Funny? HUD story (long) - Posted by Pam WA

import · October 21, 2000, 11:17am

Posted by Pam WA on October 22, 2000 at 20:26:08:

I had come to that conclusion. Also decided that if I know there is an error, document ASAP and get the info to everyone. Obviously we can’t depend on anyone to take the initiative in their job.

This area functions as a fairly small town type, so I’m trying to be a good person to deal with. I’d rather be able to laugh and dredge up this incident by way of saying “I know you wouldn’t have anything like that happen”, to a new RE agent or title co., than bad mouth people for the fun of it.
Will be looking for a new realtor SOON!
Pam WA

import · October 21, 2000, 11:17am

Funny? HUD story (long) - Posted by Pam WA

Posted by Pam WA on October 21, 2000 at 11:17:15:

OK, on August 22 I put in a bid on a HUD home for personal use and was the winning bidder. That’s the easy part.
During the time I was checking on financing, I found out that the assessors office had one address (same as HUD) but the actual address was different. (correct address was 34*** and incorrect 35***).
I told my RE Agent and the Mortgage company rep about the address correction. RE agent checked with HUD rep in office and tells me “he says HUD won’t change the address under any circomstances but as long as mortgage is issued under correct address, you are fine”.
Here’s where the stuff gets funny.
I went with a different mortgage company than the pre-qual letter. The new mortgage company asked the title insurance co. for a preliminary report, which the title company promptly promtly sent to the pre-qual company. That company did not bother telling them that it wasn’t their paperwork, so there was a two week delay until someone in the new mortgage company realized that nothing was happening with the loan.
Loan was supposed to close on 9/25 but couldn’t due to paperwork delay.
I’m financing with an 80/15/5. Property overappraised, so no problem. Closing was set again for about 10/5. I have reminded mortgage co. and RE agent a couple times about address change.
Mortgage Co. does not get paperwork on 2nd to title co. on time to close. May also have had a failure by one of the “overnight” mail services to deliver documents.
Closing takes place on 10/10. Does everyone but me know that HUD requires a $250 cushion (i.e., overpayment on the buyers part) at closing, in case someone made a mistake on figures? Closing is $700 more than estimate, I squeak by. HOWEVER, ALL the closing papers have the wrong address on them. I cross it out on all papers, correct and initial. They also had my current address wrong.
Everyone is confused and no-one knows what to do with my terribly inappropriate action (gee, I just want the correct legal address on the papers). They sit on their hands the rest of Tuesday, Wednesday, Thursday and Friday. On Monday I get disgusted, call the County Planning Dept. They assign addresses. I ask for something in writing. I fax info to them, thay reply on letterhead paper, signed, with correct address (34***), citing statutory authority, some other info, and a note that this property has never had another address. This is within two hours. I copy this and take copy to mortgage co, title co, and RE agent. It finally breaks the logjam and everyone starts correcting their papers.
Supposed to fund and record 10/19 but mortgage co. doesn’t forward corrected papers for 2nd, so delayed. Also the paperwork which was faxed to me to document correction of address has the right street address and the wrong city! Just corrected city on that, initialed, signed, and returned.
Was supposed to fund 10/20, not sure if/when recorded.
Will find out Monday if/when it’s actually mine.

I suspect lots of people in this are not happy with me. When the title insurance is issued under the wrong address, the appraisal (appraiser had the correct address but the title company made him change it) has the wrong address, the mortgage company has the wrong address, and the government HUD had the wrong address, after being told that it is the wrong address, doesn’t it imply that someone is not carrying out their legal duties???
I would think that at least one person in the chain would have said, “I’m tired of this buyer thinking she knows more than the great and powerful _______ (fill in the blank) and I will go to the top authority and prove her wrong in writing!” That would have solved the problem!
Oh, when I spoke with the Planning Dept in Early Sept, they were supposed to correct the address at the assessors offfice. This was not done at that time. Also, HUD closings go through Santa Ana, CA, for Wa state, so the local office was only doing a courtesy closing (that will be $150, please). The mortgage co. is one of the large merged ones and ok’s stuff out of Portland, OR. This was the first HUD house sold by my RE agent (hey, Dave, wanna sell more HUD houses? reply: “Has hell frozen over yet?”)
Luckily I had no deadline to be out of my current residence.
I’m to the point I can only laugh. This is beyond ridiculous. It’s as if someone challenged the group to make as many errors as possible. Hope the rest of you found this amusing.
Pam WA

import · October 22, 2000, 12:17pm

Re: Funny? HUD story (long) - Posted by Ed Garcia

Posted by Ed Garcia on October 22, 2000 at 12:17:56:

Pam,

Thank you for sharing your story with us. When things like this happen to us, all we can do is what you did and try to have a sense of humor. What Bill Scott said in his post is right, your Realtor should have been on it, but so should have your Mortgage Co, after all you brought it to everyone’s attention. What has happened to you is why I’m such a control freak. I realize that for others, it’s just a job and they don’t have our best interest in mind. I think what has happened to you is indicative of what’s going on in the business. Employees today are working in a robotic manner and have lost the work ethic and pride in what they do. From where I sit, I see it all of the time, and I’m afraid it has become a epidemic.

Ed Garcia

import · October 22, 2000, 6:59am

Re: Funny? HUD story (long) - Posted by Bill Scott

Posted by Bill Scott on October 22, 2000 at 06:59:27:

They’re ticked at you?? They’d have singed ears if they’d tried this nonsense with me. Once you get this deal done with you need to dump some non-performers. Remember, these folks work for you and you are making them MONEY!

Your RE agent should have been on the ball and should have been shepherding the financing through making sure that the ‘T’s’ are crossed and the ‘I’s’ dotted. He should also have been the one getting the address problem corrected. I’d deep six him and find an agent that knows how to work the financing, and can solve problems!

Your mortagage company has taught you another valuable lesson—don’t deal with companies in which the underwriters are a state away. Keep with companies where the underwriting team is local so that if you have to you can make a personal visit. Loan officers will tell you anything you want to hear—the underwriters are the real power along with the processors. You want them close and you want to keep them moving things forward—and you’re agent should be doing this for you!

The title company is also at fault. They should know what to do with fouled up addresses. All of the title agencies I deal with won’t let a deal close until they have solved what the correct address is. They also screwed up in not making sure that the funding was in place at time of closing.

Anyway, now you know why quite a few folks don’t want anything to do with a HUD deal. I’d also get rid of the realtor you’re using and ditto for the mortgage and title company.

import · October 22, 2000, 8:28pm

interesting… - Posted by Pam WA

Posted by Pam WA on October 22, 2000 at 20:28:46:

I didn’t realize problems were that common. Of course, for the average person buying one house every 7-15 years, they may never get a hint.
Thanks for your insights!
Pam WA