Posted on: 24th Jun, 2008 10:09 pm
I got a one time close construction loan about 7 months ago. So now that the house is almost finished we found out that First Horizon has gone in to bankruptcy and our broker is telling us that there is nothing we can do but find another lender, even though we have been through closing with first horizon and they have forked out all the money for construction. I am being told we have to find another lender and pay closing costs again in the amount of about 6000.00. Seems how first horizon already guaranteed the loan can I make them stick to the contract, and then they can sell the loan if they want. Thanks in advance any help you can offer.
I would contact the bank. The broker may be looking for another loan?
He may be correct but you will always question it if you dont find out for yourself. Just because they are BK doesnt mean there isnt someone to talk to
Brian
He may be correct but you will always question it if you dont find out for yourself. Just because they are BK doesnt mean there isnt someone to talk to
Brian
WaltonJayson,
When a bank files bankruptcy they are out of commission but this usually means that the mortgage lenders book of mortgages will be sold at a steep discount to another bank or company willing to take the risk. At that stage the you the borrower will receive a letter stating that their mortgage is now being held by a different company. You will start sending mortgage payments to this new company.
Consult your bank as Brian stated for clarification.
Best Regards,
Jeanette Smith
Mortgage Planner
Union MOrtgage Group
When a bank files bankruptcy they are out of commission but this usually means that the mortgage lenders book of mortgages will be sold at a steep discount to another bank or company willing to take the risk. At that stage the you the borrower will receive a letter stating that their mortgage is now being held by a different company. You will start sending mortgage payments to this new company.
Consult your bank as Brian stated for clarification.
Best Regards,
Jeanette Smith
Mortgage Planner
Union MOrtgage Group
let me first say this - first horizon home loan is NOT in bankruptcy. where nasty rumors like that get started is hard to fathom.
what has in fact taken place is that the one-time-close product has been dropped. this does not necessarily mean that jayson cannot get permanent financing (an end loan). what we surmise is happening is that the broker he is involved with is frustrated because there won't be a fee coming his way on the end loan, so it's now time to shop it around to a new lender so he can get paid (again).
unfortunately, i hadn't checked the posts here, but jayson is aware that i am working on this situation to try to get him some answers. i work for the retail division of first horizon, and this loan of his is clearly one that exists in the wholesale division; but i've been in contact with wholesale people and we are attempting to iron out this issue with the least possible negative ramifications, trying to cause no harm to come to jayson, whether emotional or financial or otherwise.
jeanette, you are correct about what happens when a loan gets sold...however, this has not taken place in this situation. construction loans do not get sold. if an end loan is made, that may very well get sold, but that's a whole different topic for a whole different day.
i hope i've been able to shed some light on the topic for all of you, and i hope we can put to rest rumors that have no basis in fact.
what has in fact taken place is that the one-time-close product has been dropped. this does not necessarily mean that jayson cannot get permanent financing (an end loan). what we surmise is happening is that the broker he is involved with is frustrated because there won't be a fee coming his way on the end loan, so it's now time to shop it around to a new lender so he can get paid (again).
unfortunately, i hadn't checked the posts here, but jayson is aware that i am working on this situation to try to get him some answers. i work for the retail division of first horizon, and this loan of his is clearly one that exists in the wholesale division; but i've been in contact with wholesale people and we are attempting to iron out this issue with the least possible negative ramifications, trying to cause no harm to come to jayson, whether emotional or financial or otherwise.
jeanette, you are correct about what happens when a loan gets sold...however, this has not taken place in this situation. construction loans do not get sold. if an end loan is made, that may very well get sold, but that's a whole different topic for a whole different day.
i hope i've been able to shed some light on the topic for all of you, and i hope we can put to rest rumors that have no basis in fact.
First horizon has a number of unsatisfied all in one construction loan customers and I wish to talk to them Mark Barnett
barnett, i have no doubt you have a number of unsatisfied customers. that fhhl stopped doing one-time close loans obviously led to a lot of difficulty.
if you're soliciting business, however; this is not a forum set up for those of us in the lending field to solicit new customers. this is a community established for the exchange of ideas, information, etc. if you have something worthwhile to add, that's a wonderful thing. please comply with the spirit of the community, however.
if you're soliciting business, however; this is not a forum set up for those of us in the lending field to solicit new customers. this is a community established for the exchange of ideas, information, etc. if you have something worthwhile to add, that's a wonderful thing. please comply with the spirit of the community, however.
