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Wilmington Finance (AIG Bank)


ixocean
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Hi all, just found this site tonight. Great info!

My question is regarding the situation my wife and I are in today. We live in Florida and received a condo-conversion letter a few weeks ago. Facing the prospect of having no where to live in a few months and the way the real estate market here is leaving us behind, we decided to apply for a mortgage loan, knowing that we still carry four unpaid charge offs amounting to about $12,000. <--- We know we made some bad choices, it won't happen again. We do have a number of positive tradelines including a car that is almost paid off, several credit cards with low utilization levels, good rent payment history for two years and stable employment.

I applied through Lending Tree and received eight offers. I pursued two, one LO pre-approved on the condition we pay the COs and then contact her 30 days after so she could re-run our trimerge. I'm coming in at about a 585 and the wife at 630. I am the primary wage earner, with a combined annual income of $78,000. The second company, Wilmington Finance offered to loan without making us address the charge offs. Both companies offered 100% financing (80+20).

To move the process along with Wilmington, we sent our docs in around the 17th, and signed a contract to purchase our condo on the 22nd, placing a $13,800 deposit (14-day right to cancel). My concern is that the first bank called today asking if we were still interested and I explained Wilmington offered to loan w/o the COs being paid and she said impossible, that they are most certainly going to require payment at closing. I advised her I confirmed twice with the LO at Wilmington. She advised me to get it in writing. I am worried now since we only have $17,000 in the bank, over $13k of which is now in an escrow account and will be non-refundable come Tuesday the 6th of December. We won't have enough cash to settle the COs at closing, if that will in fact be required.

I need some advice, I plan to call our LO at Wilmington to see what she says, but from reading here I understand they aren't locked to anything until the commitment letter comes, if at all, which won't likely happen until after the 6th, which will back us into a corner as the builder has a 12/28 date set for closing at which time penalties begin if we delay beyond that date.

Thanks in advance, great forum!

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There are so many loan programs in the mortgage business, that I would NEVER say impossible. What this really means is that for the lending programs that she knows of, you can not get the deal that Wilmington offered you.

There are a lot of programs out there that do not require you to pay off old charge offs. That is not a problem.

What I would question is why it is taking 10 business days to get the initial approval on your loan. I assumed that they did not get your package until the 21st, and no one worked (it seems) from Wed noon til Monday, but that still leaves 10 days.

Do give her a call and ask for status. She should have a condition sheet by now. Have her let you know what conditions are that are still open. Should not be many.

Here is a question that you should ask her. "Are you having a problem with the condo's being non-warrantable" I would assume that they are non-warrantable, as the HOA is newly formed, and is probably still in the control of the owners. A lot of lenders don't like them.

I have not worked with Wilmington in a long time, and in addition, programs are not always available to both wholesale and retail.

Charles

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Thanks for the reply Charles.

I called the LO today and explained my concerns to her. She said that the other LO was right in the sense that for conforming loans, the COs would have to be paid, but since we're going for a non-conforming loan, that isn't the case. She said COs under $5000 would not have to be paid according to what she's seen. She requested a commitment letter from underwriting and said she will be able to have that for us by Monday at the latest, which will state conditions, if any such as CO payoffs, etc. According to what she said, this is essentially underwriting approval, put down on paper, and it's just a matter of the actual closing which she indicated is scheduled for the 20th at this point.

She seemed genuine, and if I understand the law, the bank HAS to stick with that the put down on the commitment letter. Does that sound right? Obviously cutting it close to our Tuesday deadline, but unless I'm wrong, if they give us a commitment letter without CO payoff conditions then we're okay, right...?

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