backing out of mortgage

Guest 0.10 Dollars($)

i recently was looking to refinance with citi mortgage who is my current lender .i signed the application and was looking to cash out an extra fifty thousand dollars.the loan was not closed and and they were asking for a current home owners policy to close the loan.i didn't give them the info.at that time i had second thoughts and asked to kill the loan and asked what fees i owed.The broker refused to give me the total and The loan was then quickly approved and now they are looking for the full closing fees of 7600.00.are they entitled to them?what should i do?

sara · Posted: Wed Sep 17, 2008 4:51 am Post subject: RE:

So you mean you didn't want to close on the loan? if that's what you decided, why did the company approve you?

The closing costs look quite high. Did you ever sign any written statement with them?

pixelfocus · Joined: 17 Sep 2008 Posts: 1 1.36 Dollars($)

They are probably trying to make your loans more profitable. Just be really careful about the loan term, rates, payoff penalties and any other possible costs. Ask them what they charge now for escrow services, pmi (if you have), and what the fees will be.

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gmakerley · Posted: Wed Sep 17, 2008 7:10 am Post subject:

ray, if you don't want to close, you simply don't have to. the only fee you ought to owe to the lender at this time would be for appraisal, or any other "third-party" fees they've paid out. by third-party, i mean any work that was done by an entity other than the bank (for example, the appraisal firm) to try to get your loan approved and to closing.

for some reason, you're being held hostage with unreasonableness. fight like mad, because they cannot force you to close on that loan, nor can they force you to pay fees directly to themselves.

0.10 Dollars($)

Google “rescission” as in the Federal Truth in Lending Act. Key is that you sign the refinance paperwork at the title company. You will be given a statement of your rights. Immediately sign saying you wish to rescind and deliver to lender. You will promptly receive a check for any front-end costs you’ve paid plus you owe nada. Get some form of proof of delivery. You may have to “prompt” the broker a bit to get things moving. No, I don’t like it when it happens to me but the law is the law.

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