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Guest

It is a long story, so i will spare the detail....I have a contract on a house. I want to back out of my mortgage application, the title work has been done and I paid for the appraisal, but the owner's offered me full owner financing, and I want to take them up on their offer. After I broke the news to my loan officer, she said that everything was set to close on Thurs. (this is news to me, b/c I haven't even sent in any of my underwriting conditions), and then she said she would send me a bill for their services. Will I have to pay? The loan hasn't closed, and my loan hasn't even been approved. Should I just ignore the threats? HELP!!

If it helps I am in NC

jnoa · Posted: Tue Jun 23, 2009 11:26 am Post subject: advice

You do not have to go with that company, you are not under an obligation, though they may try and charge you for services such as an application fee but that would depend on what the broker told you their costs would be during your conversation with them.

Guest

My loan officer did not tell me of any fees for withdrawing my application. I looked back through the loan docs I signed and there was nothing written in there either. I know my loan officer worked hard on this, but I found this better offer. I mean it's her job to do loan apps. So is she just threatening me b/c she is mad that she won't make her commission off me?

I am still buying the house, just not through a finance company.

elnoralittle · Posted: Tue Jun 23, 2009 11:35 am Post subject:

there is a document some lenders make you sign. On it they may disclose that they have the right to charge you up to 1 point for services if the loan was completely approved.
Most lenders, if they lose a deal, hope that you pay for the appraisal b/c if you don't the loan officer usually pays for this out of their own pocket.
Chances are if you cancel the deal, the Loan officer doesn't really have recourse.
I am a bit taken back that the loan officer would use threats to close a deal rather than explain the benefits of lender financing.
The first benefit is a secure rate, escrows are set in place to pay for taxes and insurance. You have clear title that is insured by a title company.
In order for a seller to offer you seller financing, they must own the property freely, or you are putting enough down payment that they can pay off the mortgage. You still need an attorney to draw up closing documents, prepare the deed to make sure it is recorded in your name. And you should still obtain title insurance that protects you from any things that a title search didn't yeild in advance.

Good Luck. Embarassed

Guest

Thanks Elnora,
I am closing on the owner financing tomorrow. I am having the title work done and purchasing title insurance. The owners own the home free and clear. They offered me 6% for 30 years. My payments will be $479 for the life of the loan. I have a real estate attorney working on everything for me.

My loan officer gave me a 6% rate also, plus I would have to pay mortgage insurance, plus pay all the loan fees at closing, and I just decided the owner financing would be a better deal for me.

I did not sign any type of paper that said they had the right to charge me if i terminated my contract.

elnoralittle · Posted: Tue Jun 23, 2009 11:43 am Post subject:

It would be in fine print on an interest rate and lock in policy. Check there.

If not, I say go for it.
The courteous thing to do though, is pay the lender for the appraisal you requested be completed in correspondance with your loan application.
Otherwise, your loan officer has to pay that out of their own pocket.

Thanks.

Guest

I already paid for the appraisal out of my pocket, but my loan officer never sent me a copy.

I never signed an interest rate lock in policy...I signed my good faith estimate. Then my loan officer called me and said the rates were up so she just asked me over the phone if 6% would be okay. My good faith estimate was never updated.

So I guess I shouldn't worry about it and now I can be happy that I will own a home tomorrow!

elnoralittle · Posted: Tue Jun 23, 2009 12:00 pm Post subject:

yes, but you are entitled to a copy of the appraisal, HVACC rules ensure that. The lender is required to give you a copy.

