The case here is our close friend (distantly related to me), his wife, my boyfriend went together with me booked a Pulte home. Only my friend was in the contract. I was then engaged to my boyfriend.
I was not married as on July 2012 when we signed the contract; we thought it was a good idea for four us to live together. The home was big enough and it had four bedrooms with a large sq. footage to accommodate all our needs. In the meantime our friend’s financial status took a turn because of personal reason and they did not want to continue with furnishing the mortgage for this home. They were almost on the *** of dropping out by November, 2012 time frame.
We got married on September, 2012. We never owned a home in this country and we were living in 2 bedroom condo. I and my husband were not in the contract or on the loan initially. We liked the home a lot and did not want to let it go, so we pitched in on December, 2012 and got added to the contract since our plan initially was to live together with our friend. We became the primary buyers of the home and Pulte sales wanted to retain our friend’s name in the contract. Our friend’s got removed from the contract.
Pulte Mortgage said everything is fine and we can go ahead. Our friend had a written mail confirmation from everyone including the loan processor, that there are no red flags because of this transaction. Pulte Mortgage asked OUR FRIEND TO WITHDRAW HIS LOAN APPLICATION. I and my husband were asked to furnish a new loan application.
Our home was supposed to close on May1, 2013. We spent “hours negotiating” the interest rates and every itemization on our mortgage. We furnished all types of necessary documents. They gave us every bit of confidence that the loan would go through fine. We trusted them totally and the Pulte loan processor told they will provide competitive rates and match the rates offered by other lenders and not to see any other alternatives with mortgage. Also Pulte Homes were giving us $10,000 incentive if we chose their mortgage. We went for pre-drywall inspection and everything looked green with the Pulte Mortgage.
We were little concerned that loan process was very slow and every time we called the loan processor, we need to summarize the entire story of our loan. He was not attentive enough to remember the loan he is processing and in the end he would always mock us saying, ‘trust me, Pulte Mortgage is processing tons of loans and you are not the only person. Everything is looking good and you will close on schedule’ (Concerned authorities please listen to the taped conversation)
We were dealing with the same loan processor starting January to April, 2013. They had more than 120 days to go through our application and underwrite it. On April 23, 2013 JUST 7 DAYS BEFORE CLOSING, they had issues with our loan application. They were repeatedly emphasizing that both I and my husband are credit worthy to get a loan from Pulte but they suspect straw buying in our contract. Their demand was either get friend and his wife added in to loan or rewrite the contract in new price as of today (which is at least $65,000 more), forfeiting all the deposit ($28,000) we paid till date, which amounts to a total loss of around $100,000 for us. Will any sane person be willing to do this? Say if the price has gone down will they be ready to rewrite the contract in low price? They were totally reckless and very adamant on their demands.
The definition of straw buying is people finding a stranger to buy their investment property. The stranger is a person with good credit history but does not have enough funds and is not going to occupy the home as his/her primary residence. So the stranger who is buying home on behalf of someone else will not have any commitment towards the mortgage and can default payments. In our case, we are not strangers to our very close friend in fact we are more like family, we have more than enough funds , we are taking the mortgage on our name and we are occupying the home as primary residents. We even asked Pulte to come and inspect us for the occupancy issue they were concerned. When none of the above criteria matches, why Pulte Mortgage Corporation (PMC) suspected that this is a case of straw buying? Why Pulte made us go through this hardship at very last minute? We feel Pulte scripted to do this in last minute because they thought that we will be left with no option as we are already stuck with them and they can make profit in either ways by pushing us out of the contract to find a new buyer or rewrite the contract with us in higher price. Pulte dragged us in to this mess by misrepresenting us.
HOW CAN PULTE CHANGE LOAN TERMS JUST A WEEK BEFORE CLOSING which leaves us in neck deep water with no other alternatives? I’m really tempted to name this guy who dealt with us (loan processor from Pulte Mortgage) but I’m holding off because I have some morale beliefs and I don’t want to reduce my caliber. We reminded him “hundreds” of time about our closing date getting closer. He failed miserably in his job and even in the very end he misrepresented to us saying that Pulte Homes agreed to re-write the contract in original price giving us hope. He would repeatedly try to intimidate us by giving a lecture about criminal justice as he has graduated in it and he would also threaten Vice President of Pulte Underwriting has uttered some words, which you can never breach.
On May 4th, 2013 (we are supposed to close the home on May 1) PMC made the decision that they will not proceed with our loan anymore. There are really no words to explain the hardship we underwent because of Pulte’s misrepresentation and breach of trust. We have wasted 100 hours of job time to deal with Pulte Mortgage. We had to go on loss of pay leave to negotiate with them. We were unable to concentrate on our work for which we had to face repercussion.
JOB: Every single person from Pulte we dealt with was completely rude to us except for the sales consultant. They made us loose our sleep for past month. We did not have a place to live. Pulte made us homeless. They misrepresented till the very last minute that everything would go through fine.
HEALTH: Our Hard earned money $28,000 was at stake and it took a toll on our health. I was admitted twice in emergency because of stress I was undergoing in dealing with them. I had to undergo series of scans and multiple tests which finally was tracked down to the stress. I want Pulte to pay my hospitalization cost.
