Consumer complaint received 2015-11-04
Product: Mortgage — FHA mortgage
Issue: Settlement process and costs — 
Company: Prospect Mortgage, LLC (CO)

I as a consumer was not offered the opportunity to dispute because of Prospect Mortgage Company untimely response and their failure and incomplete response. The first untimely company response and end up no response are not acceptable. I 's like to reopen the CFPB Case # XXXX. 
Through numerous emails and discussions, we disclosed our credit history and financial situation to XXXX XXXX when we inquired about getting a mortgage on a property in XXXX, CO. He recommended looking in XXXX County. We fully disclosed and provided him with all the financial documents regarding our past bankruptcy and that we were attempting to have XXXX XXXX XXXX modify our mortgage and that we were delinquent on the mortgage. He pre-qualified us and sent numerous emails assuring us that we would get approved. XXXX XXXX stated that we would need to have an inspection and appraisal on the property in order to qualify for the mortgage. Because the property was a foreclosure property, in order to qualify for an FHA loan, XXXX XXXX told us that passing the inspection was very important. Because the property had not been maintained, he told us to hire someone to landscape the property in order to pass the FHA inspection by the tight deadline. To that end, we spent {$150.00} for landscaping on XX/XX/XXXX ; on XX/XX/XXXX we gave XXXX XXXX {$350.00} for the FHA inspection, and we provided our credit card number to XXXX XXXX to which he charged {$640.00} on XX/XX/XXXX for the appraisal of the property. We were told that the mortgage would be approved and that these costs were necessary to get the loan approved. We had also put down {$4000.00} in earnest money. 
On XX/XX/XXXX, XXXX XXXX sent an email stating that the mortgage did not get approved. I requested reimbursement for {$150.00} + {$350.00} + {$640.00} described above which had been spent as directed by XXXX XXXX as necessary expenses to get the loan approved. I spoke with XXXX XXXX and also sent emails. On the phone, XXXX XXXX stated he would reimburse me but that it would take some time. I also requested the return of earnest money at the same time. The earnest money was held for 120 days and finally returned XX/XX/XXXX. We were told by XXXX XXXX the realtor that the delay was due to XXXX XXXX, who was dishonest and told the seller that we had misrepresented our financial situation. XXXX XXXX was dishonest and tried to shift the blame to us. Given our bankruptcy and the financial stress, we could not afford to lose the earnest money and the costs incurred to get the loan which was ultimately denied. We were told that the sellers asked to use the appraisal and inspection reports when the sale did not go through because the loan was not approved. XXXX XXXX denied the sellers ' request to use the appraisal and inspection because it was Prospect Mortgage 's appraisal and inspection for which they had paid. However, XXXX XXXX and Prospect Mortgage never reimbursed us the costs [ {$150.00} + {$350.00} + {$640.00} ] to get the inspection and appraisal. Not surprisingly due to the stress, I suffered a XXXX on XX/XX/XXXX and was in the hospital ( XXXX, and XXXX ) until XX/XX/XXXX. My wife stayed with me every night at the hospitals until I was released. XXXX. We waited patiently for the earnest money ( which we really needed ) and received XX/XX/XXXX, but the reimbursement of the {$150.00} + {$350.00} + {$640.00} was never given to us despite assurances to us and representations to the seller by XXXX XXXX that they had paid for it.