Mortgage Mistake

[Dallen6465]

What is the name of your state?What is the name of your state? Florida

I recently bought a home using a 80/20 loan. The loan closed 43 days a go. Yesterday I received a packet with a complete new set of loan documents on the 20% second mortgage. I called the mortgage broker and was told that there was a mistake on the original documents and that the new documents needed to be signed. The original 20% second mortgage was a fixed 15 year note at 5% APR for $37,000. The new loan documents show a variable rate HELOC at 6.9% with intrest only for the first 10 years then a 5 year payoff at the end.

There was never a rate lock document signed on this loan. There were multiple applications for the second loan and none of thos matched the terms of either loan. The GFE does match the original loan terms.

I did sign a compliance agreement stating I would agree to correct mistakes in the mortgage paperwork, but this seems to be a totally new loan with completely different terms, not just a mistake the needs correcting.

Can I force the mortgage company to honor the original loan terms agreed to at closing or does the compliance agreement allow them to completely change the terms of the note?

[HomeGuru]

Originally Posted by Dallen6465

What is the name of your state?What is the name of your state? Florida

I recently bought a home using a 80/20 loan. The loan closed 43 days a go. Yesterday I received a packet with a complete new set of loan documents on the 20% second mortgage. I called the mortgage broker and was told that there was a mistake on the original documents and that the new documents needed to be signed. The original 20% second mortgage was a fixed 15 year note at 5% APR for $37,000. The new loan documents show a variable rate HELOC at 6.9% with intrest only for the first 10 years then a 5 year payoff at the end.

There was never a rate lock document signed on this loan. There were multiple applications for the second loan and none of thos matched the terms of either loan. The GFE does match the original loan terms.

I did sign a compliance agreement stating I would agree to correct mistakes in the mortgage paperwork, but this seems to be a totally new loan with completely different terms, not just a mistake the needs correcting.

Can I force the mortgage company to honor the original loan terms agreed to at closing or does the compliance agreement allow them to completely change the terms of the note?

**A: something sounds fishy and hinting of predatory lending practices.

[florida5121]

Need some more information on your original second. What are all the documents you signed at closing on the second. There should be a second mortgage agreement or a note. What are those terms? Sounds like your mortgage broker messed up. Did the new second mortgage documents come from the broker or the second mortgage lender?

"...Can I force the mortgage company to honor the original loan terms agreed to at closing or does the compliance agreement allow them to completely change the terms of the note?..."

Yes, this is a scam and a common one too. Get the docs or other info you have on the second so you can back yourself up when you tell the lender you will go with your original agreement.

[Dallen6465]

Originally Posted by florida5121

Need some more information on your original second. What are all the documents you signed at closing on the second. There should be a second mortgage agreement or a note. What are those terms? Sounds like your mortgage broker messed up. Did the new second mortgage documents come from the broker or the second mortgage lender?

The note on the original 2nd was for 5%, fixed rate for 15 years. We signed the note, the mortgage and the truth in lending. All the numbers agreed. We signed a lot of other paperwork that really had nothing to do with the terms of the loan. But there were some lender specific itemised papers that also agreed with the terms of the note. The new second came from the broker, Premier Mortgage Funding. There is some confusion as to Premeir's function. They funded the loan at closing with the intent to sell it immediatly. The notice of intent to sell the note was included in the closing papers.

[Dallen6465]

Originally Posted by seniorjudge

"...Can I force the mortgage company to honor the original loan terms agreed to at closing or does the compliance agreement allow them to completely change the terms of the note?..."

Yes, this is a scam and a common one too. Get the docs or other info you have on the second so you can back yourself up when you tell the lender you will go with your original agreement.

I hope you are right. I have everything in order and I'm ready to fight them. Do you think they will just say OK when I protest the new note? Or will it take an attorney?

"...I hope you are right. I have everything in order and I'm ready to fight them. Do you think they will just say OK when I protest the new note? Or will it take an attorney?..."

Of course I am going to say hire an attorney.

I really do not know the answers to these questions. I have not seen any of the documents.

[asylum23]

This company wasn't Americorp by any chance was it? We had about the same thing happen from them. Went to closing and signed all the paperwork. Our loan was $105,000 at 6% for 3 years then variable interest. The payments were supposed to be interest only for 3 years then interest plus principle for the rest. Everything we signed stated this. Also had to sign a sheet stating if there were any mistakes on closing paperwork they could correct them and we had to sign them.
2 months after closing Americorp sent us a whole new set of paperwork they wanted us to sign. The difference was that the loan was now interest only for 10 years rather than 3. Well this was a whole new set of loan terms I didn't agree to, not just a simple mistake. I never signed them and never heard anything else about it. Is this some type of common scam?

[shakinyou]

Originally Posted by Dallen6465

What is the name of your state?What is the name of your state? Florida

I recently bought a home using a 80/20 loan. The loan closed 43 days a go. Yesterday I received a packet with a complete new set of loan documents on the 20% second mortgage. I called the mortgage broker and was told that there was a mistake on the original documents and that the new documents needed to be signed. The original 20% second mortgage was a fixed 15 year note at 5% APR for $37,000. The new loan documents show a variable rate HELOC at 6.9% with intrest only for the first 10 years then a 5 year payoff at the end.

There was never a rate lock document signed on this loan. There were multiple applications for the second loan and none of thos matched the terms of either loan. The GFE does match the original loan terms.

I did sign a compliance agreement stating I would agree to correct mistakes in the mortgage paperwork, but this seems to be a totally new loan with completely different terms, not just a mistake the needs correcting.

Can I force the mortgage company to honor the original loan terms agreed to at closing or does the compliance agreement allow them to completely change the terms of the note?

I'm in the process of purchasing a house of my own. Anyways my agent just told me today that I will be getting lots of packets in my mail from my mortgage company about my loan(2nd loan). He told me to "JUST THROW IT ALL AWAY, DON'T SIGN ANYTHING." Shred it all up and throw it away, because you already made agreement about the first loan. I'm not sure if this is a scam, it's just a procedure that the mortgage company does. So just throw it away. They love to make our lives confusing, especially when lots of $$ is involved. I hope that helps.

[Rhubarb297]

Originally Posted by Dallen6465

does the compliance agreement allow them to completely change the terms of the note?

Absolutely not. I'm with HomeGuru on this one. Something sounds fishy.