Consumer complaint received 2018-01-03
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: NVR INC. (PA)

Here is a quick background on the case : 1. Purchaser, entered into a contract to build and purchase the home from XXXX XXXX XXXX XXXX referred to as Seller on XX/XX/XXXX.

2. The contract was for the purchase of the above home by the Purchaser for the purpose of primary residence, as indicated in the contract. 3. The P
urchaser worked diligently with the Lender, NVR Mortgage Finance , Inc., referred to as NVRM within the contract and secured a loan approval for the above purchase. NVRM and Seller are both owned by one larger corporate body. Therefore, as stipulated in the contract, the Purchaser had secured a loan approval 45 days within the date of the agreement signed on XX/XX/XXXX.

4. Purchaser worked with NVRM and responded to all information requests as well as met all conditions set forth for securing a loan on the above purchase.

5. Furthermore, Purchaser was transparent and kept NVRM and Seller informed of all status changes, specifically, the change in the employment starting XX/XX/XXXX During this time, the Purchaser certified their intent to occupy the above residence as their primary residence. NVRM requested a certification to this effect which was provided as well.

6. The Settlement Date communicated to Purchaser was XX/XX/XXXX in preparation for which, the Purchaser met with the Construction Project Manager on XX/XX/XXXX in good faith for a final walk-through of the home.

7. NVRM communicated to the Purchaser onXX/XX/XXXX that they would be unable to secure financing on the property as a primary residence due to change in employment.

Based on the above, the Purchaser has 2 options as explained by NVRM representative, on XX/XX/XXXX : O

ption 1 : Seek financing on the above property as an investment home which entails higher interest rate and substantially higher down payment requirement. This is not financially viable and would put severe financial stress on the Purchaser. Option 2 : Purchaser terminate the contract due to lack of financing as a primary residence and lose the ~ $ XXXX in hand money.

With reference to option 2, the Purchaser has been in compliance with the conditions set forth in the purchase agreement and has done everything in good faith to purchase the home. The inability of NVRM to secure a loan as a primary residence for the Purchaser does not constitute a breach of contract by the Purchaser.

As outlined in section 12 ( b ) of the contract : 12 ( b ) Default-Seller. We will be deemed to be in default upon Our failure ( 1 ) to complete Settlement as required hereunder ; or ( 2 ) to perform the obligations required to be performed by Us hereunder prior to Settlement, unless You are in default. Your sole and exclusive remedy if We default shall be to recover Your Deposit ( as defined in Paragraph 2 and to the extent previously paid to Us ) plus interest on Your Deposit at the legal rate since the date of Our breach or default, plus the sum of XXXX XXXX Dollars ( {$1000.00} ) as liquidated damages and not a penalty ( which sum is a reasonable estimate of actual damages which can not be forecasted with certainty ), in return for which You and We shall be automatically released from this Agreement and You would have no further rights to the Property.

Based on the facts of the case listed above, the Seller, its agent ( NVRM ) or its representatives were requested to cancel the contract and refund the hand money to Purchaser.

The Seller called they Purchaser after XXXX XXXX on XXXX and pressurized the seller to seek another mortgage after being denied mortgage from their lender of choice. This is predatory practice of sales as well as lending and intimidatory tactics deployed by the firm are deplorable.