Potential pitfalls of two lenders working on the same FHA mortgage loan?

I don't want to get into the details in this forum, but long tale small:
The underwriter who was preparing my loan didn't get it done in time for closing (they've had the paperwork for over a month and cleared all conditions a while ago) – we have yet to receive the "clear to close".
They have also been very unresponsive to my broker (even on the scheduled closing date!).
I extended my closing date another week but I'm concerned the loan still isn't going to be finished.
My broker and I chose to push this through another lender which guaranteed he could have it done in a week.
Essentially, we are going to have the two lenders race – the fastest is the one I'll use for the loan and finally go to closing.
The second lender is aware he is racing the first one.
Are there any potential pitfalls (besides this is terrible business for my broker)?
I'm worried FHA will see two loans being worked on the same property and that could mess something up?
We have to get this done next week or I'm homeless…
I should add we are well qualified for this loan and there is no reason we shouldn't get it.

Please, no solicitation responses.

Related FHA and HUD Posts

Tags: bad business, closing date, FHA, FHA Approved Lenders, homeless, lenders, loans, paperwork, potential pitfalls, quot, solicitation responses, underwriter

This entry was posted on Wednesday, June 10th, 2009 at 6:02 am and is filed under FHA Approved Lenders. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Top incoming search terms for this post

One Response to “Potential pitfalls of two lenders working on the same FHA mortgage loan?”

Noneya says:

June 10, 2009 at 6:02 am

You are going to have issues….you have an assigned FHA case # and an appraisal which would have to be assigned to the second lender in order for him to get you closed. The release of the case # has to come from the first lender…..all of this on top of really getting your file through underwriting…..I don't see any of this happening in 1 week

Tags: bad business, closing date, FHA, homeless, lenders, loans, paperwork, potential pitfalls, quot, solicitation responses, underwriter,

Related results on Potential pitfalls of two lenders working on the same FHA mortgage loan?

Stop Foreclosure ? Foreclosure Process | Live Better with Dr. Jo
I actually work with lenders and do loan audits and loan restructuring for clients, no two are the same. JoAnna Jensen. taychray123 says: March 21, 2010 at 11:26 am. so if you dont make your payment no biggie?? TheMortgageDoctors says: March 21, 2010 at 11:40 am ... To all people who are in the process or potential going to foreclosure need to know this: 1. The current value of your home 2. If you are are upside down (most people are because of the drop in value) ...

Late Mortgage Payments Sabotage PMI CancellationLate Mortgage ...
If you pay an extra amount over and above the monthly payment so that the loan balance falls below 80% of original value. The act excluded FHA loans made before 2001. Mortgage insurance on those loans can never be canceled. ... That's not covered in the Homeowners Protection Act, but most lenders will listen to a request to cancel the PMI... but not during the first two years of the loan. After two years the lender will require that the value of the home has increased to ...

Home Foreclosures York Pa | FHA Foreclosures
In a notice to lenders, FHA Commissioner David H. Stevens said the agency will provide mortgage insurance for some shopping in the vendor had closed the property for less than 90 days before. ... "For now, a potential home buyer can purchase a property selling for $ 100000 and FHA financing $ 96500, leaving the buyer to pay the remaining $ 3500. Once this new policy applies, a new home buyer with a loan that would fight to pay $ 10000 upfront, "said TJ Noye, ...

FHA Home Mortgage Loan Interest Rates