My wife and I put an offer in on a new development condo in NYC last year. The project was expected to finish in April but got pushed a few times until this month. Last year around November we started working with Chase bank to get a mortgage. As applicants, I feel like we're the ideal candidates: credit scores just below 800, high combined income, a good amount of cash reserves, etc. We also are putting over 50% cash down on the total with the mortgage covering the rest.
We answered every single document request within 1 hour, getting them pay stubs, tax returns, etc. A majority of this was completed in January, but there's been a steady trickle since – to an almost excessive point (they asked for copies of cell phone bills from 5 years ago, statements from landlords we haven't rented from in ages, etc.). Still, we replied to all their requests and eventually they seemed satisfied.
So the closing was scheduled for the beginning of July. Everything was in line except the closing clearance from the bank. We called them, emailed, etc. and just kept getting the same response – "the underwriters are working on it, should be done soon." Our final inspection date went through with no major issues.
Finally, the day before closing, the bank emails us saying they didn't request some document they were supposed to get from the condo building. We were forced to delay closing by using our 1 time right to adjourn. A new date was scheduled for next week.
Now, the same thing is happening again. I've called our lending officer, the manager, etc. literally twice a day since we had to move the closing. Every day is the same response "oh, they got the documents, underwriting is just tying up the loose ends, should be done very soon."
Now, we're less than 5 days out from the closing and they've still not cleared the file. Our lawyer, myself, our agent, basically everyone has called them repeatedly stressing the importance of having the clearance immediately. Again, same response.
We're really worried at this point. We can't push the date anymore and the sellers have in the contract that we owe them penalties for delays. Every day is the same answer from the bank and nothing gets done.
What can we do? We do not have a mortgage contingency (we had a "pre-approval" contingency which is no longer relevant). We can't walk away from the deal without loosing the 20% we've put down. Is there any way to get a bank to move the process along?
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