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Home Equity Loan Problems. Go Through With It??

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Lynn63

Junior Member
What is the name of your state (only U.S. law)? AR

Today has been such a circus, but I'll do my best to put things in order here.

In May, my husband and I applied for a home equity loan to take care of some repairs and improvements where we live. (It's a manufactured home (double-wide) secured on concrete footers and sits on several acres...when set up, it was all rolled into one home mortgage loan 9 years ago and FHA financed.) After the initial application and income/credit verification, we were told we'd get the loan. $20,000 for 10 years @ 4.25 %. We received our GFE on our lender's website. We could have the closing in our home town rather than 3 hours away which sounded great. Since that time...the ball has been dropped for almost 2 weeks with no activity working the file, the title co. found that a Quit Claim deed was needing to be signed by people we've never heard of (they said a claim was filed against the property in 2006...had no clue and still don't know what that was about). They managed to locate the people and the QC was signed.

We've checked on the status of the loan at least once a week since May, each time stating, "If there's anything else you need or we can do, please let us know." Last week, we were notified that closing would be the 26th (tomorrow). They did need updated payoff amounts to a couple of things they are requiring we pay off (a Mastercard and less than $1000 owing on a car loan.) I received and emailed those amounts Monday morning to the lender.

MONDAY: A couple of hours after emailing payoff amounts, the lender replied asking if we had a copy of the title to the home. Then I received another email afterwards, "Never mind" she found a Serial # on the ins. policy and they would work with that. Then ANOTHER email...no...they DO need the VIN# and could I call the mortgage company and "maybe you can call them and see how we go about adding our name since they have the title" and have them fax a copy to them so they can put a lien on it. I called the mortgage company and the guy said he put in a request for the mortgage deed to be faxed to them. I told him they specifically said "title", but he assured me what they were sending was what they needed. After speaking to him, I emailed the lender and told them the conversation and to expect a fax...and to "let me know if this is sufficient or if there is anything else you need". I began feeling put out that they waited until a few days to tell us they needed this after all this time! The reply email from lender was telling me they'd keep us posted.

TUESDAY: No word from lender and Thursday is closing.

WEDNESDAY (today): I emailed this morning asking if they received the fax. "Yes...it's a copy of the mortgage deed and didn't have the VIN#". They said they would work with "what they had" and contact the State Dept. Finance office and file for a title. Relieved with following up on a "we'll see you tomorrow...thank you!" email to my lender, I also ask for a copy of the HUD-1 Settlement to compare with the Truth-in-Lending/GFE forms. I then see that the filing charge went from $95 to $155 and the $175 title ins. charge went to $660! The original GFE had included a $495 appraisal fee, even though I was told one wasn't needed. I called and reminded them of that and they said it would be adjusted later. Total closing cost $1338. Note would be $204.88.


2 p.m: I get another email saying the finance committee met and they decided they needed the title in hand, not the mortgage deed. They still needed the VIN #. They called the State Dept. of Finance and they don't have the title..."the mortgage company does". I was asked, "Can you contact your mortgage company again?". Panicking about now...time is running out. I call my mortgage company again and explained what they needed. They guy tells me that it would take 3-4 business days for the process to get them what they need. He was nice enough to conference call with our lender and explain this. At this point, it's looking like the closing can't take place.

4 p.m: I still have an hour left in the day. Our ins. policy declaration page had a Serial #, Make, Year, and size on it...but "that's not what we need". I then put in a call to our insurance company in hopes that they would somehow have a VIN# listed somewhere. Hubby runs home to frantically look for said VIN# where ever he might find one. (He is self employed with a road call business and is missing calls due to jumping through hoops at this point.) While on the phone with the ins. lady who is looking, the lender is calling in on my call waiting...put ins. lady on hold only for the lender to NOW tell me that they decided they did need an appraisal after all since they decided the estimator tool they use wouldn't be accurate as they'd like since we're in a rural area (was told from the beginning we didn't need an appraisal and could save by them doing the "estimator tool".) Lender has the nerve to place me on hold even though I told her I was speaking to the ins. lady trying to find a VIN#. I switch back to the ins. lady who then tells me that she searched and the Serial # IS the VIN#. Good Lord!! I ask her if she'd speak to my lender if I gave them her #..."sure". Switched over the lender call who is in mid-sentence talking away... The woman is trying to decide what/how to do things now. I gave her the phone # and asked her if she'd call the insurance agent and reiterated the business about the Serial # and VIN# being one and the same. By then it's 4:30 p.m. We never heard back.

4:57: I sent a detailed email (paper trail) back to the lender recounting the conference call with the lender, the discrepency in the closing charges vs. GFE amounts (which miraculously equals to $1378...note being $204.88. Same note payment, but even higher charges...and now we're told to expect an appraisal too.) She said that the reason it went from $175 to $660 on the title services and lenders insurance was because, "that's what the title ins. is charging to do the closing where you are." Closer to home cost more?? We can drive 3 hours and pay less than $500 in gas if that's the case. I also stated in the email that I assume they would notify the title company of the closing needing to be rescheduled...just in case they drop the ball on that and us be dinged somehow.

