Posted on 06/23/2004 9:06:30 AM PDT by GYPSY286
Contacted a company about refinancing on May 2nd. After 2 conversations, I was told that it could be done (my credit isn't A1); that I could get a reduced interest rate and get rid of the ARM that I currently have. Was told that if my appraisal came in at a certain amount or better, we could close within 19 days of him receiving the appraisal. The appraisal company held things up and he didn't get it until 5/21. In the meantime, he overnighted me a package containg a "good faith estimate". Nothing on the sheet was correct except for my name and address. The loan amount was wrong (too low), the rate (several points higher), the term was wrong and it was marked ARM which I did not want. I contacted him and he told me that I should ignore the paperwork, that it was only sent to me as a matter of law, that I could throw it away.
On June 4, I received an email from him (no phone calls)congratulating me on my loan approval. I did not know for how much, how long, or at what rate. It took me 3 days to catch him by phone to get the numbers. He promised that the paperwork would be completed the following week (while he was on vacation) and that I would close around June 11th.
It is now June 23, and I am still waiting for a closing. He has not sent me any correct paperwork, no good faith estimate on closing costs or a commitment letter. During the conversation about numbers, he did mention that there was just enough money for me to close - no cash out and that he would not be charging me his fee because there wasn't enough money there. Since then, he has not return my calls nor responded to my emails.
He received the payoff from my bank on 6/11. I don't know how long the payoff amount is good for. He seems to be purposely waiting to close and I don't know why. Since I didn't close on the June 11 (like he said), didn't close on June 18 (like he said) my bank is now calling me for my monthly payment.
Do I have any recourse here? I spent $300 for an appraisal and now will be faced with interest/penalties from my bank for not making my June payment. Should I contact the bank commmissioner? The company is in California and I'm in Pennsylvania.
Watch out. He sounds like he's screwing you with the interest rate, etc. I would looks for someone else and be very careful. You might go to lendingtree.com and see if you can find someone else, they might also be able to use your apprasial that you obtained. Just my .02. but this guy sounds crooked.
coop
First contact your bank and make arrangements to pay your June payment now.
No need for explanations and such just be business-like and do not promise something you are not sure you can do.
Second run away from this loan company that is scaming you as fast as you can. If they sent you paperwork with wrong info they are probably breaking the law and may drag you down with them.
Immediately drop this other group and go with a reputable lending firm like Countrywide, Bedford, Ditech, etc.
Don't waste a moment's more energy with this other firm. There are a hundred good ones out there who can close quickly since you already have an appraisal.
The appraisal is good for 90 days.
As someone said, lendingtree.com is a good source. I just got a line of credit on my house, and, amazingly, Citibank beat eleven other loan companies and banks, with better terms.
Mortgage brokers in California, like real estate agents and brokers, are licensed and regulated by the state. They have a state agency under the Dept of Consumer Affairs you can file a formal complaint with if the guy's acting in an unethical manner.
You paid for the appraisal. It's your property, so be sure to get a copy of it. If you decide to go with another mortgage broker, you probably won't need to get another one if you act within a 60-90 day period.
Take at least a day and call up a few other local brokers and/or banks to chat about your re-fi. There are plenty of honest folks out there who would love to have your busness and they won't jack you around. Good luck.
Offer your current bank to adjust your rate and term before you leave them also is another option that many homeowners don't know about.
pretty good advice from fellow freepers...a "good appraisal" is the key to everything...pay your back payments...immediately..on the GFE nothing really matters until you get final numbers, but it should at least be fairly accurate...this guy didnt get a big enough appraisal for your approved LTV (loan to value) and he knows it and you probably wont ever hear from him again, he mis-estimated your potential loan amount and when the appraisal came in low, he knew it was dead in the water. Go elsewhere, some firms will pay for your new appraisal, some will roll the appraisal costs into the loan, a good loan officer can pull comps him self or look at a weak appraisal and find where the appraiser (often!) didnt even go out to the house or the neighborhood and just threw numbers together.....
good luck!
The CApt.
FYI since you have not closed you should have made your current payment.
Normally you get floated a month after you close so had you closed in May when you said your 1st on new mort. would be in July.
Contact an attorney immediately.
I do mortgages for a living and have been doing them for 7 years. Here are my thoughts.
You are SOL on the $300 for the appraisal. The service paid for was provided. Others have suggested that you can use that appraisal with another lender. You can NOT do that since the appraisal technically/legally does not belong to you, but by the investor or mortgage company who was going to fund your loan. You can possibly use it if you can get the investor or mortgage company to give you and the appraiser "appraisal release letter" to allow it to be reassigned to a new investor.
You are also SOL on the interest/penalties with your being late on your current mortgage. The bank doesn't care, and rightfully so why you didnt make your payment. Get it paid ASAP.
Feel free to FReepmail me with any questions you have or if I can help you in any way. I can not lend in PA and do not know any lenders in PA other than Parkvale Bank (who I formerly worked for), but they (at that time) stuck to A paper which from what you have said you do not qualify for.
Citimortgage is my work horse. I send a vast majority of my business to them. They always have the best rates for nearly all programs. But their turn times are the slowest in the industry and their customer service sucks ass. If they didn't have such strong rates I would never use them. But in the mortgage world, rates are what matters.
NO ATTORNEY'S NEEDED HERE. RATES ARE LOWER NOW THAN THE LAST 3 MONTHS. APPRAISAL IS GOOD FOR 6 MONTHS. DO NOT USE DITECH, RATES ARE WAY TO HIGH. CALL AROUND LOCALLY, DO NOT LET THEM RUN YOUR CREDIT,ASK ABOUT FEES AND RATES. I AM A MORTGAGE BROKER IN SAN DIEGO. NEED QUESTIONS ANSWERED, EMAIL ME
If he/she is currently a good customer with current bank they will charge her the late fee which is a nominal figure as it should be , mine is 23 or so after the 15th of the month and not report it to a credit agency since its not 30 days past due.
PAY THAT IMMEDIATELY so you are not past the 30 day late : )
Actually, thats not true. It is the property of the investor that was going to fund the loan. You have a right to it post closing.
Well, they were slow, but I didn't care as long as I could lock in the rate.
Now if I could just get my wife to DECIDE, once and for all, on a final redecorating plan for the kitchen.
Been there, done that, and it was quite a surprise.
I AM A MORTGAGE BROKER IN SAN DIEGO.
I don't know what lenders you use, but 3 months ago I was offering rates far, far lower than what is available today.
A lot of people are. I have a form that explains it and I collect their credit card info for the cost of the appraisal. The form tells them that if the loan does not close their card will be charged. If it closes it will be an itemized cost on the HUD. Or they can pay the appraiser at the door.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.