Posted by John Behle on October 20, 1998 at 18:57:43:
Great job. Now, send a nice letter thanking all the ones who helped you - especially the Senior Vice President. Even a letter to people’s superior’s might be appropriate. You don’t need to go into details, just that you had a problem and they solved it immediately and something about naming your next child after him (just kidding). Show some appreciation now and you’ve built a good relationship.
HELP!!!My bank is - Posted by George Kouspidis
Posted by George Kouspidis on October 17, 1998 at 17:02:33:
Hello,
Recently I was pre-approved, (I have the actual copy for $50,000 loan, 0 points, at 6.75%)
When I called the bank to inform them that I found the house to buy and that I must close within 2 weeks, (the fast closing was imposed by the seller which is FANNIEMAE), the bank obligated me as follows: “in order to lend you the money the rate is now 7%.”
I was afraid to back-out and they locked rate at 7% for the same loan which was originally quoted and pre-approved at 6.75%.
Am I right? What can I do to convince the bank to give me the lower rate? In addition, the pre-approval certificate mentioned that its under rate guarantee, meaning that I will not be charged a higher rate and also that in case rates dropped even lower at time of closing, I would get such lower rate without any penalties.
Have any ideas? Do I have leverage against the bank? Can I report them to BBB?
Closing is 10 days away!
HELP!!!
Sincerely to all investors,
GREEKVESTOR
Re: HELP!!!My bank is - Posted by Irwin
Posted by Irwin on October 18, 1998 at 09:00:01:
I never saw a pre-approval letter that locked in a rate. If you have to quibble with your bank over .25%, maybe your’re deal isn’t so good and you should re-think it.
Re: HELP!!! My bank is a loser - Posted by Mr Donald (NORVA)
Posted by Mr Donald (NORVA) on October 17, 1998 at 20:29:56:
Greekvestor:
If you play hard and fast with the Senior Bank Vice-President or President’s office, you should be able to prevail. Otherwise, you’re just spinning wheels and heels on this one.
It’s also dependent on how important this deal is to you - can you live with 7% versus 6.75%?
Did you lock-in at 6.75% - or were you just “pre-approved” for 6.75%? Those “pre-approvals” are increasingly not worth the paper they’re written on - especially if there’s a problem.
If it’s not a “commitment” for the 6.75% rate, well… However, if it is, contact the Senior Vice-President or President Office via fax, phone and Federal Express immediately.
Send them a nice note explaining that due to the bank’s inability to perform on their commitment to lend $50,000 at 6.75% years, you’ll be forced to close at a rate of 7%, thus costing you an additional $3,006.79 over the term of the loan (assuming 30 years term and amortization), and thus you’ll have to consider your options legally to recoup this amount plus legal costs immediately if the interest isn’t reset at 6.75% as agreed.
Will $3000 over 30 years break you? Or does it just wank you off that the Bank thinks it can get away with this opportunistic shysterizm? Either way, good luck - and consider it a lesson learned.
Lesson? Don’t use Banks, unless you have to. Banks are notorious for not wanting to lend you a raincoat when it’s raining.
Mr Donald
dlm@bellatlantic.net
Not likely … - Posted by HankM
Posted by HankM on October 17, 1998 at 19:33:03:
It sounds like you failed to lock your rate … re-read you pre-approval. First it’s tough to lock a rate without a contract, though it does happen. Second, no bank that I know of will unilaterally assume the interest rate risk (if it goes lower we’ll lower the rate, but it won’t be higher). Rates have been volatile in the last week or so. Up a lot in the early part of the week, ebbing somewhat at the end.
Good luck. BTW the comment that you “locked” at 7.00 is implicit that you were floating (not locked) previously.
Hank
Re: HELP!!! My bank is a loser - Posted by GREEKVESTOR
Posted by GREEKVESTOR on October 19, 1998 at 13:52:02:
Hello, and thanks for your comments Mr. Donald.
I wrote a complain to the bank’s Sr. Vice President, asking him to give me back my approved lower rate at 6.75%.
Re: HELP!!! My bank is a loser - Posted by GREEKVESTOR
Posted by GREEKVESTOR on October 19, 1998 at 13:14:56:
Hello,
It was not a “commitment” but rather a pre-approval certificate for 6.75%, or an Approved Homebuyer’s Certificate like this bank likes to call it.
Such certificate also states: you don’t have to worry about rising interest rates.
Amen Hank! - Posted by Rene Perrin
Posted by Rene Perrin on October 17, 1998 at 20:42:54:
Try reading the bank’s proposal- Also, if you did get a “commitment,” it is usually your responsibility to sign the paperwork and send it back (usually with a commitment fee.)
What’s .25% of $50 Grand anyway? Does it make your deal a pass now?
RP
Re: HELP!!! My bank is a loser - Posted by GREEKVESTOR
Posted by GREEKVESTOR on October 20, 1998 at 16:33:53:
Hello,
First and most important, our RE Online club is one of the greatest. I’m glad I participate in it. I admire the members and I respect all their opinions.
Somehow I always receive numerous responses on my letters. For such, again, I really appreciate it!
As far as my latest problem with my bank, let it be known that I complained to its Sr. Vice President, whose office will give me back my originally quoted interest of 6.75%.[I just won a very small battle, I know that eventually I will be winning wars].
Thaaaaaaaaaaaaaaankssssssssssssss!
Sincerely,
GREEKVESTOR
Re: Amen Hank! - Posted by GREEKVESTOR
Posted by GREEKVESTOR on October 19, 1998 at 13:03:53:
Hello,
In my case, .25% increase from this bank will increase my monthly P&I by appr. $20, or, appr. $3,000 over the life of the loan, at 30yrs.
Hank, it’s also the principal behind this situation, which is “A major US lending institution not backing-up its commitment”.