My ex-husband and I wanted to refinance, but his credit was too horrible. I got a call, unsolicited, from Paradise Lending (a local Broker) offering a low rate. Paradise (a lady named Suzanne) qualified us and quoted a rate based on our combined incomes, but said my Ex could NOT be on the mortgage because of his credit, but that was "okay" since he'd be paying half the mortgage anyway. They also said that the Lender, BNC Mortgage, required my Ex to sign a QC deed quitclaiming his interest (50% joint tenant) to me. Naturally, that wouldn't fly with the Ex, so Suzanne said "don't worry, you can put him back on title as soon as the loan goes through escrow".
So Paradise sent me a loan packet including 2 deeds (one to me a Tenant in Severalty, one from me to Ex & I as Jt. Tenants). What Suzanne DIDN'T tell me about is the "Transferability - Due on Sale" clause that FORBIDS me to put him back on title without ADVANCE WRITTEN PERMISSION FROM BNC (which clearly didn't exist), which clause allows BNC to accelerate the debt and ultimately foreclose.
Suzanne then told me "she" was opening escrow, but the cover letter to open escrow is from BNC and it only enclosed ONE deed (guess which one). Paradise Lending never told BNC about the QC to put Ron back on title because they KNEW it wouldn't fly.
However, the recording fees on the HUD show 2 deeds recorded and one mortgage which means Paradise slid the 2nd deed into escrow behind the Lender's back and w/o telling me that if the Lender ever found out, they could take my house for that reason alone. I've made the payments on time for a year, and so far, ASC (successor to BNC), hasn't learned that Ron's on title.
That aside, I'm facing foreclosure anyway because my Ex and I broke up and he moved out, so I'm footing the whole $2,026/month payment myself. I recently became unemployed and lost a tenant (I'd rented 2 rooms to help make the mortgage), and ASC forecloses in 60 days (which is 50 days from now), so it's inevitable unless I find work immediately, but I've sent out almost 200 resumes and had over 30 interviews in the past 6 months, and still no job (I'm either unqualified, not a mechanic or boat captain or nurse or in construction, or I'm overqualified, for the type of jobs this town offers). I just need some time to find a job, that's all.
Anyway, in researching how to stop foreclosures or how to get emergency mortgage assistance, I was directed to parts of my loan paperwork, which was prepared by Paradise Lending. Therein, I discovered the blatant and total fraud committed by Paradise Lending that could have cost me my house at any time in the past year, but ironically might save me from ASC's almost-certain foreclosure action, I hope.
I was set up, even before escrow closed, so that the lender could foreclose on me even before the first payment was due, or anytime after that, even if I'd never been late.
Paradise then told me "they" were opening escrow, but the cover letter to open escrow is from BNC and it only enclosed ONE deed (guess which one).
The broker, Paradise Lending, knew damned well I could not qualify for, or pay, this loan on just my income, so they must have added my Ex's income on MY loan app somehow (they did it over the phone, and never have sent me a copy of it). She also knew my Ex and I were having problems and were likely to break up, and if so, I'd not be able to pay the mortgage alone. So she fudged on the loan application (which I've never seen, but which she must have because it took our comined incomes to qualify), and then conveniently never sent me a copy of it.
Paradise other, less major things:
1. Misrepresented the prepayment penalty, saying it was a 2-year period, but the paperwork said 3 years when I got it.
2. Failed to mention that of the lump sum closing costs she quoted me, there are EIGHT (8) (!!!) broker's fees, lender's fees and closing fees. But only one broker, one lender, and one closing.
3. Submitted a deed to escrow that she knew was not allowed under the mortgage she provided, and knowing it could cost me my house.
4. Charged me $25 for "notary fee", although she never came to Kona, or sent anyone here (from Honolulu) to notarize my signature. Rather, she sent me a package with 2 sets of docs, one for signing, one for me to keep. She's also never given my copies of the SIGNED loan docs.
I could go on, but you get the idea.
To anyone in hawaii: don't go near paradise lending!!!
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