Universal American Mortgage Company, LLC Mortgage Complaint

Universal American Mortgage Company, LLC Mortgage department,

Conventional fixed mortgage Credit decision / Underwriting Florida

We placed a contract on a new construction spec home owned by -. At the time, our current home was under contract ( cash deal ) and we had to close in 3 weeks. The realtor at - did not make the sales contract contingent on the sale of our home, but instead made it contingent on our ability to obtain financing within 30 days. He also suggested that we put down a hefty binder deposit of - to secure this new home. We did. Two days after signing the contract for the purchase of our new home with -, our buyers backed out of the deal to purchase our existing home. This left us with - choices if we still wanted to move to the - -. 1. Put our house back on the market ASAP or 2. Rent out our current home. After doing much analysis on market conditions, etc.. we decided that we did not want to do either, and we would just remain in our current home and get denied on the new construction - - based on the fact that


My husband and I have been in salaried jobs for 20 years and we are still in those jobs. However, in the past 3 years, we opened a business which has sustained significant losses. When submitting the documentation for our loan, we provided tax returns showing these losses over the past two years. Our initial ( verbal ) loan approval was based on the requirement that we would either need to rent or sell our current home. We told that that we wanted to do neither and we submitted our official Notice of Cancellation and asked that they return our $10000.00 earnest money check. The very next day, we get a call from UAMC ( - 's mortgage company ) saying that they are overlooking the losses on our tax returns and that we are approved carrying - mortgages. Based on this unconditional loan approval, we have - options : 1. We close on the new home or 2. We lose our earnest money deposit or 3. - holds the earnest money for 12 months and we buy another - -. Our issue with this is that we KNOW we ca n't afford our current mortgage plus the new mortgage based on our current ( and sustained ) business losses. They are forcing us into a financial situation that we ca n't afford and that significantly worsens our financial position. Our Debt to Income ratio without counting our business loss is roughly 37 %. Our Debt to Income ratio while counting out business loss is roughly - %. I know that the - standard for DTI max is - %. We greatly exceed that DTI when our tax returns are factored in. We do n't understand how a lender can 'overlook ' a two year average of almost $65000.00 in business losses, and therefore force us to purchase a home that they KNOW we ca n't afford.