Guest

I need some help. I am a first time homebuyer and went through my local bank to get financing. My grandma co-signed for me, as I just graduated college 1 month ago today. From day 1, my loan officer has made this process tedious and unfriendly. First of all, he discussed specifics on my credit bureau to my grandma (like credit card balances, how many credit cards, etc.) without my consent or without me being present. I currently work in a business office at a car dealership so I am pretty fluent in indirect lending, just not home lending and I know this would totally not fly as far as privacy goes. He then proceeded to contact my employer without my consent and slowly began only talking to my employer about specifics of my pay instead of requesting the information from me first. I closed on the home May 24 and now my loan officer is saying that he needs my diploma because my loan is getting audited. What are my rights here? Why would he need my diploma if I have already shown transcripts stating that I was a full time student since 2006 to show the lapse in employment history? I physically do not even have my diploma yet, and the loan officer is well aware of this. I am to the point where I don't even want the home anymore. I'd rather just live with my parents. Can I get my loan unwound? can I back out of my purchase? please help!

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

youre entitled to seek financing options from multiple sources, if your lender has jumped rhe gun by assuming your agreement to their term, more fool them.

elnoralittle · Posted: Thu Jun 03, 2010 5:44 am Post subject:

Kylie,
I am assuming you did an FHA loan. You are right on one thing, your lender should not have discussed your credit with your grand mother.
As far as the employment goes, especially in your line of work, a full verification of salary was probably needed. you sign and authorization form in lending packets that allow a lender to verify the information you provided.
The audit is probably being done by the investor. Typically, loans are sold by the lender to the servicing institution, such as big companies like Wells or BOA. Very few companies house their own loans. that being said, the processor and the underwriter should have asked for your degree prior to closing. there isn't much recourse the lender has with you if you don't provide your degree, they will just have to service the loan. But if you are unsatisfied with them...I would think you might like it if your loan were to be with another company. I would provide the degree. It is required under FHA if you have not been in the same line of work for 2 years or you have graduated and just entered the work force. If you don't have the degree, an online print out of your transcript should suffice, any one who tells you different...isn't thinking with common sense. If you have already closed on the house, I am sorry, but you own the home and are liable for it. Just because you signed loan application docs that doesn't mean you settled, but if you went to the closing table with the seller and signed a deed and note...it's a done deal.
If you have any more questions...email back.

gmakerley · Posted: Thu Jun 03, 2010 8:23 am Post subject:

Kylie, Elnora has laid it out pretty specifically for you, and I am in agreement. Your loan officer went way over the line in discussing personal items with your grandmother, and I think it might make you feel better if you at least register some sort of complaint with his supervisor.

As for the diploma, yes indeed, that's something you'll have to come up with. If you can't, as Elnora suggested, you can obtain something of an alternative nature and present that. Servicers aren't going to want to accept a substitute, but if that's all you have, that's all you have. See if you can find out what the deadline is on obtaining that information. In the meantime, give them what you can.

Again, as Elnora pointed out, once you close, you own the home. Moving back in with family isn't an option unless you want to destroy your credit and your credibility. Be careful - getting disgusted with the process isn't a good enought reason for you to simply walk away and call it a day.

Hang in there, and forget that loan officer if you can. The servicer needs what it needs, and there's nothing that can change that. If you're able to pay the mortgage, do so and make the best of the rest of it.

Guest

Thanks for the advice! I had given the loan officer my transcripts showing I have completed all the courses and a tuition bill showing where I paid a graduation fee. And prior to closing, the loan officer told me that these documents I provided would work. I have a regular 30 year fixed loan from a local bank and they have sold my loan to Freddie Mac. I am keeping the house. I just wanted to see what sort of recourse the loan officer/bank had if I just dont surrender my diploma. I am angry enough where I might just take that route! Smile

thanks for the advice!

gmakerley · Posted: Sat Jun 19, 2010 8:45 am Post subject:

You need to kick the loan officer to the curb, and find someone in that organization who'll work with you. Frankly, it ought to be a fairly easy process for you to provide them with something that will be satisfactory. Angering them won't serve you very well, any more than angering you has made their lives easier. Somebody in this scenario has to give, and the odds are that they can make your life more miserable than you can make theirs. In other words, work with them and see if you can't give them something that will satisfy their needs. But don't speak with that LO again, as you've been down that road too often and too long.

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