Mortgage Forum

Mike

My fiance (the house and mortgage in her name) and I bought a three family house Sept. 2007. I knew what I was getting into and refused to sign a ARM. We went with 80/20. 7.5% and 14% +/- About 5 months later, we received a call from a operations person saying we had to refinace the second mortgage (20%) because there was a document we didnt sign. Not to worry though that they would be paying the closing costs and all fees. Also the interest rate would drop 2%. I was like WT**? :confused: We were looking at another property and knew that there would be a hit on our credit report for a new account. I told my fiance to cancel the appointment. At this point she is all worked up dealing with this operations guy. He told her since we cancelled the appointment at the end of the month that our prepaids would be higher. He also said there would be no hit to our credit report. My fiance gave in and rescheduled. There is no doubt that we were bullied and strong armed into this. I still dont know why or how. This is from a major bank, and they dont do subprim from what I read. 1. How do we find out what happened. 2. What recourse do we have to either modify the mortgage etc.? 3. What responsibilty does the attorney have, I mean she gets paid to overlook the paperwor, and that is it. She represented us and the bank.

carl spiegler

I read with some confusion the issues you posed. It seems that the 2nd disbursed money with screwed up paperwork. That's their problem actually but if they are going to lower your interest rate, probably no harm done in resigning the papers. A decent lawyer should be able to advise you.

I was curious to know if you live in this home? The interest rate you quote seems a little obscene. If it is owner occupied property, and the price of the home fell under FHA guidelines, why didn't you try an FHA loan with Nehemiah Downpayment? Your interest rate would have been around the 5 or 6 percent range If you don't have prepaid penalties on the loan(s) and you appraise right, you might still refinance under FHA. Find a lender that really knows FHA guidelines. (I'm a realtor in Las Vegas-so I'm not soliciting your business. Don't worry).

Oh...if this operations guy told you prepaids would be higher, did he mean prepayment interest or your prepaid insurance and taxes? Insurance and taxes are usually impounded by the first mortgage holder. Not the second.

Good luck

Carl Spiegler

rachael24

Mike...you have any follow up?

__________________
Recent college graduate with a credit consolidation concentration.

gtull1

Mike, just sign the papers pal. the bank screwed up on the mortgage loan. They're offering you a heck of a deal to cover their arse. Why not meet them in the middle? You save some interest on your home loan, they get the mortgage documentation they need, and you both walk away happy.

What, are you going to file an attorney malpractice suit against your real estate transaction lawyer? Come on. What injuries have you received? It looks to me as if you have benefited from the mistake. Right? Maybe you owe your closing attorney some additional legal fees! (lol j/k)

Seriously, this is a no harm/ no foul situation. Sure, you may be able to finance the property with another lender if the paperwork wasn't handled correctly with the bank, but why bother if they are offering you such a good deal? Unles you think you could get a better rate with another mortgage company...