My husband and I recently refinanced our mortgage and unfortunatly used USA Prime Source Capital to do it. What was supposed to relieve us financially, put us so much further in debt than we were before the refinance.
After completing all necessary documentation, appraisals, verifications, etc, we were contacted by Prime Source and told that because the loan ammount was so small (70,000), they could not charge any broker fees in the loan and we had to pay them outright before the loan could close. The ammount was 2500.00. I explained to them that we did not have the 2500.00 and was told that the check would not be cashed until the loan was funded and the small ammount of equity money we were taking out (5000.), was in our bank account. Since, there was no other way to close on the loan, and our bank was waiting for the payoff, I sent the check with good faith that this was legimate. Boy was I wrong!
We closed on the loan the day after USA Prime Source Capital got the check.in the closing papers, I noticed that there were 1400.00 in Mortgage broker fees included in the loan. I went home and immediatley called Prime Source and asked for an explaination. The broker said that there should not have been any fees in the loan and he would look into it and get back to me. Well, he never did, and shortly after, lost his job with the company. HMMM...
In the meantime, we waited for the loan to get funded. It had been several days and I called my bank to see if the deposit had been made to our account of the equity money. I found that it hadn't, however the 2500.00 check had been cashed and we were bouncing checks all over town. If that was not bad enough, when our equity money came, it was only 400.00. A far cry from the 5000.00 we were supposed to be getting.
We had to take out a 3000.00 loan at our bank to cover the check. I began calling the manager of Prime Source Capital, Michael Diaz. I asked him for our 2500.00 back since we paid for broker fees in the loan. He refuses.
I then noticed on our HUD 1 closing statement, that USA Prime Source Capital did not even disclose that they recieved the 2500.00 payment from us. I then contacted Mike Diaz and told him that I know that he was not entitled to the money, there was no contracts signed and no disclosures made. He then told me that he will just say that that fee was a real estate consutlation fee. He refuses to refund our money even though he knows what he did was illegal.
I don't doubt that this company has done this to people in the past. They just got caught this time because they cashed the check before the loan was funded.
Please... Buyer beware.
Don't let this company do this to you. The financial impact all of this has had on us is horrific. We have aquired over 600.00 in bank fees alone, not to mention being placed on telechecks system and had to pay off the 3000.00 loan out of our pockets.
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