I hate my mortgage company!
Moms View Message Board: General Discussion: Archive May 2004:
I hate my mortgage company!
Last year we contacted a mortgage company to finance us building our home. It was on May 3. We were told that we should be able to close by the end of May. We had a lot of problems with the girl doing the paperwork. She lost some, she misspelled everything, etc.. We didnt close on by the end of May. It got drawn out for over 2.5 months until we closed in July.
During that time, my builder did not lock in any prices because he wasnt sure they were really financing us as we had no closing date even scheduled and the price of materials went up... way up. In fact it was $5,000 over what our original contract was. (Our builder's contractor was good for 30 days)
So we had to pay out of our pockets this extra money. Luckily the builder is from our church and let us wait until we got our tax refund.
Anyhow, the mortgage company really messed us up. Our paperwork at closing was all screwed up with incorrect names and home address. It was 2 inches thick of paperwork that we had to go through and change and initial.
They converted our loan mid month and so we had basically 2 payments due within 2 weeks of each other. (our building loan was due on the 15th and our regular loan is now due on 1st)
They lost paperworks showing we had insurance that they made unreasonably high so they bought us extra insurance and took out of our escrow account.
Many more things were done too... But I am so unhappy with them, I am refinancing. When I do, I am wondering if I have any action to take against them to recover any of the money we were out because of them delaying our closing and causing all the problems they did?
Hmmmm, this could be tricky. Dh is a Mortgage broaker and I can run this by him if you want me too. He won't be home until late tonight though. My guess (and it is only that) is that you won't be able to do anything about all of that. Hind sight is always 20/20, but if I were you, I would have demanded things be done with no charge at the time or I would have pulled the loan and started over with someone new. USUALLY, dh can take application and close in less than 30 days. Now, what all happened that made the thing take 2 and a half months?? Was the house done on time? Was this a construction loan or a purchase? From waht you have said, I am guessing a purchase after build?? Again, was the house done on time? If you let me know exactly what happened to make it take so long, I can run it by dh if you like!!
Vicki, this was a construction loan that turned into a regular mortgage upon completion.
They did all the wrong stuff just getting the original construction loan.
Here is a detailed list of things they did wrong and that I sent them certified mail after we started the house. I received no response from the whatsoever.
1. Time. The loan was supposed to close in 30 - 45 days. Paperwork we received set a tentative closing date as May 28, 2003. We closed in 10 weeks - July 11, 2003.
2. We would call XXXX XXXXX to ask about the status of the loan and she would not return our calls. If we did get a hold of her, she would tell us that closing would be "next week".
3 Ms. XXXXX told us that she could be reached at home, and gave us a number that turned out to be a fax number and not her home number.
4. No appraisal was done until 6 weeks after initial paperwork was signed by us to proceed with loan. At that time, the appraiser called us and told us that he had no paperwork (address, contracts, plans, or anything needed that we had already given Ms.XXXXX) on the appraisal and that there was a "Rush" on this job.
5. Ms. XXXXX did not send all the paperwork needed to Ms. BBBBBBB to complete our loan process. We had contractors quotes for additional money we needed to borrow and Ms. XXXXX never sent these to Ms. BBBBBB so we could obtain the additional financing needed. These were for Septic and driveway.
6. The final closing was held up because of specific codes that were needed for our loan to be given at the 85/10/5. Again, this is due to Ms. XXXXX not providing the codes when first sending in the application.
7. Ms. XXXXX did not even contact the contractor for him to complete his information, until nearly 6 weeks into the process and blamed it on her new Office Assistant.
8. The closing in itself was not a pleasant experience. The closer, Ms. RRRRR, from XYZ Realty Settlement did a good job. But the paperwork was terrible. Already being that this had quite a bit of papers to be signed because of this being a new construction, mortgage and home equity loan, we had extra steps because every page contained the error of my name being incorrectly spelled and the property address being incorrect. On the initial paperwork I completed, the information was incorrect also. But I corrected all the mistakes and initialed them and sent them to your Plano office. I feel these errors should of been caught on the paperwork I corrected and sent in to Plano and the corrections made on our closing papers.
