Sometime during the middle of January, I received a call from Matt Bourgo with ALG Capital Mortage who got my attention telling me that he could get us a 15 yr term mortgage for 4.75% with no points and minimal closing costs ($1215). My husband and I discussed it and decided this would be a great opportunity for us to get ourselves in a better financial position through consolidation as well as have our home paid off even sooner.
Matt was very personable and freindly, always assuring me that his goal was to educate his clients and help them get themselves into better financial situations. He faxed my husband a good faith estimate which contained a higher interest rate than what he had told us he locked in on Jan 28. The following day we received documents from a bank showing a loan amount $8000 higher than what we had agreed upon at that time, with an origination fee of over $7000. When we tried to reach Matt he did not return our calls.
I contacted the receptionist and was referred to Mike-Matt's supposed supervisor. He promised to give us the agreed upon interest rate, even if they had to eat some fees to get it. He also apologized to me about the bank documents and told me that Matt should have warned me about them. They were retail figures, and as brokers, they purchased loans at a wholesale rate due to the number of loans they did. He told me to throw them out, which unfortunatley, I did.
After another month and a half we finally signed, what we considered to be great terms that we had gone over with Mike on the phone the day before.
Once the loan finally funded, however, the amount which was supposed to have been wired into our account was short by $3500. When I contacted Mike about this he told me there was a hold put on the funds to ensure the 2nd mortgage was paid off and that he would take care of it and we would get the money in a couple of days.
The money never came and a few days later we received a statement from the escrow company showing a loan amount equal to the amount on the documents we had received from the bank, which included an origination fee of over $7000 that went to ALG. Upon reaching Mike, he assured me that he would take care of it and told me that he did not know why they had put in the wrong loan amount. Well, of course, now we know it was all a scam.
I have since discovered that the interest rate is 5.125 instead of the 4.75 we signed for, and that the six months worth of property taxes are nowhere to be found since the loan I now have holds no impound account.
If you are a victim of these people as well, don't just take it and think there's nothing to be done. That's why people like this keep getting away with it! Holler and yell and make it known!
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