Owned a company that in 2007where by the bank called the company loan forcing the company to liquidate all the assets to satisfy the loan. Further, our personal residence also secured the loan and the bank took that as well. As a result, we were forced into forclosure and had to file BK. Since that time period we have been renting a home and building back our credit which is now back in the lower 700's. We began to explore loan opportunities for a conventional loan with a maximum amount of $417,000. We spoke with several companies and ended up selecting First Option Lending located in Scottsdale. We spoke with the loan originator, a Nathan Brack and told him exactly what is listed above and stressed the forclosure and BK as what good would it do us not to provide the exact details to that he would find on our credit report and to further insure he knew everything so we would have no issues down the line. We completed all their forms for information as well as submitted all the documentation they requested. On or about October 14 we were notified that "Congratulations, We were approved for the $417,000 conventional loan". I immediately call Nathan and requested a pre-approval letter. I was emailed a pre-qualified form letter. I called back and said I want a pre-approval letter and ended up getting a personal letter from Mr. George Wegmann, the branch manager that confirmed our loan was "Approved". With this document, I was now confident to aggressively look for a home. My wife and I spent hundreds of hours looking at homes online and with our realtor. It took us about 4 months to find the one we wanted at the price we wanted. We provided all the info on the home to First Options and they even lowered our 30 year loan rate to. 3875%. We were very excited and put a deposit down on the home and set the closing date for April 3rd. We then set the home inspection date for March 8th. We converted some assets to cash for a 10% down on the home and started planning our move. Two days prior to the home inspection I get a voice mail from Nathan that states "Bad news - The forclosure was hiding under the BK"."We are denying your loan." I returned the call and got a bunch of excuses as to the error made. I said that was their problem and they need to honor their commitment and not make their customer pay for their negligence. I was given the run around with the end result of Nathan Brack stating the best he could do is give me the name of their branch manager to call. I would of thought he would of been on the phone with me first thing. I intend to pursue and and all legal remedies as well as file complaints with several agencies. I want to make sure this never happens again to anyone else. You make a loan commitment, you honor that loan commitment with the understanding that your credit doesn't change prior to what is was approved at. Any suggestions or input would be greatly appreciated.
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