9. When I first talked to Ms. XXXX about this loan. We decided we wanted to mortgage 85% of the loan and get a home equity loan for 15% and our down was the 5% we already had invested. When we came to closing, we found that our home equity loan was a adjustable line which could go up. I told Ms. XXXX in the beginning I wanted a loan with a fixed rate. She had told me we were getting a fixed rate of 7% on the home equity loan for 15 years. Now we have an adjustable rate for 25 years. Because we already had waiting over 2 months to close on this loan, we proceeded and signed the papers. But fully intending to look at refinancing for a fixed equity loan when our home is completed.
10. Because of the delay in this closing and the fact that our original contract was signed in April, our contractor could not secure the quote he originally gave us for the completion of our construction. During the time, the price of materials went up and now the construction is costing us @ $5,000 more then what we originally were to spend on this home. We will have to take some cuts in the construction by reducing some of the things we had wanted in our home. For instance, my kitchen will not be as nice as it would have been. I will not be able to use my full kitchen allowance that was in the contract. And at the end of construction, we will be paying the contractor any additional monies owed to him that came over the contract price. Steven JJJJJJ of JJJJJ Construction, is our contractor. We find him to be a very honest business man that we have known through church. He may be reached at (xxx) xxx-xxxx. He said he would gladly give you a list of his suppliers names/address/phone numbers so that you may contact them to verify the price increases.
Plus the charging our escrow account $300 because they didnt think we had enough insurance... which we did.
Sorry that this is so long but I am just so upset with this company and how it treated us. I would love to recover the money we used from income tax so we could do our back deck and finish our dd's bedroom in the basement.
I just logged on again and dh is on a video seminar for the rest of the day at work. Have you ever talked to her supervisor about all of this a point blank asked to be compinsated for their mistakes? My opinion, you should have to be out any money because of their mistakes. I know that when we built our home, they were running very close to the date it had to be completed. We made several call to our builders and talked to many supervisors and told them point blank that if they ran over the time, they would be the ones paying the fees for us to extend our rate lock on our mortgage. Well, they worked MANY late nights and got it completed two days before they had to. LOL I guess what I am saying is don't take this without a fight. I don't know what legal action you might have, but I would sure be talking to some people at that mortgage company first!
I sent a letter to the people at the office in Plano Texas. They were the ones doing all the paperwork for closing. The local girl works here in PA. I had thought by sending a formal letter to them certified mail, they would respond but they didn't. It was even sent to the Assistant manager in Texas. Ours was a closing before we could even begin any work. We did the construction, home equity and final mortgage in July before we started to break ground. Which they told us we were not allowed to do until we closed.
I will say I even called their customer service hotline and noone would listen to me except to say sorry you had problems.
I am just hoping to see if there is a way to get some of the $$ back and I'm even willing to contact an attorney if need be. Its awful how its hurt us financially because of them screwing up.
If you do run it by your dh, I'd appreciate it. Thanks.
My guess is that you won't have any legal recourse, but I will run it by dh to see what he says. Of course, he is on the mortgage side of it, so you might be better off contacting an attorney and seeing what they have to say reguardless. The reason I am saying that you won't have anything legal that you can do is that this all happened BEFORE you signed any documents. You COULD have pulled that loan and started with someone else. I know that would have been a pain in the rump, but you COULD have. You also agreed to everything by signing those last papers. You knew at that time that you were going to have the extra expenses and still decided to go ahead with it. The choice all along was yours. I realize and understand that by stopping things, you might have lost your house and I completely understand what you did and why and I more than likely would have done the same thing that you did. Please don't think I am of the opinion that you did anything wrong. I am just saying what I think to be the case based on past stories that dh has told me. I have not talked with him about any of your story at all. Again, he is in mortgages and I am just his wife. If you want to be sure, I would go ahead and run this all by an attorney. I would think you could just put a phone call in and ask a few questions with no charge???
Thanks Vicki. I will contact our attorney and see what he thinks.
Dh basically said the same thing that I thought to be the case. I think contacting your attorney is the best choice for you at this point. Please let me know what he/she says. I am interested in their response! Good Luck, I know how frustrating things like this are!!
Ok.. Thanks again Vicki.
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