Just need to vent! (poor financial support for land)

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The easiest way for me to vent is for me to let you read the letter I have sent to the president of a bank in my area.

Sir:

In January, I contacted one of your loan officers who, as a Realtor, I have dealt with, concerning doing a loan for me on a home with 13 acres we were buying in North Henderson, IL. I did ask if it would be a problem doing a loan on property located in the western part of the state. I was told no. (We were putting down 20% on a $95,000.00 property)

The loan was approved immediately and we were scheduled to close on June 29th. THAT IS TODAY! In February, I asked if the appraisal came in and what was it. I was told that it was in but had not been looked at. Since I had heard nothing through all these months, I assumed, as most that everything was fine. IT WAS NOT! The appraisal came in under purchase price and now, even with putting down 20%, we would have to pay PMI. As it turns out, the appraiser your bank sent out is from out of the area and has been know to appriase the wrong home and say it doesn't matter, all homes are the same. I fought to get another local appraiser. (The new apprasial is for $95,000)

In addition, about 6 weeks ago, I was told we needed an environmental study and to contact the county. I did, and they said they did not know what I was talking about. I then called the processor and told her, gave her the name of the person at the county office. She said she did not know what exactly the loan officer was asking for and she would check into it. Did not hear anything further, so, like most, I figured someone was following throught. WAS I WRONG!

On Monday, June 25, I am told FannieMae requires an environmental study of the property because it is more than 2 acres. I called the Realtors in the are we are moving to, this is rural farm country, and no one has ever heard of this. They sell millions of dollars worth of farmland and never do these. I also spoke with the president of one of the banks out there and he had never heard of it.

So, now I am told that there are four companies that can do this . they are all in this area! Does me no good. I call out to the area we are moving and locate a company. They say this is going to cost $2,000 and will take about 3 weeks to complete. TALK ABOUT BEING UPSET!!. I call my loan officer, by this time I am in tears, literally. He tries to talk to whomever about this but the answer comes back that FannieMae requires this.

I called FannieMae. They told me it is the underwriters who drive the transactions and that they follow guidelines. Not regulations, guidelines, and to tell my loan officer to have your head underwriter call their head underwriter and ask for an exception. YOU WOULD NOT DO THIS. I was told that because the proerty is out of the area (FannieMae toldme, as long as it is in IL, it is not out of the area) you require it! this is farmland, always has been. If this is something you want then you should pay for it!!!

As four in the afternoon, on the day before I am to close, I am told it is not going to happen without that study. All along, however, I have been assured we are closing time.

This was disgraceful. The ball was dropped so many tiem it is laughable. But you know what, I AM NOT LAUGHING. We now have to start from square 1 with another lender. As a Realtor, I will not be recommending your bank.

I won't even say sincerely.

Thank you all for letting me vent.

-- Cordy (ckaylegian@aol.com), June 29, 2001

Answers

Response to Just need to vent!

Cordy, I am so sorry things have turned out this way. I wish I had the words to make things better, but I don't.

I hope things get better for you soon. I won't even try to say all those meaningless comforting things that people try to say in these situations because I know (even if some of them often turn out to be true) that it is no comfort. I hope my sympathy is SOME comfort.

Hang in there.

-- Sojourner (notime4@summer.spam), June 29, 2001.


Response to Just need to vent!

Your comments sound pretty ordinary to me, unfortunately.

You will probably feel better if you use a bank that is local to the property, and get rid of the underwriters that are using "fannie mae" guidelines.

Having been a broker in my state for a long time, I find it amazing that the process of purchasing a property can not move foreward until such time as the "hard copy" file outweighs the purchaser. This is government intervention at it's finest.

I do recall when buy and sell meant just that and could close in a week or less, even with financing. But then I am sort of from the old school, I even still have some carbon paper in my office. That's a little bit of my rant...Good Luck and it is a shame that luck is required to make it work.

-- Ed Copp (OH) (edcopp@yahoo.com), June 29, 2001.


Response to Just need to vent!

We are going with a local lender and if we are lucky may be able to close in a week or 2.

When we bought our 20 acres in WI we went to the bank in town, shook hands with the president and that was basically it.

One of the reasons I went with this particular loan officer, we was cutting his commission and most of the banks fees. Saving us quiet a bit of money. Now I have had to pay for another appraisal and most likely for credit checks and everything and it will probably wind up costing us more.

I saw the new appraisal this afternoon. The first appraiser did not even count the second floor of the house in the square footage!

Life is so full of learning experiences.

-- Cordy (ckaylegian@aol.com), June 29, 2001.


Response to Just need to vent!

That's why it's good to stay with one banker for years. I've had the same one 11 years here, and all I have to do is call him, he takes care of everything for me, and calls us when it is time to come sign the papers, usually under 10 days, this last time on re-finiancing was 3 days. Even when he changed banks, he took my morgage with him, at my request. A good personal banker knows you, you're not just a number to them.

-- Cindy in KY (solidrockranch@msn.com), June 29, 2001.

Your problem is not the bank really its Fannie Mae, alis the Federal goverment. By the time you get through with the paper work and bureaucy you will never apply for another loan with them or FHA , your GI bill any of the Fed programs. I just told people that wanted to buy propery from us that if they wanted to use any of the above they were on their own as I just didn't have time to waste trying to answer the stupid questions. Get financing with a local bank or morgage company that is not insured by any federal agency. Good luck and it will be simpler this time around.

-- David (bluewaterfarm@mindspring.com), June 29, 2001.


Hi Cordy! I really hope things have gotten alot better for you since your post here....reading about your plight sure made me thankful about our land transaction.....20 years ago, we bought 40 acres in Southeastern Ohio. With it we got a few run down out buildings and a 135+ year old farmhouse...all for $32,000. Today we have an orchard, a 60 x 70 ft. garden, herb & flowerbeds galore, 2 jersey heifers, 18 rabbits, a flock of 30 chickens, 3 happy children, and are still working on the farmhouse...the list goes on and on. Just wanted to tell you to hang in there...because good things come to those who wait...Good Luck! Debbie

-- Debbie Bullington (harmonyfarm57@hotmail.com), July 02, 2001.

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