Second Refinance Denied Last Minute

6 Replies

Long story short Finance oF America took me through a couple months of pre approval and approval status even gave me the final print out of the loan amount and terms only to tell me days before i was to receive money that because of "background information " i will be denied . If this was a problem why didn't they do this first ? why take me through months of paperwork and paying $600 for an appraisal , ( which by the way they never even finished ) ? This also happened with quicken loans , days before was going to receive funds was denied .

I have no mortgage on my house and have it rented out .

@Ean McNaney 2 things here:

1.  This is going to sound strange but in lending each investment property you own increases your foreclosure rate.  I mention this because large banks, specifically ones that are publicly traded, are NOT banks we should be using on investment properties.  Most investors use smaller to mid-sized banks.  The smaller banks don't have as many "Overlays" (those are the extra rules banks use to limit risk).  So focus on smaller banks for more of a success rate.

2.  What was the "background information" they stated came up?  


Really sorry to hear this. Can you articulate what type of loan was it and where they found you wanting in terms of background information? It will for sure help others on the forum.

@Wayne Brooks  I did report my background information , which was a felony marijuana charge 8 years ago, they never stated exactly what it was just sent me a denial letter with reason being "background info" .  They were impossible to get a hold of , i never even talked to them once on the phone , let alone met them in person, also never performed the appraisal even though i paid for it .  this also happened with quicken loans . How is a person supposed to be a productive member of society and make a change if you cant get a loan to be an entrepreneur let alone get a decent job? @ Andrew Postell   , the lender was Finance of America , there not small but definitely not one of the big lenders , if you have any recommendations for small lenders or any alternate lenders please let me know! 

@Sam Josh it was a cash out refinance , i bought the house cash and have it rented out as well as fixed it up myself and put about 25k into it . The background info was not stated . Yes they did provide conditional approval , stating all terms have been accepted . 


I don't have any advice on the loan but I would encourage you to look at the possibility of getting your record expunged