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After successfully selling my property in the morning and moving everything out my mortgage company screwed up the documentation for our purchase and we did not close. I'm now officially homeless with a 6 month old.
The mortgage company have been absolutely shocking blaming everyone but themselves. It all started when they fired the guy doing our loan. The person that took it over was trying to screw us from the start. I can only assume internal politics were to blame but it seems unjust for us to suffer as a result. The final problem was that their appraisal valued the house at selling price and then could not prove it. This was because we pay the selling price at closing but all upgrades were paid for before. This means that it's value is more inline with the comparables which puts it 15% above selling. I can't understand why it's a problem though as the LTV ratio is 57% and they are complaining it is worth more than they expected!
They can't give me a date to close now and so I'm stuck 3 hours drive away from my work. The only silver lining being that I was allowed to store my belongings at the new house and the insurance have covered it even though we do not own it.
So cheer me up by letting me know you worst property buying stories.
The mortgage company have been absolutely shocking blaming everyone but themselves. It all started when they fired the guy doing our loan. The person that took it over was trying to screw us from the start. I can only assume internal politics were to blame but it seems unjust for us to suffer as a result. The final problem was that their appraisal valued the house at selling price and then could not prove it. This was because we pay the selling price at closing but all upgrades were paid for before. This means that it's value is more inline with the comparables which puts it 15% above selling. I can't understand why it's a problem though as the LTV ratio is 57% and they are complaining it is worth more than they expected!
They can't give me a date to close now and so I'm stuck 3 hours drive away from my work. The only silver lining being that I was allowed to store my belongings at the new house and the insurance have covered it even though we do not own it.
So cheer me up by letting me know you worst property buying stories.
dickymint said:
Suitable user name you have 
Yes, the irony has not escaped anyone in my family. I'm h0b0 because my last address was in Hoboken NJ where the term Hobo comes from. I'm moving to the town where Thomas Edison invented the light bulb so I may become "Bright spark" but for now h0b0 is appropriate. The whole process has been a nightmare from the beginning and we just hoped it would end. We bought the last place in 2006 and over the 6 years of owning it we lost $100k. And, that's before the 5% estate agent fee.
Foxtons came over with their 2% and bought all the MINIs on the east coast. They failed to take hold of the market and there was a glut of second hand MINIs availible. I think it is 6% in NYC. I hate it and if you negotiate less the estate agents refuse to sell your place. Where I live you list with One agent and they put it on their web site and that's it. They never show the place nothing. Then buying agents will bring their clients round but the know nothing about the property. It was so bad that I ended up printing my own marketing and putting up signs saying "look at the view" as we had feed back that people hadn't noticed the Empire state building or the Chrysler building.
Very frustrating.
Very frustrating.
Sold the home so could buy another mortgage free. A rather healthy six figure sum was transferred into our bank/ building society, Lewis must have been pleased. We moved out to a relatives to search for our new house as cash buyers.
Unfortunately the bank proceeded to lose the whole amount.
For 4 days. They had no idea where it had gone.
Calls to some call centre eejit in India enquiring as to the location of my nett personal worth only served to increase my blood pressure.
On day 5 they found the cash.
I no longer, and never will again, have any dealings with a certain foreign bank.
Hope you get your situation sorted.
Cheers,
Tony
Unfortunately the bank proceeded to lose the whole amount.
For 4 days. They had no idea where it had gone.
Calls to some call centre eejit in India enquiring as to the location of my nett personal worth only served to increase my blood pressure.
On day 5 they found the cash.
I no longer, and never will again, have any dealings with a certain foreign bank.
Hope you get your situation sorted.
Cheers,
Tony
And here is the update.....
Mortgage company still not happy with the appraisal. The appraiser doesn't know what to write to satisfy them. Mortgage company can not legally talk to appraiser so we are stuck. Then we have 3 different time zones to contend with and I'm still homeless with no date for closing.
Mortgage company still not happy with the appraisal. The appraiser doesn't know what to write to satisfy them. Mortgage company can not legally talk to appraiser so we are stuck. Then we have 3 different time zones to contend with and I'm still homeless with no date for closing.
