ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

CROOK ALERT! PULTE HOMES' PRE-APPROVED MORTGAGE DEALS

Updated on October 23, 2013

Preapproved: Well it Sounded Good but it Turned into Sleaze

In her column in the NYTimes February 6, 2011, Gretchen Morgenson tells the sad tale of Melissa Calderone's recent nightmarish experience when she attempted to buy a home in Windemere, Florida, from Pulte Homes, the nation's largest home builder.

Ms. Calderone was attracted to Pulte's Windemere development to be near her parents and a good school system for her children. Her local bank approved her application for a mortgage loan but a Pulte saleswoman offered her a $4,000 credit toward closing costs if she took our a loan with Pulte's banking unit. Ms. Calderone agreed and made a $20,000 earnest money deposit with Pulte and set aside and additional $80,000 for a downpanment on the $347,000 Pulte house. She enrolled her children in Windemere schools and waited for the closing date. Her agreement with Pulte provided that her $20,000 would be refunded if she canceled the deal within 45 days. Sixty-seven days after she signed up with Pulte, the builder's banking unit began to raise issues concerning her mortgage application which had been preapproved by the lender. For three months Calderone continued to respond to questions regarding her application. During this period nothing had changed in her financial situation. The closing date passed with no contact from Pulte. And in September, unsure whether her children could enroll in the Windemere schools, Calderone canceled her purchase contract and requested a refund of her $20,000 deposit. Pulte declined, claiming Calderone hadn't lived up to her obligations in the contract.

Ms. Calderone is not the only Pulte buyer who has experienced this kind of run-around. Last year the attorney general of Arizona filed a suit claiming that Pulte had deceived borrowers who thought their mortgages had been approved, when in fact they had not, and as a result lost their deposits ranging from $2500 to $25,000 each.

Pulte agreed to settle the lawsuit for $1.1 million, of course neither denying or admitting guilt. According to the Arizona Attorney General’s Office, Pulte’s representatives will not represent or imply that they are able to “pre-qualify” Arizona consumers for home loans.

Gretchen Morgenson's article is linked below.

Comments

    0 of 8192 characters used
    Post Comment

    • Ralph Deeds profile imageAUTHOR

      Ralph Deeds 

      4 years ago from Birmingham, Michigan

      Thanks for your comment. Sorry for your problems.

    • profile image

      Jen 

      4 years ago

      I can also say we are in the same boat losing our deposit. They originally told us that we were not approved then we asked for our money back and then, Bam...we were approved. The house didn't even break ground and was months behind when we had to back out due to losing our current living situation. Of course Pulte not being on time with building will not get you your money back. We learned a big lesson on bad mortgage lending and pulte practices. This was going to be our second pulte home. Never again will we deal with such disgusting practices. My advice is if you go through Pulte please get a realtor and go through your own bank.

    • Ralph Deeds profile imageAUTHOR

      Ralph Deeds 

      4 years ago from Birmingham, Michigan

      Sorry to hear that. Thanks for your comment on your bad experience with Pulte.

    • profile image

      Patricia 

      4 years ago

      Get the word out Ralph! They just took our $15,000!

    • Ralph Deeds profile imageAUTHOR

      Ralph Deeds 

      7 years ago from Birmingham, Michigan

      We're getting back to survival of the fittest. Thanks for your comment.

    • Jean Bakula profile image

      Jean Bakula 

      7 years ago from New Jersey

      Hello Ralph,

      When the word "Pulte" caught my eye, I had to write. My husband and I activally fought against an active senior complex that was to be 2500 units on what used to be a sandpit in Wanaque, Northern New Jersey, built by Pulte. It is directly across the road from a Reservoir, and the land should have been protected by a law called The Highlands Act, passed about 8 yrs ago, but now stricken down by Chris Christie, our new Gov. Anyway, we did manage to have the amount of units lowered to 775. Our town really didn't have the sewer capacity, roads or services needed for all these people, and the land actually had a sewage treatment plant at the end of the road, something the realtors hid from the buyers. People bought the units for a low price as it's not very developed here. But of course, the smell of the sewage plant is an ongoing problem. The town broke it's own ordinances to build the units 4 stories high, making an expensive, new fire truck a neccesity. Pulte was supposed to pay for the million dollar fire truck, but never did. Our town changed radically with all the extra people, and all our services are stressed by them. Pulte jumped on the active senior--age 55 and up--bandwagon fast, and I'm sure as soon as the economy gets better, we'll be fighting them again. They cannot be trusted!

    • alinadelea profile image

      alinadelea 

      7 years ago

      Good article,thanks.

    • Julie2 profile image

      Julie2 

      7 years ago from New York City

      That is rather frightening. My husband and I purchased a Pulte home in AZ last year when we made our move from the East Coast. I'm going to tell him to read this article when he gets home. Thanks for the heads up...

    • LillyGrillzit profile image

      Lori J Latimer 

      7 years ago from The River Valley, Arkansas

      Thank you for this alert!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)