WWYD - received grant money that now they do not want to pay out

I need help and advice. As some of you know my husband and I have been trying to close on a house since May, we have put money into the house in order to satisfy the FHA loan requirements, we have also put notice to our landlord and should be out of there the end of this month (possibly can extend) we have put many hours of time into the purchase.

Now when we are finally booking closing dates the program we had enrolled in, satisfied all the requirements, received a certificate stating they were financially backing us $20K does not want to give us the funds. Yes i will repeat it the Town of Babylon/LIHP does not want to give us the funds they promised our bank they would.

This is $20,000, they are now stating we are making more then the program allows because of projected incomes stated on our mortgage paper work done by the mortgage people. SO in a nutshell we were okay a few months ago they reviewed our paperwork signed off on everything, told the bank we are set and getting the funds and now when we need the funds you claim we make too much ?

If we are making too much then why didn't you put us in the next program for $15,000 grant - i guess the real story is YOU DO NOT HAVE THE MONEY TO GIVE OUT!

SO my question what should i do? What would you do?

Re: WWYD - received grant money that now they do not want to pay out

I would fight it. I don't know how I would fight it bc I don't know the program you are referring to, but I wouldn't walk away from that money quietly.

Re: WWYD - received grant money that now they do not want to pay out

I would compare the information that you gave the TOB with the information that the mortgage company has. Hopefully somewhere someone made a math mistake.

I know the town programs are very strict about their income requirements, but hopefully the Town just has the wrong income amount down.

Re: WWYD - received grant money that now they do not want to pay out

i wonder if your mortgage company inflated your incomes.

Re: WWYD - received grant money that now they do not want to pay out

the mortgage co are standing by their numbers the town said. BUT we just went to payroll departments and got our YTD and estimated out what we will be earning until the end of the year we are still at that limit that we could receive the funds. We are on the line but not over it and they claim its because DH can earn more OT. DH's company sent a letter stating he is NOT required to this OT so he stops we are on the line of okay.

I just don't get it though, why tell you your guaranteed the funds then go "oh we are evaluated your income again right before you close to make sure your okay" but NEVER tell anyone your doing this. AND never had they informed us that the look at the mortgage paper work to see what they based our income on. I would of know this was coming at least instead of being blindsided with one week to go.

I think I should write a letter to Ballone stating his program rips away funds after guaranteeing them to people.

Re: WWYD - received grant money that now they do not want to pay out

Go visit Bellone in person. go to his office. RUN there!! i'd be LIVID!!!!!!!!!!

that's just awful!

Re: WWYD - received grant money that now they do not want to pay out

i would 1000% try to fight it....

will you still be able to get a mortgage without the grant? i would check to make sure that you can still close on the house without the grant $ just in case you love the house enough to still go for it...

can your real estate lawyer help you guys with this?

Re: WWYD - received grant money that now they do not want to pay out

honestly- call 7 on your side or one of those- I think that the town will change their tune if you embarass the shiiittt out of them- they should be ashamed of themselves!

Re: WWYD - received grant money that now they do not want to pay out

My mil had an issue with the housing partnership. She sent letters to the president threatning to sue them. I would go over there and freak out on them. Can you find out if you can at least get the 15k

Re: WWYD - received grant money that now they do not want to pay out

OMG that is horrible. I cannot believe that they are trying to do this to you at this point! I would do all of the things everyone mentioned above! I really hope it works out and you can still close!

Re: WWYD - received grant money that now they do not want to pay out

The interesting thing is I work for a public relations office for the college and I have all these numbers just sitting here and I am just trying to figure out if i want to cause so much trouble but we are running out of time and we would lose the house and i am not willing to do that.

Re: WWYD - received grant money that now they do not want to pay out

This happened to my DH and I with the same program. Even though I told them flat out I how much I made they said apply anyway. Low and behold we made too much.

I wrote a NASTY letter to Steve Bellone.

Someone who works with the LIHP in the town called me back. She said she was sorry. So I wasted 75 dollars and you are sorry.

Then she told me about the Revitilization program which we would qualifiy. LUCKILY,... I called first and even though the paper says we qualify....we don't!


I told the person who called that it is extremely ANNOYING and MISLEADING that the LIHP bases the decision on your projected income. If I had only sent in the check where my DH didn't get over time....I would have been fine!!!