George M. Akerley
I am in the same boat as the jayson and all i have to say is they will lies to you and the foreclose on you
I am in the same boat as the jayson and all i have to say is they will lies to you and the foreclose on you
sorry about my english and sentencing have a crying baby on board trying to type
jayn, i'm sorry to hear that you're in trouble with your loan. believe me, please, i am not apologizing for first horizon. i worked for them for a little over a year, moved on and haven't looked back. there are some good folk there.
these problems go back to the early part of 2008, when the construction area closed its doors. did they lie? well, of course not - the loan officers who suggested their services to you back then had no idea the unit was about to close. it was very frustrating to all involved when that happened. have they lied since? i have no idea, but no matter what the cause or outcome of a foreclosure, neither side is happy.
i hope your situation eases, jayn. and you definitely have a typing error excuse if you're holding the baby while typing!
these problems go back to the early part of 2008, when the construction area closed its doors. did they lie? well, of course not - the loan officers who suggested their services to you back then had no idea the unit was about to close. it was very frustrating to all involved when that happened. have they lied since? i have no idea, but no matter what the cause or outcome of a foreclosure, neither side is happy.
i hope your situation eases, jayn. and you definitely have a typing error excuse if you're holding the baby while typing!
george,
since you worked for first horizon perhaps you can shed some light or provide helpful suggestions. i've worked briefly with a prospective borrower who completed a construction loan with first horizon. she reports that she submitted the necessary paperwork to convert the loan to permanent financing, but for 8 months fh has refused to convert under the original terms of the contract (offerred 18%!!) and has begun refusing payments (the loan was supposed to adjust to an arm that would have a very low rate now). why would they refuse payments on the original terms, if they won't convert? is that a ploy to destroy their credit or trick them into foreclosure?
she retained an attorney in an attempt to compel performance, however, she feels it would be easier just to refinance with another company. however, due to changes in the borrower's circumstances she and/or her husband do not currently qualify to refinance the loan with any loan program of any type (conventional agency, fha, va, usda, or any portfolio program i know about). she has excellent credit and has never missed a payment. in several more months they might qualify since her husbands income will then qualify.
i'm assuming that the original contract was done by construction lending, not by home loans or the bank, since it didn't get sold to met life or any other entity. it must be in the name of the holding company or some dba or a closely held corporate subsidiary.
do you have any suggestions, or know who they can contact to resolve the situation with a conversion under the original terms?
dan stephens
mortgage banker
since you worked for first horizon perhaps you can shed some light or provide helpful suggestions. i've worked briefly with a prospective borrower who completed a construction loan with first horizon. she reports that she submitted the necessary paperwork to convert the loan to permanent financing, but for 8 months fh has refused to convert under the original terms of the contract (offerred 18%!!) and has begun refusing payments (the loan was supposed to adjust to an arm that would have a very low rate now). why would they refuse payments on the original terms, if they won't convert? is that a ploy to destroy their credit or trick them into foreclosure?
she retained an attorney in an attempt to compel performance, however, she feels it would be easier just to refinance with another company. however, due to changes in the borrower's circumstances she and/or her husband do not currently qualify to refinance the loan with any loan program of any type (conventional agency, fha, va, usda, or any portfolio program i know about). she has excellent credit and has never missed a payment. in several more months they might qualify since her husbands income will then qualify.
i'm assuming that the original contract was done by construction lending, not by home loans or the bank, since it didn't get sold to met life or any other entity. it must be in the name of the holding company or some dba or a closely held corporate subsidiary.
do you have any suggestions, or know who they can contact to resolve the situation with a conversion under the original terms?
dan stephens
mortgage banker
i sure don't dan. i would have to assume that their customer service number (which gives poor service in my opinion) would have information on this, but that's probably a road they've been down before. i think the disconnect between construction lending and fh/metlife as a whole is a great deal of this problem, but that's not helpful, either.
your supposition that this might not be a metlife issue may be correct - but again i don't have any firsthand knowledge of that. if i can find an email address out there, i'll drop a note and ask the questions and let you know if i find anything out. please don't hold your breath, though.
your supposition that this might not be a metlife issue may be correct - but again i don't have any firsthand knowledge of that. if i can find an email address out there, i'll drop a note and ask the questions and let you know if i find anything out. please don't hold your breath, though.
