Tell Us Your Real Estate Story

Posted by: Chris Palmeri on May 29, 2009

Cohara_Appraisal.JPG


Reader Alan Cohara reminds us how seemingly minor details such as a certificate of occupancy can lead to major troubles. He bought a $1.5 million home north of Fort Lauderdale two years ago, which he couldn’t move into.


“I signed a contract on a newly constructed home. The bank told me I could not close without a certificate of occupancy. I did my inspection the day before closing and the builder was finishing things. On the day of closing I called the closer at the bank and asked if the certificate of occupancy was in the file. She replied of course we have it we would never close without on. I closed and when I got to the house I was locked out.

It still had 5 open permits on it and would not be ready for another 9 months. The bank gave me a right of rescission which I mailed and faxed and the bank said they would not fund the loan.

Well guess what they did. I could not sell my other house because I had no place to go and got stuck with 2 mtgs.

I currently have a lawsuit against the title company, builder and bank.”

If you’ve got a real estate story you’d like to share with our readers please email it chris_palmeri@businessweek.com and include a picture of your home!

Reader Comments

don ackerman

May 29, 2009 12:01 PM

Hey the same thing happened with me with JP Morgan Chase 3 years ago. They dragged out a lawsuit for 3 years and I won the case and the house for free and got attorneys fees. Mine was processed through a Zippy loan threw Chase. On the day of the hearing we called Chase underwriting dept and the judge heard they would never fund without a certificate of occupancy . They broke their own underwriting guidlines. What fools they are.

ann K

June 4, 2009 6:01 AM

My name is Ann and I can not believe I found this article. I worked in the Tampa Wholesale mtg area at Chase and am familar with Mr Cohara since he called many times. We all felt sorry for him. Chases guidlines are to close with a certificate of occupancy on a new home. From what I understand it was overlooked because it was at the end of the month and the reginal manager needed his month end bonuses and figures to report to corp.

My suggestion is that he gets a sharp attorney and gets a hold of all the people that were responsible in closing his loan.

Good luck Mr Cohara

Robert saints

June 25, 2009 6:26 AM

I worked for Chase Wholesale and got let go when they closed down. Yes I agree Chase would not fund a loan without a co. It appears that someone at Chase was in with the broker. Zippy was problably the cause.

Post a comment

 

About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

BW Mall - Sponsored Links

Buy a link now!