This company uses the US mail to solicit mortgage savings over current loan when refinancing. They Offer loans through well known lenders. Since I live in Virgina, and they are 100 miles away in Maryland, they offer a no extra charge in your home settlement service. Sounded convenient.
Good Faith Estimate show high Fees, almost $2000.00 for title work, additional Broker Fees; $1000.00, AND 2 points on the loan. Fees on a $190,000 loan were well over $8,000!! I negotiated over the phone lower fees saving almost $1500. Closing costs should have been about $6300.
However just before closing they review the HUD statement over the phone, confirm what was agreed upon, but fail to fax me a copy. We verbally agree on all costs.
The ripoff takes places as they schedule the closing near the end of the month, at night, in your home, then show up with incorrect paperwork. The person who travels to your house claims no knowledge of any of the loan details as he is just the "settlement agent".
The paperwork they brought to my house included almost $10,000.00 in closing costs, double charges for title work by calling the title examination by 2 different names, inflated charges from the Good Faith estimate and HUD statement, including boosting the charges of everything from the appraisal and title work to some never seen before charges not mentioned on either Document. Every charge I negotiated a discount on was at the orginal high price.
Once I told them the paperwork was all wrong, they get the manager on the phone. He makes up nonesense reasons why this is all wrong and says not to wory he will refund me the difference later. He insists I must sign that night as the 21st of the month is too late to get the loan closing rescheduled and the paper work in as it must be in 5 days before the end of the month. I told him I need it in writing and he agrees and says his settlement agent is a Notary. I write up a note, but the agent will only scribble his name and says he has no notary seal with him.
At this point I call my brother, an attorney, who states mortgage Docs have a statement saying any agreements made outside the loan Doc's are null and void. He advises that the agent cut me a check on the spot for the over charges, or reschedule with correct Docs.
The manager threatens me with having to pay an additional full months interest charges up front if I insist on correct paper work and a reschedule. He insists I must either sign now, walk away from the loan all entirely, or pay an extra months interest. I did not walk, I RAN!
Of course Monday moring they called and had no trouble in offering me next day closing. I told them to email the HUD and this time they had lowered only SOME of the charges, still over charged for title work and more, and a newly added a $780 "commitment fee"!
I found a lender the next business day who charged 40% less in closing costs, and was honest and open about everything.
I shudder to think what kind of customer service and problems I would have if I had signed!!! Not mention the promised refund money I would still be writing about...
A
Virginia
U.S.A.
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