I've been trying to get my loan modification documents over to the reps at First Horizion Homeloans so they can go on and get started on the process however for some reason they never got my mail which was like a lot work for me to get docs and everything ready for them tax return and pay stubs and bill stubs etc.. Metlife/FHHL is merging right? So I thought what the heck I'll try applyin via their online portal for this service of course it fails again I get a undeliverable err.. Dunno why... Is it just me or is First Horizon really trying to shaft us homeowners who have a hard time paying their mortgage bills at the current rate given their current economic situation out of our homes just so they can take over and sell it?
I mean is there a limit on "how low" they will go in the loan restructure plan? is it just reserved for folks who are already paying at a even higher rate? Like say someone's payin 1200 or so per month and get it down to 800 or less thur the program? they will select this candidate more than the one that is payin 700 per month since they prob end up going down to 450 or less possibly?
I mean is there a limit on "how low" they will go in the loan restructure plan? is it just reserved for folks who are already paying at a even higher rate? Like say someone's payin 1200 or so per month and get it down to 800 or less thur the program? they will select this candidate more than the one that is payin 700 per month since they prob end up going down to 450 or less possibly?
met life took over the operations of first horizon in the summer of 2008. their customer service number in irving, texas was always a pain in the neck for us to work with (when i worked for fhhl).
there's not a lender in this country stupid enough to think it can force homeowners out of a house so as to sell that house later. for a profit? please...bank-owned homes sell for less than anything else out there except for junked property.
i wish i had answers for people. fhhl was a decent place to work, and i was treated okay; their problems are probably not unlike most of the others in this messy mortgage marketplace - maybe (i love alliteration).
keep on them and fuss and complain. see if you can get through to someone with a brain and a modicum of compassion...just don't give up.
there's not a lender in this country stupid enough to think it can force homeowners out of a house so as to sell that house later. for a profit? please...bank-owned homes sell for less than anything else out there except for junked property.
i wish i had answers for people. fhhl was a decent place to work, and i was treated okay; their problems are probably not unlike most of the others in this messy mortgage marketplace - maybe (i love alliteration).
keep on them and fuss and complain. see if you can get through to someone with a brain and a modicum of compassion...just don't give up.
I also have fallen victim to First Horizon / Met Life / IBM fraud! We have the exact same circumstance as WaltonJayson and at the exact same time. EVERYONE that has had this happen to them please contact me "Text Deleted". I am not an attorney, and as for you George M Akerley, (forum cop?) I am not soliciting business! I am in a federal lawsuit and I am fighting these banksters and need help from the other victims out there.
[E-mail address deleted as per the forum rules. Thanks]
[E-mail address deleted as per the forum rules. Thanks]
Forum cop? Not by a long shot. Apologist for First Horizon? No to that, too. And inasmuch as you wanted to talk to the dissatisfied customers, had you made known your rationale, it would have been easier for those of us who are, in fact, moderators, to know if it's a business solicitation or an attempt to beef up your own suit. We have lots of solicitations going on here, which is a clear violation of the site's rules; so yes, we do look out for each other and for the public at large.
So whether your name is Mark or Todd or any other, keep in mind, please, that the folk seeking help here are in many cases clutching at straws, and it makes sense to admonish those who might solicit their business and do them harm that it's not kosher.
Sorry for the inconvenience to you...just try and understand.
Obviously, we who care for consumers do wish you well in your efforts to make things right. When did IBM get involved in all this?
So whether your name is Mark or Todd or any other, keep in mind, please, that the folk seeking help here are in many cases clutching at straws, and it makes sense to admonish those who might solicit their business and do them harm that it's not kosher.
Sorry for the inconvenience to you...just try and understand.
Obviously, we who care for consumers do wish you well in your efforts to make things right. When did IBM get involved in all this?
oops...only the word "might" in the second paragraph was supposed to be in bold...my mistake.