<p>after all the ups and downs of this story, yesterday came a blow I’m not sure how to recover from. The buyers of my house are still waiting for their loan to go through, it all looks good its just taking more time than anyone expected escrow has been extended to 12/24. I was preapproved for a small loan on my new place long ago. Then yesterday the lender called: I’ve got the income, I’m putting down 80% and only taking out a loan of 20%, I’ve got a good credit score…but I’m being turned down because I have a mental illness. I am stunned. I truly can’t believe it. There are solutions. A note from my doctor might work. A co-signer will (but they have to be on the title). Like I said, I’m stunned. I’ve owned my house in Oakland for 21 years, I’ve made all the payments. And now I’m told no loan because I have a mental illness?? I truly feel this morning like I’ve fallen down and don’t know how to get up.</p>
<p>Is that legal? And it’s only a 20% loan!</p>
<p>A note from your doctor–and your lawyer.</p>
<p>I am wondering about the same thing. Also, how do they know your medical history?</p>
<p>I’m so sorry. Came on here looking for a great update, and am so hurt for ANYONE doing this to you. The implications for all of us, that a mortgage would be denied for any part of a health history, is sad and a more than a little frightening. This is worth fighting, big time, though I’d also be stunned by the initial blow.</p>
<p>Thanks, great lakes mom. I think once I get myself up off the floor - I am so stunned, I’ll figure out how to fight. Right now, I do feel so hurt I’m not even sure I could pick up a phone to talk to anyone. Maybe after the sun comes up here, I’ll figure out where and how to begin this fight. As for those who asked how they found out - I receive social security disability and social security required I have someone help me with my finances, when the lenders saw that they said “oh, she has a mental illness, we can’t give her a loan.” It really doesn’t make sense - I have someone who makes sure my bills get paid - what more could they want? Oh, now I’m getting angry…which is probably much better than sitting here crying wondering where we’ll be living come Christmas.</p>
<p>Oakland Mom - I’m so sorry that you have to deal with this awful turn of events. Once you come out of the shock, you do need to make some calls to local fair housing offices and a lawyer. I would imagine your illness qualifies as a disability and therefore it seems that you should be protected by the Fair Housing Act. See this link:
[Fair</a> Housing: It’s Your Right](<a href=“http://consumerlawpage.com/brochure/fair-hse.shtml]Fair”>http://consumerlawpage.com/brochure/fair-hse.shtml)</p>
<p>I did not mean to pry. I was just curious as to how a lender has access to one’s medical records. I think that their actions are outrageous. I do hope that something can be done about it. I am also very sorry, and I wish you luck in straightening out this mess.</p>
<p>I glanced at the Fair Housing Act. As a layperson it really looks like they cannot get away this:</p>
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<p>Toneranger thanks for posting this information.</p>
<p>OLM,
So sorry there seems to be another roadblock in your way.</p>
<p>Dear friend:</p>
<p>OMG! This is so outrageous, I am fearful for all of us. Thank you so much for trusting us enough to tell us.</p>
<p>I could use someone to make sure I get my bills paid on time! I drag my feet. I have also received all sorts of mental health diagnoses over the years; once I was diagnosed as a schizophrenic for a reaction from being taken off prednisone!!!</p>
<p>I really wish I could help right now. </p>
<p>When you talk to lawyers, etc. you are not alone, and you are fighting for the civil rights of so many.</p>
<p>PS My dissertation committee tried to keep me from getting a PhD for reasons I still don’t understand. When an academic dean had to mediate I got my degree. Then, my dissertation was awarded best in the country in 1987. So I really do know how this feels and what it does to self-esteem. Don’t let it!!!</p>
<p>Oaklandmom-
I am so sorry to hear of your challenge from the mortgage company! That is so unfair. Do your original loan documents say anything about the criteria they use to calculate your income and determine your risk as a mortgagee? What are the grounds for their denial? Are they truly denying you because you have a MH diagnosis (outrageous!) or are they saying that if the major source of your income is Social Security Disability Income (I am only using this as an example- I don’t know what your income stream is generated by) that they feel this is a bad risk as there is no guarantee that this will continue? None of use can have a guaranteed income (look at what happened to mootmom’s h yesterday-- see the SA thread) - so how do they assess risk? I understand that mortgage companies are having to be overly cautious with lending, in the wake of the disaster sub-prime lending that has occurred in the past few years, but your situation is different, and the loan amount is small. Surely there must be a way to work this out, with your excellent credit history and multiple years of on-time payments. Are you using the same mortgage company with whom you currently have a mortgage? Surely they would be reasonable if you have been a good customer. I hope you can quickly (and successfully) appeal! Keep us posted.</p>
<p>Oaklandmom:</p>
<p>Oh wow! I don’t follow for a couple of days and find out this new twist! I’m so sorry to hear about this! You’ve gotten good advice, so I hope things work out. And now, I have to go over to SA to find out about Mootmom’s H. Oh dear…</p>
<p>Some of the marmots are at Mootmom’s H’s office “fixing” things. I’ll send a second team over to your loan officer to nibble on his toes or something. Heh heh.</p>
<p>jym, they don’t have a problem with my income being from social security & told me that was not the problem -They said everything is fine and they’d fund the loan except that it appears I have a mental illness (I do, I have a dissociative disorder but I haven’t disclosed that to them) & that must be why someone else handles my fiances. Thanks to the poster who posted the HUD info - I’ll call them later. And once I have a little more energy I’m making a few calls to other lenders.</p>
<p>I really sympathize with you and have no advice to offer, but to say you must have a mental illness because someone else handles your finances is completely outragous! When I was still in college I worked for a CPA firm and we handled the personal expense, checkbooks of several of our wealthy clients because they really didn’t want to be bothered and were too negligent! I handled my grandfather’s finances years ago after my grandmother died - because she had always done it and he didn’t want to do it.</p>
<p>This is really ridiculous.</p>
<p>I echo what everyone else has said…this is outrageous, but the issue that you’re putting 80% down makes it downright bizarre. Come up with some short-term plans, just in case in takes a couple of weeks beyond when you move out before you can get this straighted out…you’re NOT going to be homeless…if you have to put your stuff in storage (or someone’s garage), it will SUCK, but things will work out… hey—you can use my garage…it just happens to be in NC!</p>
<p>well, I called HUD and filed a complaint. Now they’ll investigate. Meanwhile I’m off to find another lender. Thanks everyone for your support.</p>
<p>I just can’t believe that! Lots of inapropriate words comming to mind at the moment. Such as, find the law that says they are WRONG and sue their ****. Usually I’m a fairly gentle person but this…</p>
<p>Truly bizarre and stupid! If I had someone helping me with my finances, I would never have made a late payment due to forgetfulness or to intermittent busy chaos! I would look like a better risk. Sheeeeeesh.</p>
<p>the good news, I called another lender & told them what had happened. I’ve been approved. It will take a couple of weeks to close. My agent is working to get me moved into our new home before we close so I might be able to move next week before DS comes home for his winter break. I’m exhausted from all this and can’t tell you all how much I appreciate everyone’s support.</p>
<p>Jubilation!!! What wonderful news! You really do ride a roller coaster oaklandmom. Thanks for letting us ride with you. </p>
<p>Sending you a virtual tea pot as a house warming gift. Please make yourself a virtual cup of tea.</p>
<p>And the nasty lender has lost your interest! Serves the right!</p>