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Update: Family won't face homelessness after landlords step into help and another Bank of America customer says he had a similar experience.
GRAND RAPIDS Instead of moving into her dream house this weekend, Jane VanOstenberg-Smith might be homeless after Bank of America denied her nearly $70,000 loan in the eleventh hour.
Just last week, the Grand Rapids single mother of two had been told everything was a go on the loan for the modest three-bedroom house in Alger Heights. So she gave notice to her landlord, changed her address and her boys fall schoolbus route and spent nearly $500 on a washing machine and dryer.
But the loan deal fell apart less than a day before Fridays scheduled closing.
Its just wrong, said VanOstenberg-Smith, 41, who was in tears Thursday after receiving the news. What they are using to deny me in the very last hour of the very last day is the same information they had six weeks ago when they pre-approved my loan.
VanOstenberg-Smiths experience is a cautionary tale that loan applications are never a sure thing until final approval. And lenders are scrutinizing applications more closely than ever as the country recovers from the mortgage industry meltdown.
Her real estate agent, Anne Lauten with Keller-Williams Realty, said this was just the second time in her 14-year career that a bank has pulled out at the last moment with a client. She is now scrambling to find another lender for VanOstenberg-Smith.
We were totally caught off-guard because everything seemed to be moving in a positive direction, said Lauten, adding she was also told by a Bank of America loan officer to proceed with setting up the closing.
Bank of America has left this family in a predicament, said Lauten. You dont wait until the last minute, pull the plug and say we cant help you.
The lending giant is looking into the situation, said a Bank of America spokeswoman.
read more Family on verge of homelessness after Bank of America denies loan in 11th hour | MLive.com
GRAND RAPIDS Instead of moving into her dream house this weekend, Jane VanOstenberg-Smith might be homeless after Bank of America denied her nearly $70,000 loan in the eleventh hour.
Just last week, the Grand Rapids single mother of two had been told everything was a go on the loan for the modest three-bedroom house in Alger Heights. So she gave notice to her landlord, changed her address and her boys fall schoolbus route and spent nearly $500 on a washing machine and dryer.
But the loan deal fell apart less than a day before Fridays scheduled closing.
Its just wrong, said VanOstenberg-Smith, 41, who was in tears Thursday after receiving the news. What they are using to deny me in the very last hour of the very last day is the same information they had six weeks ago when they pre-approved my loan.
VanOstenberg-Smiths experience is a cautionary tale that loan applications are never a sure thing until final approval. And lenders are scrutinizing applications more closely than ever as the country recovers from the mortgage industry meltdown.
Her real estate agent, Anne Lauten with Keller-Williams Realty, said this was just the second time in her 14-year career that a bank has pulled out at the last moment with a client. She is now scrambling to find another lender for VanOstenberg-Smith.
We were totally caught off-guard because everything seemed to be moving in a positive direction, said Lauten, adding she was also told by a Bank of America loan officer to proceed with setting up the closing.
Bank of America has left this family in a predicament, said Lauten. You dont wait until the last minute, pull the plug and say we cant help you.
The lending giant is looking into the situation, said a Bank of America spokeswoman.
read more Family on verge of homelessness after Bank of America denies loan in 11th hour | MLive.com