should mortgage person be paid if no acceptable mortgage is calculated?

Question

I have 4 properties- 2 investment, 2 residential. My main home is with WaMu and has a second with Countrywide. The mortgage person told me he could get a second on one of my investment properties that he refinanced, then I could use that cash to re-fi my main home, I would be able to get out $12,000 and then combine the 1st and 2nd plus get lower payments on this home. This has been going on for 2months, and he just told me that he could not get the second from the rental, and that I would have to come to the closing with $20,000 for my main home to go through with WaMu,plus payment would be closeer to $2100,a month with escrows combined! I put a halt to this because it is a worse scenario than I have currently. He is stating that I should pay him $1000 for all his work! Do I need to pay him for his (as he stated child support)?

Answer 1

you need to pay him if you signed a contract with him that said you pay him 1k no mater what. If you didn't, tell him to go to hell.

Answer 2

This sounds highly suspect. First of all, it is about impossible to take cash out of a non-owner occupied property, but if you could the rate would always be much higher than on your owner-occupied primary residence. It makes NO sense at all to refinance an investment property at a higher rate and then use cash from that to pay off a loan on a primary when in all probablility the rate on the investment property would be higher.

This is some kind of shell game this person is playing with your money, and you will only lose. Tell him to get lost and don't pay him anything because his ideas are not beneficial and make no logical sense. Tell him you have you own child to support.

His work amounted to nothing because he did not know what he was doing and merely wasted his time as well as yours. No loan closing, no payment.

Answer 3

First of all, only pay the fees that your contract (that you signed) says you should. Were there any appraisals done? Those would need to be paid. Typically though, loan officers (just like us Realtors) get paid IF and WHEN a closing happens.

As far as the loans go - yeah, it sounds pretty wrong to try to do what you've written here. And maybe he had a way to work it out if this was August of 2006 instead of August 2007. Many loans have disappeared in the last 6 months. Many loan officers will be disappearing in the next 6.

If his bread and butter have been cash-out re-fis, or sub prime type loans, he either needs to get with a company that does "real" loans, or if his does already, he needs to learn those products - or he needs to go to another career.

Answer 4

A mortgage broker can charge pretty much what he/she wants. However I would think about reporting this to the local state real estate/banking commision. This individual sounds like one of the less honest people in real estate. You have no responsibilty to help him pay his child support. And from what you said, who know if he would pay it.
Being a broker is a sales job and not all deals get done. You dont owe him for his time. There is alot more going on here than meets the eye.

Answer 5

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Answer 6

If you do not close on the loan, the loan officer does not get paid. The terms are not what you discussed and I would ask for my deposit back (if I gave one). Tell him to take a hike.