Note: Reliance Mortgage has the legal right to keep the full deposit amount as I signed a form granting that right.in my opinion, where the ripp-off occurred was in their keeping the full amount of the deposit. I made sure they did not incur any costs the deposit was intended to protect them from, such as appraisal and survey fees. The only fee they incurred was the $100 credit report fee. I understand the need for a deposit to be paid and even a form stating that it is not refundable but, in my opinion, honest business practices refund the portion of the deposit that is not used.
I received an offer from one of Lending Tree's lenders named Reliance Mortgage. The offer looked decent so I went in and spoke to one of their Loan Officers. I signed a form that stated a deposit of $495 was required and that it was not refundable. The breakdown was $100 for the credit report and the rest was mainly for the appraisal and survey.
This sounded legitimate as a mortgage company needs to protect themselves for people who back out at the last minuet, leaving the mortgage company footing the bill for the appraisal and survey platt fees.
After the full loan disclosure was given it surprised me that there were over $8000 in closing costs. On the original loan description the fees were $911 - a BIG difference from $8000.in addition the loan officer told me that they do not service any of their loans (they sell them) and that was a turn-off. There was also an issue with a discount point that was offered as an option on the original loan description that was not available when I went in to discuss the loan as it had already been applied to original rate.
After thinking about it overnight I decided that I did not want to use Reliance mortgage - I decided to shop around. I called the loan officer and told him to put the loan on hold and not to do the appraisal or survey platt. I also called the appraisal company and told them to cancel any appointment they had as I was not sure that we were going through with the refinance. I also requested that the return any original document I had given them in association with the loan (the old survey platt, bank and investment statements etc.)
To date I have not received these documents and they have cashed my deposit check. For me not to feel ripped off I would like to have received my original documents as well as the portion of the deposit not used for what it was meant to protect them from (ie: Survey and Appraisal fees).
My opinion is that should have kept $100 for the Credit Report fees and returned the rest.in addition, the fees and rates shown on the original loan description were vastly different from what they told you in their office. My experience gives me the feeling that it is a shady operation. Remember that this is my opinion and my experience - I would research this company and not trust they will use the best business practices.
Philip
Dallas, Texas
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