Location: Virginia - Northern Virginia
Submitted 07/30/08 11:29 PM

Q. My super jumbo loan was approved by a Bank with a 10% down. We went to the Title company there we learned that the loan cannot be closed as the bank cammot find a mortgage insurer for this loan. What legal recourses I have in this situation?

 

Answer #1
Submitted 07/31/08 12:22 AM
Paula Swayne, Realtor-Land Park, East Sac & Curtis Park -Dunniga (Dunnigan, Realtors, Sacramento   (916) 425-9715): Real Estate Agent in Sacramento, CA Paula Swayne, Realtor-Land Park, East Sac & Curtis Park -Dunniga (Dunnigan, Realtors, Sacramento (916) 425-9715)
Real Estate Agent
Sacramento, CA

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A.

Jumbo loans are a  challenge, but your lender should have been keeping you updated on what was happening with your loan. I would be looking for another broker.

Answer #2
Submitted 07/31/08 08:20 AM
Jeff Glick (BCHloans): Mortgage and Lending in Dunwoody, GA Jeff Glick (BCHloans)
Mortgage and Lending
Dunwoody, GA

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A.

I do not think you have recourse, I agree with Paula.  

Depending on the specifics I have a lender that will do an 80/10/10; meaning you would have a 10 % 2nd mortgage.

Well, good luck.  Sorry for your experience - it makes our industry look bad.

Answer #3
Submitted 07/31/08 09:37 AM
Nathan Goodman: Real Estate Agent in Bozeman, MT Nathan Goodman
Real Estate Agent
Bozeman, MT

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A.

First off a 80/101/10 would be 100% financing, and that doesn't exsist anymore.  Seconed no compinaies are doing 2nd postion loans because of the risk and high defaults right now.  They would have to be the first loan provider to do a 2nd...  As for legal recourse, you have none...  Your lender screwed up royally, I can't believe you were at the close with title when you found out.  That broker obviously has no clue what has been going on in the market.  Only FHA will go above 90% anymore and if you truely have a jumbo outside the new FHA loan limits then there will not be much you can do.  What is your loan amount...?

Answer #4
Submitted 07/31/08 09:47 AM
Paula Swayne, Realtor-Land Park, East Sac & Curtis Park -Dunniga (Dunnigan, Realtors, Sacramento   (916) 425-9715): Real Estate Agent in Sacramento, CA Paula Swayne, Realtor-Land Park, East Sac & Curtis Park -Dunniga (Dunnigan, Realtors, Sacramento (916) 425-9715)
Real Estate Agent
Sacramento, CA

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A.

Nathan,
My understanding of the loan Jeff was speaking of was 80% first, 10% second and 10% down...not a 100% loan.  Are you certain that no lenders are doing seconds?  I haven't heard anything like that.

Answer #5
Submitted 07/31/08 10:01 AM
Jeff Glick (BCHloans): Mortgage and Lending in Dunwoody, GA Jeff Glick (BCHloans)
Mortgage and Lending
Dunwoody, GA

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A.

Thanks Paula for reading closely, 

80/10/10 is 80% first, 10% 2nd, 10% down.

not sure about you and MT, but I do have access to 2nds (locally and Nationally)and they do go to 90% CLTV.

 

Answer #6
Submitted 07/31/08 12:14 PM
Sharon Richardson, Insurance Agent (Bowers Insurance Group): Services for Real Estate Pros in Roswell, GA Sharon Richardson, Insurance Agent (Bowers Insurance Group)
Services for Real Estate Pros
Roswell, GA

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A.

Jeff, you are correct.  There are still companies willing to provide a second mortgage up to 90% LTV. 

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