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10-26-2004, 12:41 PM
| | Member | | Join Date: Oct 2004 Location: CA, NC
Posts: 79
| | | Do I have to pay former lender appraisal fee?
What is the name of your state?North Carolina
First time homebuyer
I recently applied for a loan with the recommended builder of a new development. We received a letter of commitment from the lender. She was actually a mortgage broker. She was bad. The communication was poor and so was her good faith. Our realtor recommended to continue and shop for a better mortgage, since we were not obligated to use her as our lendor. We got a great deal through a bank via a special program. A difference of $6000 in closing costs on a $135,000 mortgage and a rate .75 lower!
Now I hear through the grapevine that she wants to recoup her costs of appraisal, credit report, etc. She never notified us upfront of these costs nor did we sign anything. I hear she claims its customary that we pay. Isn't it customary to collect these charges upfront? Isn't it customary to explain to us these fees? Does she have in cause of action and/or remedies at law?
What law covers such an issue if any? Does any law apply that I can review? |
10-26-2004, 01:16 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
| | Quote: |
Originally Posted by dworrill What is the name of your state?North Carolina
First time homebuyer
I recently applied for a loan with the recommended builder of a new development. We received a letter of commitment from the lender. She was actually a mortgage broker. She was bad. The communication was poor and so was her good faith. Our realtor recommended to continue and shop for a better mortgage, since we were not obligated to use her as our lendor. We got a great deal through a bank via a special program. A difference of $6000 in closing costs on a $135,000 mortgage and a rate .75 lower!
Now I hear through the grapevine that she wants to recoup her costs of appraisal, credit report, etc. She never notified us upfront of these costs nor did we sign anything. I hear she claims its customary that we pay. Isn't it customary to collect these charges upfront? Isn't it customary to explain to us these fees? Does she have in cause of action and/or remedies at law?
What law covers such an issue if any? Does any law apply that I can review? | **A: you owe the appraisal fee. |
10-26-2004, 01:29 PM
| | Member | | Join Date: Oct 2004 Location: CA, NC
Posts: 79
| | | What governs me to pay the fee? |
10-26-2004, 02:00 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
| | Quote: |
Originally Posted by dworrill What governs me to pay the fee? |
**A: read all the documents that you signed. |
10-26-2004, 03:49 PM
| | Member | | Join Date: Aug 2004
Posts: 107
| | | the broker owes the appraiser. I am 100% sure the appraiser asked who he was getting paid from when the order was assigned. Since he did not collect from you at the time of appraisal, the broker probably guaranteed it. Since you did not sign anything, I don;t see how you could be held responsible.
While teh fees are typically the buyers, many times the broker guarantees them to the appraiser.... |
10-26-2004, 04:23 PM
| | Member | | Join Date: Sep 2004 Location: Philadelphia, PA
Posts: 363
| | | It's customary to either 1. collect for the appraisal up front in an application fee or even 3rd party payee check, 2. have the appraiser get paid COD when they do the site inspection, or 3. to disclose that third party costs are the responsibility of the borrower and allow them to be collected at settlement. IF none of these three things happened, and you should be very certain about the third, no, you don't owe.
If the broker ordered the appraisal, did not collect funds to pay for said appraisal from the borrower, and did not inform the borrower of the charge, the broker is the proud owner of the appraisal and should pay her debt. |
10-26-2004, 06:26 PM
| | Member | | Join Date: Oct 2004 Location: CA, NC
Posts: 79
| | | Just got home from work.
I looked at the commitment letter. Some of the conditions include an appraisal yet to be completed, title work, etc.
If that is the case, then what could she actually be charging me for other than the hard work at screwing me? |
10-26-2004, 06:34 PM
| | Member | | Join Date: Oct 2004 Location: CA, NC
Posts: 79
| | | All this woman has given us so far are the GF copy (faxed/unsigned version) and our commitment letter(faxed/unsigned version). We have received nothing else from her. I called her and told her I didn't like her service and was going to shop around. Wouldn't she have a duty to mitigate any damages thereafter? Shouldn't I have copies of alot more paperwork? i.e. anything we signed. (I did read everything we signed and remember nothing obligating us).
What effect can she have on my closing if I play hardball? Can she cause any delays? Liens? etc. |
10-26-2004, 09:07 PM
| | Member | | Join Date: Oct 2004 Location: CA, NC
Posts: 79
| | | Did I forget to mention that the house is being built? The home will be completed approx Nov 29. |
10-27-2004, 08:10 AM
| | Member | | Join Date: Sep 2004 Location: Philadelphia, PA
Posts: 363
| | Quote: |
Originally Posted by dworrill Did I forget to mention that the house is being built? The home will be completed approx Nov 29. | It sounds to me like you did not sign any contract with the first broker. Put the ball back in her court:
"At what point did I agree to this charge? Can you show me where I authorized it? If I did so, I'll pay. If not I'm sorry you ordered the appraisal without a way to pay for it, but that's business."
If you contracted with the broker for third party fees such as the appraisal, you'll have to pay for them. If you didn't, you wont. Simple as that. | |
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