to pursue an offer on the property, I found myself strongly drawn to it. In a deeply personal conviction, I felt guided by a profound sense that this property was meant for me. 

After consulting with both colleagues and friends, I was directed to XXXX XXXX, a highly regarded professional in the industry. Initially, under the impression of being referred directly to a lender. I later learned that XXXX XXXX XXXX operates as a broker at XXXX XXXX XXXXXXXX. 

During my discussions with XXXX XXXX XXXX, I emphasized the profound significance of my faith and reliance on divine guidance in relation to this particular property. Despite my unwavering conviction, I recognized as a professional realtor the importance of ensuring my eligibility before proceeding with an offer. 
Subsequently, I submitted an offer in line with the pre-approval conditions established in XX/XX/XXXX. Upon immediate acceptance of my offer, I commenced fulfilling the stipulated conditions. The initial closing was scheduled for XX/XX/XXXX, during which I pursued to secure a favorable rate by purchasing down the interest to receive the lock rate at 5.49 %. 
However, just two days before the closing, the broker, XXXX XXXX, unexpectedly added a new condition, requiring the removal of certain comments from my credit report. 

When I asked why I hadn't been informed of this requirement originally upon my pre-approval, XXXX XXXX mentioned she thought she had mentioned it to me, but in fact, she hadn't. This unforeseen demand sparked a series of challenges. 

Despite my efforts to address these conditions promptly, my credit score declined as the lender continued to consistantly pull my credit leading to a postponement of the closing. Following subsequent attempts to rectify the situation, the closing was rescheduled for XX/XX/XXXX, necessitating a further rate buy-down and higher interest rate from what I expected. However, due to the temporary decline in my creditworthiness, I did not qualify for the revised terms. Fortunately, my credit score subsequently recovered briefly, leading to the scheduling of another closing on XX/XX/XXXX, accompanied by another substantial buy-down. 

Following the failure to close on XX/XX/XXXX, a subsequent closing date was scheduled for XX/XX/XXXX, during which the lender confirmed that all conditions had been satisfied. 
However, despite this assurance, the lender continued to impose additional conditions right up until the final hours before closing. Regrettably, these last-minute additions caused the rate lock to expire once again, this time at XXXX XXXX XXXX Throughout my lifetime, I have bought numerous homes and assisted countless individuals and families in their own home purchases, yet I have never encountered such significant resistance and lack of consideration as experienced in this instance. I received 10-13 different disclosures. 

Throughout this process, I sought clarity regarding the rationale behind the escalating buy-down amounts but remained unsatisfied with the explanations provided. 
Each time the broker stated that they were going to escalate the issues I brought to their attention, the broker dragged out the process with no communication and with no concern about my rate lock expiring. 

Furthermore, an unforeseen condition at the beginning of this process surfaced, mandating the completion of my XXXX taxes, despite my usual practice of filing for an extension. This unexpected obligation imposed an unanticipated financial strain, exacerbated by the FHA lender 's demand for the full payment of my tax liability at closing. The taxes were not due at that time with tax time not until a few months later. The underwriter was determined to make this process difficult for me. 

This requirement contradicted FHA guidelines, which stipulate payment solely for only back taxes as the requirement. In response, I reached out to FHA via a recorded line with a case number, where the representative affirmed that only back taxes are due. Notably, I did owe a small amount of back taxes that I was not aware of for XXXX and XXXX, but upon notification from IRS 4506T it was noted to pay that at closing. Because the newest return of XXXX was not due at that time and was unexpected. 

Despite my attempts to negotiate alternative arrangements with the lender, such as installments or a partial settlement ; they remained unwilling to follow FHA guidelines. I spoke with a tax attorney who also stated that my taxes were not due at time of my closing, and was concerned why the underwriter kept pressing that. No professional understood why that happened. 

My CPA was perturbed with the underwriter due to being inexperienced in analyzing my tax return and trying to compare lines that were unrelated to each other. My CPA had to take time out of her extremely busy schedule ( tax season ) to educate the underwriter by writing letters and sending IRS Publications. This lack of flexibility further exacerbated the situation. Subsequent closing dates were set and delayed, with minimal communication from the lender, and I experienced mounting frustration and distress due to unfair mortgage practices.

Throughout this ordeal, I feel that I have been inadequately informed and supported.

Being a senior citizen this lead to significant emotional and physical distress. In addition my two businesses suffering tremendously. I believe I am a victim of unfair mortgage practices. There is a clear need for accountability and transparency in this process to prevent similar experiences for others in the future.