I’m not going to address the specific nits mentioned here – but bring up some hoops a friend is going through.

She and her husband are buying a bank owned home in Simi. Ironically, they’d made an offer when it was pre-forclosure for a lot more than the current agreed upon price. Previous idiots rejected it and got foreclosed on.

They have done everything right. Spent far less then their income to save a large downpayment. Doing so meant living in a very small rental for years. They each have 1 credit card, that they pay off in full each month. They were easily pre-approved, at a decent rate, for the price.

The selling bank first tried to insist they finance through them at a less favorable rate. They successfully rejected that.

Their escrow was going forward when the *selling* bank said they didn’t have *enough* credit. Insisted they get more credit cards. WTF? (They have credit scores in the high 700’s!) Mind you the lender is fine with their credit and they’re the one loaning the money. The *selling* bank also said that their frugal rent of the past 5 years was too low compared to their mortgage payment and suggested they would have payment shock. Their realtor has worked overtime explaining that they were saving the difference – and that was the source of their downpayment.

These are people who lived below their means to save a downpayment. Paid their credit cards on time, in full. Did everything right. Their lender is thrilled with them. The selling bank is being ridiculous.

It’s like the selling bank doesn’t want to sell. Escrow has been pushed back while this is resolved. It’s a nightmare.