HOME: We came out of the current lease we were living at and we were unable to extend the lease because someone else was ready to occupy. We moved to a temporary accommodation paying $180 on per day basis for 25 days
LENDER: We had to choose other lender, we were given no time. Pulte would threaten us saying that there is clause in contract that we had to pay a fine $250 per day if we were unable to close on time. Pulte wanted us to secure a loan in a week time which they cannot achieve in 120 days.
MONEY: We were literally under so much pressure that we needed a lender who can save us from drowning. We did not negotiate any terms with new lender because of the fines we were threatened with by Pulte amounting to $250 per day in addition to temporary accommodation we were spending ($180) on per day basis. We spent $15000 extra for accommodation and medical expense. We lost other $10,000 Pulte incentive. Our monthly commitment became high for the loan and now we are forced to re-finance the loan.
Our question is IF PULTE INFORMED US BACK IN DECEMBER,2012 WHEN WE GOT ADDED TO THE CONTRACT THAT THIS IS THE CASE OF STRAW BUYING, WE WOULD HAVE NOT GOTTEN IN TO THIS MESS OF PUTTING OUR JOB, HEALTH, HOME AND MONEY AT STAKE. AT LEAST IF THEY HAVE INFORMED BY FEBRUARY, 2012, WE WOULD HAVE FOUND A LENDER PEACEFULLY WITH IN OUR TERMS AND WOULD NOT HAVE COME OUT OF OUR CURRENT LEASE BY PAYING THE BREAKAGE. They can deny a loan with their internal policy which we totally understand but just look at the timing and conditions lay before us.
Finally we closed the home on May 24, 2012 (loan was processed in 12 days) with only us in the loan without rewriting the contract. The day we closed the home with PGP title was one more *** we had to go through. The manager at PGP title treated us with so much hostility as if we were getting the home for free. WE ACCUMULATED A TOTAL LOSS of MORE THAN $25,000 because of PULTE’S MISREPRESENTATION.
Pulte should follow some business ethics. We were repeatedly threatened we will be losing all the security deposit ($28,000) if we are unable to furnish mortgage in the specified date. The time given to find a new lender is 7 days and we were to beg to everyone we dealt with in Pulte for their mismanagement only because it was our stake. We are buying half a million dollar home and they literally treated us like beggars. If we had moved legally and dragged them in to a lawsuit may be they would have responded differently.
Pulte Homes, PMC, PGP title and PCIC will be project to be under same banner for convenience if they are able to reap benefits from customers. If some problem arises, each of these holding will project they are totally different operating bodies. Pulte Mortgage will blame on sales and vice-versa. They should be in our position to know what we have undergone because of their gameplay.
They should treat the customers with some respect and not take them granted when the business is upstream. If they continue treating people like this, no one will ever consider them during their tough time. One of my cousins wants to buy a home at same community; I’m really tempted to discourage it vigorously. If they still consider buying a home, I’ll make sure they know the hardship we underwent with Pulte Mortgage. I’m just holding for the response to this complaint. Even in future if we ever plan to buy an investment home which we expect it to happen soon, we cannot consider Pulte unless they review their business practices. There are hundreds of builder in same area and I’m sure none will treat the customers like the way Pulte treated us.
We have not consulted an attorney till date because our goal was to get the home for which we have invested our savings, time and we have handpicked every option we needed and it was so close to our heart. For Pulte, it may be 1 out of 1000s of units they were selling as a national builder. For us this is the home we thought we will start our life with as we got married recently. At one point we thought we can take the monetary hit if we have to lose the deposit rather than suffer so much emotionally and physically. No one should ever undergo the amount of stress we underwent with Pulte and that is the reason for this complaint.
We are highly qualified software professional’s with advanced degree and we are in our late 20’s and married recently with our immediate relatives living in our birth place. They instigated insecurity in to our life and caused irreversible losses to us. Although we were not citizen of this country currently, we contribute to development of this country with the taxes we are paying and work we are performing. We wanted our children to be born and brought up here because of the straight forwardness in the system which with this country operates. The amount of bitterness and instability we faced because of this Pulte debacle made us retrospect everything.
We were unable to enjoy the happiness of our first home. They made us feel so miserable for buying this home although we have a combined annual income which is half of the entire value of this home including all options. Our credit history was so clean and we were more than creditworthy and can afford this home easily. We definitely need an answer for the amount of inconvenience they have caused to me and my husband.
I want them to read and at least respond to this complaint. I want them to acknowledge their mistake. We felt that we were never treated like fellow human being. I want their vice-president of the concerned department listen to the taped conversation between us and loan processor, because he will always try to intimidate us using the VP word as if we were don’t know how an office set up looks like. Both I and my husband are working in a company which is running the entire infrastructure for globe’s internet and we know how a corporate operates. At the end of the day, VP or President is a customer service agent for a business like Pulte and we totally understand there are internal corporate policies which they need to abide.
I feel like spreading the word about Pulte to each one we come across and the hassle we underwent because of them. They have misrepresented us and gave us literally no time or alternative. On top of all the inconvenience and damages they have caused, they will still treat us like we are the one who is wasting their time. I’m not sure if there are no customers, will they be building empty houses and keep running the business? We cannot believe that a company with so much customer centric business can treat us like this. I have mentioned the amount of monetary loss occurred ($25,000) to us because of Pulte. I’m not sure how they can compensate the mental and emotional trauma we underwent because of choosing them. The only mistake we made in our life time is and will be choosing Pulte. I’m not sure how they will ever gain our confidence.
Monetary Loss: $25000.