Refinance Mistake

[garcia1228]

California...
We recently just refinanced our home through a large mortgage company. Since the mortgage company we were using did not have a loan that could get our payment where we wanted it they went to an outside company to get a loan. The rep from our mortgage company dealt with the third party company so we had little contact with them. When we did try to contact them regarding the status we were told that we were not their client and that we would have to speak with our mortgage company to get status since they would only speak with them. We were told what our type of loan was to be, the rate, and the terms and then were also told what the total payment would be. When we went to sign the papers we noticed that the amount on the papers was alot higher than what we were told it was going to be. We called our rep right then and let her know what the docs stated and the amount. She said that everything was as is should be and to go ahead and sign because of the type of loan we were to get it would not show our lowest payment option on the docs themself. We signed as our rep instructed us to and now we are finding out that the loan is not at all what we were told it was going to be and now our payment is 1300.00 higher than it was to begin with. Also with this new loan is a 12,000.00 prepayment penalty for a year. We called our rep and she said that the only way to correct it is to pay the prepayment penalty and to refinance again. Her company is unwilling to pay for any of the fees and expects us to absorb it all. We have emails from her that state what our rate and payment was suppose to be and we also have an email that she was mistaken and should have reviewed the paperwork because there is no way we would have been able to tell it was the incorrect loan at the signing.

Is there anybody that may know what we can do about this situation before we are forced to pay all of this money to refinance yet again to get our payment down to where it should have been in the first place**************.What is the name of your state?What is the name of your state?

[seniorjudge]

Q: Is there anybody that may know what we can do about this situation before we are forced to pay all of this money to refinance yet again to get our payment down to where it should have been in the first place


A: Your choices are to refinance or sue the people who did this to you and wait four or five years to find out if you have a case.

[JETX]

Originally Posted by garcia1228

Is there anybody that may know what we can do about this situation before we are forced to pay all of this money to refinance yet again to get our payment down to where it should have been in the first place

How EXACTLY were you FORCED to sign this deal that you KNEW was bad??
Did they hold a gun to you??
Maybe, held your child as hostage??
Come on... give us the GOOD stuff!!!

And if you weren't FORCED... then you are stuck with the deal that you signed.

[garcia1228]

We called our rep at the time of signing and let her know exactly what the paperwork said and what the amounts were. She assured us that all was correct and to sign. After everything came to light she sent us an emailing stating that when we called her she should have had a copy of the note faxed to her so she could review it so that this would have never happened. We were trusting her as our agent to give us the correct information not the incorrect information. That is her job is to correctly inform people of the loans that she has set up.

[seniorjudge]

When you signed the written documents, then that means that you agreed with what they said.

[garcia1228]

That is the whole point we would have not signed if she would not have told us that they were correct. That is why we took the time to consult her while we were there. If we were unable to get a hold of her we would not have signed the papers till we were able to speak with her since she was the one that assigned the loan and new what she was doing.

[danno6925]

Let's do some quick math... 12k ppp - I'm thinking your new mortgage amout was 400,000.00, yes? That puts the value of the home in the area of a 1/2 million - give or take a few thousand...

So my question for you is this: if you're wealthy enough to afford a half a million dollar home and you can afford to mortgage it up to 400k, why the hell aren't you smart enough to bring an attorney with you to the settlement? IMO, you have more money than brains, and your "rep" took advantage of that. When they say representative, guess who's interests they're representing? I'll give you a hint - they ain't yours. The rep's best interest was seeing you sign those loan docs so that s/he could get paid.

An attorney would have represented your best interests, and not the mortgage company's. You took bad advice from someone who had no interest in seeing you do anything but accept this new loan. Bet you won't do that again.

Is what happened to you morally and ethically reprehensible? No doubt.

Was it illegal? Probably not, unless JETX is right on the money about the gunslinging at settlement, but I don't buy it.

It's time for you to do some math of your own. Calculate how much more you'll spend in the next year and compare that to the 12k ppp. If the amount you're spending is higher than the PPP, just refinance again with a different lender, and bring an attorney with you next time!!


I am not an attorney. I have worked in title insurance since 2000.

[seniorjudge]

Originally Posted by danno6925

...
I am not an attorney. I have worked in title insurance since 2000.
....

Then you must realize that we are in the midst of a depression.

[JETX]

Originally Posted by garcia1228

We called our rep at the time of signing and let her know exactly what the paperwork said and what the amounts were.

Who EXACTLY is this 'rep'???
Is she your realtor??
Is she your attorney??
And what EXACTLY is her obligation to you??

We were trusting her as our agent

Hmmmm.... interesting.
First she was your 'rep'... now she is your agent. Which??

That is her job is to correctly inform people of the loans that she has set up.

Her 'job' is more than likely to get you to sign the papers as they were. If that is the case, sounds like she did her job.

You need to quit ignoring the questions asked. The only way you are going to get accurate advice is to be honest in your posts or follow-up questions.

[garcia1228]

She is our loan agent.

[JETX]

Originally Posted by garcia1228

She is our loan agent.

Not enough information.
Is she an independent 'broker' or does she work directly for the lender??

[garcia1228]

She works for Cal Bay Mortgage

[JETX]

Originally Posted by garcia1228

She works for Cal Bay Mortgage

Are you saying that the documents presented to you at closing are significantly different then those shown in their 'good faith estimate' required by RESPA??

If so, you need to look at the two documents (closing and good faith) and see where the problem is.
Then, take all of your docuements to the lenders office and ask an officer to explain the differences.

Read the information at:
[url]http://www.hud.gov/offices/hsg/sfh/res/stcosts.pdf[/url]

[efflandt]

Were you given a notice of Right to Cancel? When I refinanced (in IL through my existing lender) I had to initial receipt of 3 day right to cancel forms that said in part:

You have the legal right under federal law to cancel the account, without cost, within three (3) business days after the latest of the following events:

(1) The opening date of the account (signing/closing date), which is _________;

(2) The date you received your Truth-in-Lending disclosures; or

(3) The date you received this notice of your right to cancel.

[url]http://consumer-affairs.co.la.ca.us/TSReFi.html[/url] shows a 3 day right to cancel. Note that it does not apply to rental property.

Did you have any disclosure in writing (e-mail is not good enough) of the proposed terms of your loan before applying for the loan?

Why was the party you were a client of (likely for a fee) NOT at the closing, if you were not to deal directly with the 3rd party lender?

[danno6925]

Originally Posted by seniorjudge

Then you must realize that we are in the midst of a depression.

It sure isn't pretty.