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  1. #1
    Join Date
    Jun 2010
    Location
    Georgia, US
    Posts
    20

    Mortgage refinance-is this normal?

    My husband and I were working with a Quicken loans representative to try to refinance our house to get the monthly payments down to a more manageable level. Here's what happened...I want to know whether this is normal or if any part of the process was fishy. Thanks!

    I put in a request on Lending Tree Loans and got a call from a Quicken representative. I was told about a loan that we supposedly qualified for that would allow us to pay off our mortgage and credit cards (which amount to a lot), and we would make the monthly payment to them and they would distribute the money accordingly. Basically they were assuming our mortgage, if that makes more sense. Anyway, the terms were great, we were really excited. They gave us a quote for a 4% rate, but said that we had to get a $400 good-faith deposit to them *right away* to lock in the rate. They said that once the loan closed, we'd get all of it back. We didn't have it, so we had to borrow it. Originally it was $500, but we 'qualified for a reduction'. Oh, and, my Ch. 7 bankruptcy in 2004 'wasn't a problem'!

    The next day (a Sunday) I faxed back a bunch of forms and papers that they sent us through PDF...they said the deposit was to pay the appraiser for the house. The house came out not to be worth what they were basing the loan on, so now we can't have it unless we pay off one of the credit cards we mentioned. We have to have that done by Dec 6 or else they 'can't lock in the rate'. We can't get our deposit back either, as it stands. If we get the other one paid off by Dec 6, we can, but as things are now we can't.

    I just want to know if this is all 'normal'. Meaning, is it kosher for them to request (well, it felt like 'demand') a good-faith deposit *right then* that day so that they can 'lock in' the interest rate. That seemed kind of strange to me. It also seems strange that we have a 'time limit' for the loan rate to be locked in.

    Oh, and, if it matters they said that the house wasn't worth what they were basing on because other houses in the neighborhood were sold for lower than they were worth as well. I find that really weird because wouldn't they have seen that when they pulled the property tax info from the county and told me that they thought the house was worth $200,000 based on that? Sorry I'm asking so many questions...I'm just really unsure. If we've been scammed, well...there's a special place in Hell for people who scam people who can least afford it. :) I've been scammed before, but in a different way.
    Last edited by ShannonR.; 11-07-2010 at 11:47 AM.

  2. #2
    Join Date
    Jun 2010
    Location
    Georgia, US
    Posts
    20

    Re: Mortgage refinance-is this normal?

    Oh, and, they said that the deposit had to be on a credit card. I guess they couldn't wait for mail. When they told us about paying off one account to get the rest of the loan, they mentioned that we could get it from someone else, and that that person can write them a note saying that the money is a gift to us. Why would they care where it came from, or whether or not we had borrowed the money from someone else we know as opposed to it being given free and clear? It's not like they would be involved if I indeed did pay someone else back for fronting us the money.

  3. #3
    Join Date
    Nov 2010
    Posts
    2

    Re: Mortgage refinance-is this normal?

    As a 10 year mortage professional, may best advice to you is to seek a refinance from your local Credit union or Bank. Stay away from the internet. you will be reffered to mortgage brokers who will charge you excessive fees.
    Who do have for your mortgage lender now? See if they can refinance your loan at a discounted origination fee.
    Any up front fees - these are for the credit report and appraisal and not a "good faith fee' to lock in your rate. You still have to qualify for a loan based on credit , cash reserves, debt to income ratio and the value of the home. If the value comes in lower than expected and you do not have the equity to "cash out" the Lender should be honest and tell you that all they might be able to do is a Rate and Term loan, and you wont be able to cash out. With that being said however , if you have a lot of debt and your DEBT TO INCOME RATIO is too high, then in order to get the Loan to value you want, you would be required to pay off some or all of the debt to get the loan.
    So you have to ask your self , If I pay off the credit card (probably to lower your debt to income ratio so you qualify) Is the refiance including all closing cost going to drop my rate >2% and will I recapture the expenses with in 2 years?
    If the anser is no then stay where you are.
    There are certain guidelines all lenders are required to follow. Right now any cash out transaction where I am is limited to 75% loan to value and a 720+ credit score. Rate and term can go up to 95% LTV with a credit score of 720 +. BK must be older than 3 years with no current delinquencies.
    Quicken loans is pressuring you, not explaining what is going on and My best advice is to seek the advice of a local professional Loan officer who can sit down with you face to face and explain everything to you. If you are not getting a good feeling from him/her then Shop around. Your credit score will not adversly be affected if you are Shopping with in 30 days of the pulls. Its ok to shop. As far as the "gift" lenders have to source and season funds in other words if a Major bill JUST GOT PAID OFF Or is getting Paid off they want to Know WHERE you got that money.. That is why they ask for 2 months bank statements. If you didnt have that money in the bank then how did you pay that off? Same if you were needing a down payment for a loan. So yes if you get the money to pay off anything from a family member they will be required to offer it as a gift in the form of a gift letter.
    I dont think Quicken Loans is scamming you they are just not EXPLAINING it to you correctly.
    No ones house is worth anything anymore and no one has the equity to cash out hardly. if your current interest rate is 6% or less and you do not plan on staying in this house longer that a few more years, stay where you are. If your credit is back up and on track after the BK and your Debt load is not high, shop around and dont let anyone pressure you into something you do not understand. Ask a ton of questions and dont blame the lender because you signed something you didnt understand . Ask and make sure you know what you are signing before you do it. Lenders are required to DISCLOSE everything its the LAW. it will be in writing on all of your documents. If you dont understand- ASK for an explaination.
    Credit restrictions and lending is tight right now so be patient. But shop locally or go back to your current lender since they have your loan.