Anyways....after jumping through hoops at the last minute on things that we should have been informed about and that they should have decided on and put together by now (IMHO), do we have to go through with this? SHOULD we go through with this?? What would YOU do?? It's difficult finding an institution that would refinance a manufactured home, so we were feeling like we're one of the lucky ones even getting any kind of loan. But are we being done wrong? Is stuff like this the norm? I'm sorry this is so long. I appreciate you hanging in this far if you have and we'd appreciate any advice. Just wondering since the closing has to be rescheduled now, are we legally bound to, and if not, would they have the right to charge us for anything during this process so far?

Back and forth..."yes"..."no"..."can you get this"..."find out how to do this"....My head is still spinning.... : (
 


OHRoadwarrior

Senior Member
If you need to ask if you should go through it, you do not need the money. If you need the money desperately, you will pay and play. I see no reason the lender would not take every step possible to try and flush out a nefarious attempt on your part to take the money and run after all the other people that have.
 

Lynn63

Junior Member
OHRoadwarrior...Gee...I'm really glad there's an edit button, because my first reply wasn't very pretty. Being stressed, I totally read your reply as though you were accusing us of wanting to "take the money and run", so I apologize if you read my first reply. We're not, nor ever have been, like that. We're responsible people with excellent credit. I've been on this site in the past over tenant problems...it's been almost 3 years since the tenants from hell trashed our beautiful rental home, and hopefully that dispute will be over and done with. Had it not been for the massive amount of $$ we were out during that time period making the place livable again, we would have no need of a loan now. It really set us back financially. Back to your reply...I do understand where institutions would do things to flush out ill attempts on the applicant's part. I don't feel this is the case at all. They were in awe that from the beginning, we gathered and sent everything requested by them and all has gone well. It's just been this week before closing and especially after all of this transpired the last couple of hours today...the day before closing. When I posted, I guess I was still in the "hurry and get info" mode. Being stressed, I rushed here to post asking questions before letting the adrenaline settle. In 1996, I was a single mother raising 3 children...a USPS letter carrier in TX who built a nice brick home using a mortgage company in NJ...and taking care of most of that business over the telephone on my 30 min. lunch breaks! But I never had the problems with that like we've had today over this! lol. Yes...we do need the loan, but wondered if this was the right lender to get it from. We want to be done right ourselves! It's not a game to us...it's 10 years of a lien (which we've never had in our lives) hanging over our heads. I guess things will work out one way or the other.
 
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OHRoadwarrior

Senior Member
When you are sitting down at closing, play good spouse/angry spouse. Nudge the closing officer to stick to the original terms. Many times, these charges are fluid and they bump them to make extra money. Call their bluff, if the loan officer does not bite, reluctantly agree with good spouse and sign. No offense taken, I often hedge my postings to find out where the OP is coming from. I drive my spouse nuts sometimes.
 

Lynn63

Junior Member
Who...you?? lol. Well, thanks for listening and the tip. I knew they bumped the charges. Had it not been that on top of everything else, I probably wouldn't have been so stressed. What do you think about them changing their minds on the need for an appraisal the day before scheduled closing? Our actual amount we'll get in hand just seems to keep dwindling, but...we'll bite the bullet I guess and go with it whatever the case. Thanks again.
 

OHRoadwarrior

Senior Member
IMO, someones boss looked at the paperwork and questioned them as to whether they did "due diligence" on the loan, making sure the lender would be able to recoup the money in the event of default. To cover their butt, they added the requirement.
 

nanu156

Member
Is this normal?

YES. This is pretty normal, Manufactured homes are considered "personal property" and not "real property" legally. There is a whole process by which they have to be reclaimed by.. Additionally it is the opinion of the industry that they do not go up in value they actually decline in value (homes have been declining too, but that is a whole different sob story)

So what we are talking about here is a high risk loan. A high risk loan with title issues.

The title costs have increased because initially they were estimated, the initial estimate assumed that title was going to require a minimal amount of work. Title work is a racket. Legally the mortgage company and the title company can not share funds... they can't be connected it is a respa violation. So legally the mortgage company isn't making more off a hike in title insurance.

It's the end of the month now, so the per-diam interest may be for close to 30 days that could cause a reduction in cash at closing or an increase in cash to close. Same applies to HOI and Tax impounds, these figures were initially estimated.

Check "discount points", Lender fees, application fees, underwriting fees, processing fees. Those are the places where the lender may have made changes to increase their profits. Increases in other places do not necessarily indicate increases to the lender.

The title situation sounds like a freaking mess. Thats part of the reason lots of lenders don't do manufactured homes.

So, review your HUD statement (thats the final good faith estimate, no longer an estimate and called a HUD in the closing documents) if there is an increase in the actual lender fees don't sign....

You should have a right to rescind, although this isn't a mortgage note but a lien against personal property, im not as familiar with these as I am mortgages. If you have a right to rescind, and have paid any $$ out of pocket a rescission would get you a refund and nullify anything you signed at the closing. Dirty? YES. But if they are playing dirty so can you.

In the event you rescind the mortgage company has to pay you back for every cent and they get nothing. The process actually cost them money. Thats bad.

READ READ READ your documents. I can't stress READING your documents enough
 

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