Consumer complaint received 2021-04-16 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: NJ LENDERS CORP
State: NJ

Complaint narrative:
In late XXXX we began planning for a major home renovation to the home we own in XXXX, NJ. To finance the renovation, we contacted XXXX XXXX at NJ Lenders Corp, in XXXX XXXX, NJ. He suggested that we use a FHA 203 ( k ) loan for financing. Early on, things progressed as we expected, and we were told that our loan was nearly ready. Shortly after that, we found out that, based on our building plans, we would need to apply for a variance from our town. That was in XXXX, just prior to everyone going on lockdown due to COVID-19. We relayed this information to NJ Lenders and they suggested withdrawing our loan application until we were able to attend the variance hearing, which we agreed to do. 

We finally received our hearing on XX/XX/XXXX, and were granted approval. The same day we received approval, we reached out NJ Lenders and told them we were ready to proceed with the loan process. Over a week later, we heard back, and were told that a new loan application process would be begin a week after that. Finally on XX/XX/XXXX, we were told that a new loan application process was started and we submitted all of the requested documents in a timely manner. 

After going nearly a month without any updates from NJ Lenders, we reached out again on XX/XX/XXXX, asking for the status. We were then given an estimate that it would be 45 days to close the loan, which would be XX/XX/XXXX. 
We contacted NJ Lenders again on XX/XX/XXXX, asking how the loan was progressing, and after failing to receive a response, reached out once more on XX/XX/XXXX. We did finally receive a response indicating that NJ Lenders was waiting for an appraisal to finish, despite the appraiser having come to our house on XX/XX/XXXX. We were told that the appraisal report would be completed by the end of that week. And we were also told that it would be an estimated 45 days from when they received the appraisal report that we could close. That date would be XX/XX/XXXX, a month after the initial estimated date. 

As we neared the new estimated closing date, we reached out again after not receiving any updates. At this point, we informed that after looking into our application, NJ Lenders had left a number off of the documents they sent to HUD, and that the application had not been moving forward due to that oversight. Because the application had already been submitted to HUD incorrectly, the entire application process had to be started from scratch. The president of NJ Lenders, XXXX XXXX, ensured us on XX/XX/XXXX, that a commitment letter would be sent to us to sign by XX/XX/XXXX. 

That day passed without us receiving the commitment, and we reached out to Mr XXXX again on XX/XX/XXXX, but received no reply. We did manage to speak to XXXX XXXX that day, and we finally received, signed, and returned the commitment on XX/XX/XXXX. 

At this point we were informed that NJ Lenders was waiting for HUD to cancel the case number for the incorrectly submitted earlier application, and that our new application could not be submitted until this was completed. Finally, on XX/XX/XXXX, we were informed by Ms XXXX that the old case number was canceled and that we would likely be able to close within ten business days. 

We reached out again on XX/XX/XXXX, to ask if we were on track to close within the estimated ten business days, and were told by Ms XXXX that she saw no reason we wouldn't be able to. Finally, on XX/XX/XXXX, we received the closing documents, nearly two months after the initial estimated date of XX/XX/XXXX. We were told that we officially closed on XX/XX/XXXX. 

Our expectation was that after closing, we would be able to begin our renovation, so we relayed this information to our our contractor. He began working on XX/XX/XXXX, at which point we reached out to NJ Lenders inquiring about when he would be able to receive his first disbursement from the loan. We were told on XX/XX/XXXX, that our loan was in " post-closing '' and being transferred, and that we would receive a notification once the transfer was complete, and that our contractor could be paid at that point.

Days passed and we never received confirmation that our loan had transferred to another bank. Our contractor was demanding payment and even asked if we could pay the first disbursement out-of-pocket, which we were unable to do. We continued to reach out to NJ Lenders on the status of the transfer and received minimal communication. Only after writing negative reviews on internet sites, did we finally receive communication from Ms XXXX. She was disappointed in the negative reviews, telling us that they would reflect badly on her personally. As for the first disbursement, she said they would go outside of their standard practices, and NJ Lenders would make the disbursement, rather than the bank the loan would be transferred to. 

We did receive the first disbursement on XX/XX/XXXX, and our contractor was able to be paid. At this point, we have still not received any updates regarding the transfer of our loan, despite multiple attempts to reach NJ Lenders. Work is proceeding on our renovation, and we know that soon the contractor will be looking for the next disbursement, but at this point, we feel that we'll need to go through the same ordeal to get it to him. 

This entire process has been conducted in an unprofessional manner, and action on our loan has only taken place after we've made multiple attempts to contact people at NJ Lenders, including the president of the company. We have great concerns about whether our loan will ever actually be fully granted.

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with explanation