  4. #4
    Join Date
    Jun 2010
    Location
    Georgia, US
    Posts
    20

    Re: Mortgage refinance-is this normal?

    Thanks! I did talk with someone at the original mortgage lender's office yesterday and he suggested a hardship modification. That would fit perfectly because that is exactly what is going on-I got hurt in 2005 in a really bad car wreck and I am now on Social Security Disability for things stemming from that, along with something else. I've been sporadically employed between 2005 and when I got benefits in 2009. This is the first company that even asked how we got into the position we were in, or that gave it any consideration.
    In ancient Egypt, cats were worshipped as gods. Cats have never forgotten this.

  5. #5
    Join Date
    Nov 2010
    Posts
    4

    Re: Mortgage refinance-is this normal?

    The whole process seems a little fishy to me. Unless your credit score was really low you should of be able to get a tradional mortgage. Have you signed all documents? What are you on the hook for?
    Ask some more questions, get some legal advice. It sounds wrong that they would take over your home. Have they changed the title of the house?

    Stop! take a deep breath something does not feel right.

  6. #6

    Re: Mortgage refinance-is this normal?

    You were not scamed!!! AND Do not do a mortgage modification!!!!!!!!!

    3-4 months from now you will writing a on new online forum board asking WHY MY MODIFICATION IS NOT GOING thru.

    I can tell you right now that lending tree was trying to payoff debt to get you to qualify for the loan. Then your appraisal came in short (the tax assessed value is not accurate), now lending tree can't payoff your debt and keep the LTV to the specific "Cashout" guidlines.

    Don't expect over the top service from an online mortgage refinance machine

    y

  7. #7
    Join Date
    Jun 2010
    Location
    Georgia, US
    Posts
    20

    Re: Mortgage refinance-is this normal?

    We ended up not getting a loan modification through the government or anything, although we did talk to someone about that. We never signed the papers. I heard so many stories about things not being done right (if at all) and then having their homes foreclosed upon, and we decided not to do that. Judging from some of the articles I've read, it appears that we dodged a bullet!

    We did end up getting a decent refinance and so far we haven't had any problems. The mortgage is now through our primary bank, so it's been much easier to manage.
    In ancient Egypt, cats were worshipped as gods. Cats have never forgotten this.

  8. #8
    Join Date
    Aug 2016
    Posts
    4

    Re: Mortgage refinance-is this normal?

    ohhh....dnt worry.we are offering loans and mortgage at very low interest on very affordable terms.we also provide excellent service and make sure that you are well informed.:) :)

  9. #9
    Join Date
    Nov 2018
    Posts
    5

    Re: Mortgage refinance-is this normal?

    If the home you were trying to refinance was not at the value you said it was, then the terms of the deal (and their estimate) were not accurate and unfortunately, subject to change.

    Also, you should have received a TON of disclosures in the mail from the lender. You should actually read that material as it will help you understand what went wrong and how you can avoid it in the future...

    Good luck!

    [QUOTE=ShannonR.;984861]My husband and I were working with a Quicken loans representative to try to refinance our house to get the monthly payments down to a more manageable level. Here's what happened...I want to know whether this is normal or if any part of the process was fishy. Thanks!

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