And here is the house in question
h0b0 said:
I may be opening myself up to the PH taste police here but this is my house........
I have finished the basement so that there is a shower a large room that spans most of the level and a decent sized office. The office is the last 2 windows and the other windows are all one room. The only room that feels too big is the master bedroom. The rest seem reasonable.
I have finished the basement so that there is a shower a large room that spans most of the level and a decent sized office. The office is the last 2 windows and the other windows are all one room. The only room that feels too big is the master bedroom. The rest seem reasonable.
This is getting silly now. The mortgage company have decided to reject both appraisals now. The first was done during construction and the second at the end. How they can't appraise a house when their job is appraiser I don't know. And, due to time zones I have to wait 5 hours before I can even call them.
h0b0 said:
This is getting silly now. The mortgage company have decided to reject both appraisals now. The first was done during construction and the second at the end. How they can't appraise a house when their job is appraiser I don't know. And, due to time zones I have to wait 5 hours before I can even call them.
Suggest formal complaint to the top person and an application with a different lender who isn't a cock.Minor compared to your problems, but during our recent house purchase, I sat with the mortgage lady going through the detail of the mortgage and my temporary contract. She rang through to HQ to get everything agreed -which it was.
Then week later (after organising the move, speaking to solicitors, moving things on etc) she rang back and said they'd changed their minds and couldn't lend what was needed. We then had a nail-biting few days for a revised sum (or any sum at all) to be agreed.
Thankfully, it was sorted and I'm actually glad we borrowed a bit less. But complete nightmare.
Then week later (after organising the move, speaking to solicitors, moving things on etc) she rang back and said they'd changed their minds and couldn't lend what was needed. We then had a nail-biting few days for a revised sum (or any sum at all) to be agreed.
Thankfully, it was sorted and I'm actually glad we borrowed a bit less. But complete nightmare.
Rude-boy said:
Suggest formal complaint to the top person and an application with a different lender who isn't a cock.
I have experience with compliance from the pharmaceutical industry and so know all the right trigger words to get action. I sent a strongly worded email (see I still have a sense of humor) to the mortgage company and copied the executives on it. All but one executive bounced but the one that didn't obviously had an impact on the process as everything got escalated to the highest level and I have people working on this to stupid hours. But, for all the work in the world they can not fix stupid and because they can not tell the appraiser what is wrong he has to keep guessing. Because it is compliant it is not as easy as just getting another person in to appraise the property because anything that has been documented has to be justified.
I still think the appraisal has come in 10% below market value and this has been the source of most of our issues. The appraiser said "It is selling at this price so that is the value" and tried to make the comparables fit. The problem is that the sale price does not include upgrades which account for over 10% of the total price and so there are no comparable sales at his appraised value. Once he realised this he changed the appraised value to match the comparables but now the mortgage company want to know why he appears to be pulling numbers out of his arse.
The reason for the substantial upgrade costs is to keep the tax assessed value down. My annual taxs are 3 1/3% of assessed value.
I can't go with another lender because it takes 45 days to get to this point. I am stuck.
This is partially my fault as well. I should have learned from experience that I should not go with this lender. The last place I bought using them I was not married at the time and they dropped me off the paper work on the day of closing. This meant that I was paying 50% for a place that I did not own and was not entitled to through marriage.
OK, I'm in. Well I have been for over a week. The final stretch was straight out of some really stupid film. We tried to close one day and the mortgage company stopped that so had to close the next day. For legal reasons I can't go into full details of what happened but my attorney got his partners involved to get this sorted. It meant that a simple house purchase ended up requiring a team of lawyers.
The house is great but a little big!
The house is great but a little big!
h0b0 said:
OK, I'm in. Well I have been for over a week. The final stretch was straight out of some really stupid film. We tried to close one day and the mortgage company stopped that so had to close the next day. For legal reasons I can't go into full details of what happened but my attorney got his partners involved to get this sorted. It meant that a simple house purchase ended up requiring a team of lawyers.
The house is great but a little big!
Congrats. Although I'm English, my ex-wife was from Morristown, just up the road from you.The house is great but a little big!
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