National City Mortgage

I am not a customer of National City, however I am arguably the one most affected by their complete incompetence and their complete lack of a sense of urgency. Their customer, who entered into a real estate sales agreement with me (the seller), received an "approval certification" letter explaining that, based on an initial review, he was eligible for a single-family FHA purchase (203K) mortgage loan in the amount of $142,373. According to the sales agreement, the buyer's mortgage commitment date was to be on or before 4/6/09, and settlement was to be on or before 4/13/09. As I understand it, the buyer made his mortgage application with National City Mortgage in a timely manner, shortly after entering into the sales agreement on 2/28/09. The mortgage commitment date quickly came and went, and an appraisal of my property had not even been ordered. I was told by the buyer's real estate agent that many phone calls to a loan officer named Karen had not been returned, and that she had not informed them in a timely manner that there were some documents (regarding contractor estimates and information on work to be completed) that had to be completed. Many more weeks had passed, during which the buyer and his real estate agent had a falling out with Karen and contemplated making application with another lender. Eventually Mike Armao took over as the loan officer. Many more weeks had passed, and still it seemed no progress was being made. Phone calls were still not being returned in a timely manner. There seemed to be absolutely no sense of urgency, even though everybody knew that by now, we were several months beyond the contractual settlement date. When an appraiser finally came to the property, he was not even aware that it was a 203K loan, and he told me he was not given any contractor estimates, which he would need to complete the appraisal. He informed me that there would likely be more delays. Then most recently, nearly three months beyond the original settlement date, the buyers is finally made aware of a requirement that he have a certain amount of equity in an existing property. Today, 7/14/09, I was told that the buyer does not have enough money to bring his equity in his existing property up to a required level AND have enough down money to purchase my property. I cannot understand how the loan officers at National City Mortgage could've been so lax throughout the entire process. There is no reason why it should've taken three or four months for the buyer to find out he had to have a certain amount of equity in his existing property. If the loan officers do not know their bank's products, they shouldn't offer them to their customers. I also don't understand why National City Mortgage would provide their customer with a pre-approval letter, stating he is pre-approved specifically for a 203K loan in the amount of $142,373, not knowing that he eventually wouldn't even be able to get a 203k loan for $134,050!