The company sells all the loans they do. They can't sell our loan. They want us to refy again with them. The credit ratings on the new refy are way higher than they should be. They also won't pay our insurance and taxes, because they don't service loans. Our property taxes are overdue and we had to pay the insurance ourselves or it would have been cancelled. The loan was set up so the finance company would pay these things. I won't sing the new loan docs, because it's fraud.
2006-06-20 10:14:29 · 5 answers · asked by wildbil342003 1 in Business & Finance ➔ Renting & Real Estate
Let me break this down for you.
When you refinance the loan, the finance company needs to find someone to buy the loan. However, they also want the money that you bring at closing to pay their own bills ==> so what some businesses do is that they close you first at the agreed-upon rates and then they gamble that they can sell the mortgage at a profit to another mortgage company in a relatively short time frame (Fannie Mae, SunTrust, Bank of America, Countrywide, Wells Fargo, etc.).
I want to be clear. Once you sign documents at closing, it is your obligation to make the mortgage payment ONLY -- even in instances where the refinance company can't sell the loan.
You are NOT responsible for correcting their poor business judgment. If you closed on the home, both YOU and THE FINANCE COMPANY signed a legally binding document.
You must make the mortgage payments . . .
In turn, the refinance company is responsible for servicing the loan until they can find a suitable buyer of your mortgage. Then, when they sell your mortgage successfully, they are legally required to inform you of your new mortgagor
If the refinance company is NOT in the administrative business of servicing loans, that is THEIR problem -- not yours. It only becomes YOUR problem when you relieve them of their obligation by signing NEW documents for a new refinance!!
Don't do that . . .
Once the refinance company fails to pay your property taxes and insurance as documented in the papers you signed at closing, they have violated their duties as fiduciary of the money that you are paying in escrow on a monthly basis.
They are also in breach of contract! And this is a material breach of contract! They probably are also in breach of several Truth-in-Lending laws as well.
Your mortgage payment should include (principal, interest, taxes, and insurance). The taxes and insurance portion of the mortgage payment is the amount that should be placed in the escrow amount on a monthly basis and paid to the appropriate parties when due.
You have to take care of business now, because they are in big trouble:
First, make copies of:
(1) the settlement statement you received at closing and/or Good Faith Estimate (hopefully, you should have both).
(2) the insurance cancellation letters and deliquency notices, if any, from the county tax assessor's office.
(3) any checks or money orders you made to the refinance company when you brought money to closing. (front and back copies)
(4) any checks or money orders you paid for property taxes and insurance (front and back copies).
(5) The truth-in-lending disclosure that shows the annual percentage rate (APR) of the mortgage and your payment schedule.
Next, contact the Attorney General of the state in which the refinance company is domiciled and report this immediately.
Please be sure to send a copy of this letter to the refinance company putting them on notice that you are on the case like Magnum P.I.
Be sure to send the letter to the refinance company CERTIFIED (no-need for return receipt) and keep copies of the receipts from post office.
The Attorney General will assign a case worker who will review all of the above-mentioned documents you sent them. The Attorney General will contact the refinance company on your behalf and demand that they will respond to you and him usually within 30 days.
Now, if this company is a big bank, like Wachovia, N.A., SunTrust, N.A., or Bank of America, N.A. or a federal savings bank, you can also send a letter to the COMPTROLLER OF CURRENCY for the state in which the refinance company is domiciled. Google to get the address.
They will assign an investigator, who will get down to the truth of the matter.
And lastly, do NOT sign any more documents. They have screwed up big time and they want you to sign more documents to cover up their errors.
And worse come to worse, make a copy of this e-mail and take it to a HUD office and they can tell you what to do as well. They can tell you who to contact.
Good luck!
2006-06-20 11:21:18 · answer #1 · answered by DaMan 5 · 7⤊ 0⤋
There is something fishy with this scenario. You more than likely will need to get a lawyer. There are rules govering repeat mortgage business between one client and one business. You need to check ALL of your loan docs to see if taxes and insurance are covered or what it says EXACTLY regarding taxes and insur. Find your HUD settlement statement, servicing disclosure, truth-in-lending, good faith estimate, note, and loan approval. These docs should contain all of the information you and your lawyer will need. From my experience: Yes they did screw up something because they can't sell the loan. A lender will not take a deal if they can't sell it (especially when they don't service loans). If that servicing disclosure says that the company does not service loans and will not service your loan, you have a right to make NOISE because they are doing the opposite of that by having you refi thru them again. Call the BBB also and have them look into it. If you are really worried about the taxes and insurance (after you have talked to a lawyer about this particular company) you should be able to get a straight rate/term refi. Because you have already refi'd thru this company, any subsequent refi's must make sense for the BORROWER, i.e. the rate and term should be the same, there should be little to no closing costs, etc... (Don't quote me exactly on this but I am pretty sure). Pay the mortgage on time and keep a record. DON'T SIGN ANYTHING THAT YOU ARE NOT COMFORTABLE WITH AND DO NOT SIGN ANYTHNG THAT HAS NOT BEEN EXPLAINED TO YOU! Good luck!
2006-06-20 11:40:13 · answer #2 · answered by DEVILSCORNER 2 · 0⤊ 0⤋
I would only refi your loan if all the terms stayed the same, and there were no closing costs. Rate, term, loan amount, etc... should all be exactly the same as the first loan.
Regarding your insurance and taxes. You need to look on your HUD-1 settlement statement from the closing on the first go around. If they collected insurance and taxes at closing, they have to pay those things. The company should keep those funds in an escrow account - seperate from all other funds, because technically... it's not theirs.
You can only say it's fraud if there was mis-representation in the file. Such as a bogus appraisal or income altered documents, promising one rate and they close on another, etc...
2006-06-20 10:46:11 · answer #3 · answered by lester 3 · 0⤊ 0⤋
Sounds like there was a problem with the loan file because the other lender will not buy it and doesn't want the risk. Was everything on the up and up with the lender? Was the appraisal legit and not inflated? Did they forge income documents? Definitely something wrong with the loan the first time around.
http://www.lendermark.com
2006-06-20 10:24:09 · answer #4 · answered by lendermark1 2 · 0⤊ 0⤋
Hope this helps!
2016-07-01 00:50:30 · answer #5 · answered by ? 2 · 0⤊ 0⤋
Did you have a lawyer at closing? If so, call him/her. If not, GET A LAWYER. and good luck!
i agree, i wouldnt sign anything until i understood everything
2006-06-20 10:20:52 · answer #6 · answered by georgia 3 · 0⤊ 0⤋
How are you going to pick the best answer?
2006-06-20 13:56:49 · answer #7 · answered by ron d 3 · 0⤊ 0⤋
I may be able to help please e mail me and so I can get further details and contact #s
Regards
Stephen
2006-06-20 11:13:52 · answer #8 · answered by STEPHEN R 1 · 0⤊ 0⤋