In May of 2005, I purchased a townhome in La Mesa, CA. The loan was in my name although I was buying it with my boyfriend at the time. Finding a property was the hard part because people were putting in offers all over the place. The property we bought had at least a dozen other offers, most above the asking price (which included ours at $15K over). But we knew we could afford it, we weren’t getting in over our heads, and we knew we would need to refinance after two years to get around the APR jump. Which we did; and when we did, I added my boyfriend to the title and the loan. A year later we ended our relationship. We decided that we could continue to live together until one of us could afford to move out. WIth the crash in the market, the value of our property is now ~$100K less than what we owe on it. But we continued to make our payments on time every month.
Four years later… Yes, four years later, I found myself in a position financially where I could afford to purchase a second property and finally move out. Finding the property was the easy part this time. I found the property that had everything I was looking for! I put in an offer, again over the asking price but not by much, and the offer was accepted. Then the nightmare began.
The lender that my mortgage broker decided to go through, which I had already been pre-approved by, started requesting information that seemed a little out of the ordinary. But I was willing to go along with it because I really wanted this property that was perfect for me, and I really wanted to move out of the house I am sharing with my ex-boyfriend.
They required an inordinate amount of documentation including signed letters from me and my ex-boyfriend stating that I am, in fact, intending to use the property as my primary residence. They also wanted me to obtain a letter from my employer, an international, multi-billion dollar company, that explained why I travel to DC for my job and that I am allowed to telecommute when I’m not traveling. A request that perhaps a small company might fulfill easily, but a large company like mine first needed to go through a review process involving numerous people only to produce a letter that states the same information as provided by an employment verfication.
Now, after paying $475 for an appraisal, and dealing with this documentation process for 4 weeks, the lender is probably not going to fulfill the loan. This means that I will have to go through a different lender, at a higher interest rate, pay another $475 appraisal fee (because each bank wants to have their own, even though the appraisal was JUST done three weeks ago). And I’m still not even guaranteed to get the loan and could lose the $2180 escrow deposit as well!
I have credit ratings in the 800’s, I’ve got money in the bank to put down a 20% deposit, I have a steady income that is enough to cover both mortgages if necessary, and I’m in a position where I CANNOT get a bank to give me the loan! Four years ago they were throwing money at me, without even verifying my income.
So I’m stuck in a property that is valued $100K less than the mortgage that I owe, and living with my ex-boyfriend. And I want to buy another home to move into but once again, the banks are sticking it to me.