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offtop22 · Joined: 14 Apr 2009 Posts: 1 1.57 Dollars($)

Hope this is all not too confusing. And I apologize in advance for my ignorance. Any helpful advice would be appreciated. But I drive a forklift for a living and know little about the home buying process.

Today I finally closed on my first home (I think?). I purchased it through lease option. Today I signed all the paperwork about the loan at closing. I paid my closing cost and signed a thing for the deed to be tranfered. The seller was happy. The lady that handled the closing was happy. I was happy. We all shook hands and I took my copies and left (settlement statement, buyer's closing statement, seller's closing statement, truth in lending statement, first payment letter......well basically a stack of papers.)

I then went to file my taxes. When I told them I had just closed that morning on my home they said I could get the $8000 tax credit. My taxes are filed.

A couple hours later the lady that handled the closing called me and said there was a problem. The seller had lost proof of my down payment and could I come up with proof. She also added that if proof wasn't found the loan couldn't be funded. She said it was the underwritter's mistake and she needed the information as soon as possible.

^Keep in mind this all several hours after I closed.

I'm already living in the home. Since I was purchasing this home through lease option I paid the down payment to him over a 12 month period. At the start of the lease I paid the seller in cash. Basically, both the seller and I have lost proof of a portion of my down payment. I spent the rest of the day looking for old reciepts and printing out bank statements. I could not find one reciept for $500. I took all I could find back to the office where I closed. They took the couple reciepts I found and told me they would call me today. They never did. And did not let me know if everything was ok. So I am extremely confused now and can't sleep.

Can a mortgage be cancelled or denied AFTER closing because the underwritter made a mistake, or information is missing. Did I make a mistake by filing my taxes and claiming the tax credit so soon after closing? Is closing over after you meet at the closing time, sign the papers, pay closing cost, and leave. Or is there some kind of time period you wait before the home is actually yours?

Edit to add.

After an hour on google I found something called a "dry closing". Not sure if this is what happened. But if so, should the buyer and seller be informed of this?

jenkin7 · Posted: Wed Apr 15, 2009 1:18 am Post subject:

Hi offtop,

A dry closing is a 'round table' closing where all parties gather to sign documents, but the seller is not paid the money at the table because a document may be missing at the last moment or because of some other reasons. Have any funds been disbursed at the table? Has the seller been paid at the closing?

gmakerley · Posted: Wed Apr 15, 2009 7:23 am Post subject:

offtop, i'm hoping that you can find numerous other documents that prove your payments to the seller.
the lender made a grievous error in allowing you to go to closing without already having all the documents.
this is a tough situation - did you have legal representation at the closing, or during the process? if you did, that's good - you can lean on your lawyer for more answers. if you didn't, then i think it'd be a great idea to find a good real estate lawyer to help you through this.

stacy · Joined: 25 Sep 2007 Posts: 15 Location: CA 4.83 Dollars($)

What a bunch of HOOEY! If the seller has been pad babe, its yours! If not, talk with the seller, if you both agree that payment has been made just cant find the document, see if you can draw up a replacement.

Guest

I did talk with the seller. He has not got his check and is frustrated.

Today I talked with the closing agent. She said that a loan officer is making it a refinance since I lived in the home for 12 months. She said that the underwritter missed this so they have to do it this way. And as of today all the paperwork I signed at "closing" is just in a file in her desk. She told me I would have a new closing date when the loan officer got done.

I did find all the documentation of my down payment to the seller. It was on my lease option contract. Which held the price of the house for me $8000 less than what was in this deal. Not sure why the seller raised the price on me. But I liked the home so I went through with the deal anyways.

The new loan amount is $8000 less than the seller is asking (the amount on my lease option contract). He called and tried to make a deal with me to pay him the differance over a long period of time after the deal.

In the morning I'm calling a lawyer.

savior70 · Posted: Fri Apr 17, 2009 3:44 am Post subject:

Hi

stacy · Joined: 25 Sep 2007 Posts: 15 Location: CA 4.83 Dollars($)

Good to hear!!! Now, make sure you do contact a lawyer, trust no one and practice CYA!!!

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Not sure if I own my home