LEND SOME MONEY LOST AN INVESEMENT PROPERTY AND MONEY BECAUSE LEND SOME MONEY DID NOT PROPERLY REVIEW MY FILE Connecticut East Haven
On December 11, 2021 I submitted a loan application with Lend Some Money to qualify for a hard money loan to purchase an investment property located. One December 18, 2021 I received an email stating the loan was conditionally approved. The initial closing date was January 26, 2021. This deadline was missed because while the lender had all the requested documents, I was told the file was still in underwriting.
The seller granted an extension for me to close on the property until February 2, 2022. I was assured by loan officer Michael Barker that the loan would close by the extension date. On January 28, 2022 I was contacted by loan officer via telephone and informed that since I was not a current home owner underwriting did not approve my file.
The lender provided a preliminary approval which meant there was an initial review of my file but yet waited for 47 days to inform me that the loan was denied. Given it took 47 days for the lender to determine that I did not qualify for the loan, I have lost the $1,500 earnest money that I was required to provide to the seller. The lender charged me $49.99 for a background/credit check and required that I pay $900 to have the property appraised.
1 Updates & Rebuttals
Yaisa
Chicago,Illinois,
United States
LENDER DID NOT CONDUCT DUE DILIGENCE
#2Author of original report
Sat, January 29, 2022
On December 11, 2021, I submitted a loan application to Lend Some Money to qualify for a hard money loan to purchase an investment property. On December 18, 2021, I received an email from the Loan Processor, stating the loan was conditionally approved.
The initial closing date was January 26, 2022. This deadline was missed, while Lend Some Money, had all the requested documents, I was told the file was still in underwriting. Because of the efforts of my realtor, the seller was able to receive an extension to sell the property until February 2, 2022.
I was assured by the Loan Officer, that the loan would close by the extension date. On January 28, 2022, after 5 p.m. central standard time, I was contacted via phone by the Loan Officer and informed that since I was not a current homeowner underwriting did not approve the loan.
Lend Some Money provided a preliminary approval which meant there was an initial review of my file but waited for 47 days to inform me that the loan was denied.
Also, what is most disheartening about this experience is that Lend Some Money was made aware that the seller had a specific date to sell the property to meet the tax redemption deadline or the seller would lose the property.
At time point, there is no time for me to seek another lender or for the seller to find another buyer. This negligence has cost me a little more than $3,000 which pales in comparison to the loss the seller will experience by losing the property.
Additionally, the appraisal was initially ordered incorrectly. It was ordered to determine the “As-is’ value only and I had to pay an additional fee to include the After Repair Value.
Furthermore, when the Operating Agreement for my LLC was requested, I promptly supplied the document. Three weeks later, I was told that the additional members needed to provide a personal guarantee. I paid my attorney to expedite the process to update the document to remove the additional members.
My credit score is in the 700's and I have a six-figure income that can be verified. While, I understand and cannot change the lender's requirements, I am certain that I could have found a lender that would have approved me to close on this property as I have purchased investment property in the past.