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beauphus
117 Posts |
 Posted - 04/09/2008 : 7:41:43 PM
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Kind of a long story but I wanted to see what you guys thought.
I started working with a client mid last year on a loan to get her out of a contruction-perm loan with Indymac that she has been in for 2 years. I got her loan approved and ready to close pending the CO ont he newly built property and she notfies me that she was very grateful for my help but Indymac was flipping to her to a perm loan with no closing costs. I was not upset as we had a great reltaionship. The loan was for roughly $900k, 50 LTV, client is a doctor with assets. Basically it was an easy deal. We parted ways on good terms and she assured me referrals for my patience and lost business. This was in September 2007.
Then she calls me back in January 2008 and tells me she never got the loan flipped to perm financing. Indymac declined it stating that the builder filed lis pendens on title due to unpaid contractor bills. The builder had filed lis pendens thinking the client wouldnt pay. He did poor work on the property with a ton of mistakes, very poor business ethics, and overall crummy work (which left the client with another $150k cost to correct) and was trying to guarantee payment of his remaining balance due (approx $100k). Indymac assured her throughout the process that she was nearing closing. They even told her the lis pendens wasnt an issue. They scheduled 2 clsoing dates with her and cancelled both before finally killing the whole deal. Needless to say the client was now stuck in an 8.5% Indymac construction loan and forced to find financing elsewhere.
Of course she came back to me and I began finding an outlet. Simultaneously the market fell apart making it increasingly more difficult to get a loan. I had this thing underwritten everywhere and each lender had their own reason for declining the deal. It is now April and she just closed finally. Definately not as easy to get her approved now as it was last year (stated jumbo) but its done.
My question is does she have any recourse for the interest paid to Indymac from the time they pulled her away from me until now? I know it seems far fetched but she has been ripped off by the builder and in my opinion to an extent Indymac dropped the ball - not due to lis pendens but due to lack of funding capacity/resources for that loan (my opinion). All that had to be done to correct the problem is the balance to the builder be escrowed until the client and builder reach an agreement for payment or the builder corrected the mistakes. right? The penalties and interest from Indymac totals nearly $60k.
I know its a long story but I appreciate any input. I really feel bad for this poor woman. She has been an awesome client and I am trying to help her recoup some of the costs of this fiasco. Any thoughts? |
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propertylender.c
1017 Posts |
Posted - 04/09/2008 : 8:31:50 PM
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It sounds like your client has a claim more against the builder than Indymac.
Unless Indymac put it in writing that the lis pendes was not an issue, good luck proving it.
Best thing to do is have her get an attorney ($350 an hour or a good one for $450 an hour) and have her go after the builder.
But, she better make sure the builder has assests first, otherwise, good luck collecting.
She can go after Indymac, but it would be for the hell of it (assuming they will still be around.)
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mortgagemessiah
7458 Posts |
Posted - 04/09/2008 : 9:42:29 PM
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| Have her talk to a lawyer about going after the builder. You really need to work on your spelling. |
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jenalpha
643 Posts |
Posted - 04/09/2008 : 9:57:16 PM
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| how horrible! I am not surprised, especially with how this market is right now! |
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neversaynever
978 Posts |
Posted - 04/09/2008 : 10:07:00 PM
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| Wow, reminds me of a lady we tried to flip to Perm financing with Indymac, similar loan size, Siva, etc. This part was hilarious, the lady actually filed a construction lien on her own property (they had some small constuction outfit they operated), try making sense of that one, the borrower couldn't... |
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Tsnyder
7652 Posts |
Posted - 04/09/2008 : 11:05:18 PM
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As everone has said, she needs to speak with an
attorney but I doubt she has a cause of action against
IndyMac.
She should have contacted an attorney the moment she
learned of the lis pendens and had him file an action to
quiet the title. It would likely have been resolved then.
Tsnyder |
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beauphus
117 Posts |
Posted - 04/10/2008 : 06:35:24 AM
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she is already after the builder. thanks for the response everyone! sorry for the spelling mistakes. no wonder i couldnt get my GED.
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EMScommercial
4545 Posts |
Posted - 04/10/2008 : 11:44:54 AM
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| My opinion, for what it's worth is that she won't get anywhere with what you've written going up against indymac.... |
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