Lender wants more down money 10 mo into note? - Posted by SportLa Investor

Posted by James Strange on August 21, 2003 at 05:01:14:

Remember a GFE is only an estimate it is not carved in stone.

Can they do this? I don’t know.

Are you in Louisiana? If so check this link out http://www.ofi.state.la.us/

Lender wants more down money 10 mo into note? - Posted by SportLa Investor

Posted by SportLa Investor on August 20, 2003 at 21:27:57:

My lender “Amsouth” did a 90% cash out refy about 10 mos. ago. They contacted me the other day and said my loan was supposed to be 85% LTV. They admitted that they made a mistake. Now they want me to put 2500.00 more down on the note. They said at 90% LTV my loan is not marketable.

They said the Errors and Omissions I signed at closing had them covered for this type of mistake. I thought this was for if they needed me to come back and sign something.

This seems to me they are changing the terms of the loan. My good faith estimate is for a 90% cash out refy.

Can they do this? Has anyone heard of this before?
What can I do to fight this?


Re: Lender wants more down money 10 mo into note? - Posted by Chuck

Posted by Chuck on August 24, 2003 at 17:49:27:

I’d pay attention to Chireen, but let them know what you intend to do if pushed. Otherwise, if you blink (miss a payment} they’ll accelerate the loan because you defaulted, and generally make life miserable. Let them eat a little crow, and learn from the lesson.

Re: Lender wants more down money 10 mo into note? - Posted by Chireen

Posted by Chireen on August 22, 2003 at 01:09:03:

Wow, in my MANY years in this business, I’ve never heard of a mtg. co. doing this. I was under the impression the E&O statement is just as you said, if you forgot to sign somethings, etc. but NOT changing the terms of your loan. Do you have a copy of the E&O statement you signed? I’d read it over very carefully. If not, GET IT IMMEDIATELY.

The Lender also has a couple of other problems with requiring you to put down more money. First, sure the GFE is just an estimate, but the HUD-1 (Settlement Statement) isn’t. And neither is the Truth-In-Lending Statement you signed AT CLOSING. Based on what they are saying now, they provided you with an inaccurate HUD-1 and TIL when you refinanced. HUD might have something to say about this. Go to their website www.hud.gov and click on “Search/Index” at the top right portion of the screen. Then scroll down until you get to “RESPA”. Your loan DOES NOT need to be an FHA loan for RESPA to apply. It applies to conventional loans as well. Read all the info on their website. Then click on “Comments and Questions” on the bottom and email them with as much detail as you can about what has happened.

The Lender has other problems as well, they had you sign a Promissory Note and they filed a Mortgage (depending on how they do that in your State) with the terms of your loan, which would have been the 90%. Just because they decide now that it isn’t marketable doesn’t change your signed contract (Note and Mortgage) with them. The people at RESPA should help you tremendously. I’ve had them respond to me within 48 hours anytime I have had to email them. Also, you can contact your State Dept. of Banking and Finance if mortgage companies are licensed and regulated by a State Agency where you live. They may be extremely interested to hear all of this. I would also immediately send a letter to your Lender (via FAX and also follow it up with a certified letter) detailing your conversations with them and asking for legal proof that they have the authority to change the terms of the signed Note, the HUD-1, and the Truth-in-Lending 10 months AFTER closing, and without your permission, knowledge or agreement. I would definitely state that a copy of this letter is going out to RESPA, your State Dept. of Banking and Finance (whatever they call themselves in your State, if any) and your State Attorney General Office (as they also regulate consumer complaints regarding credit, and any other agencies you can think of that would help you. Let your Lender know you are getting regulatory agencies involved. That might be enough to stop them from proceeding trying to collect the add’l money.

Here’s my thought - the mortgage company changing the terms of your note & mortgage AFTER the closing because the loan isn’t “marketable”, would be just like you deciding you paid too much for the house and write them telling them they need refund you $2,500 due to the fact that your house isn’t “marketable” at that price.

I’m very interested to hear back from you about how this proceeds. Feel free to email me at chireen@usermail.com

Good Luck!!!
Hope this helps!

“appreciate me now…and avoid the rush!”

Re: Lender wants more down money 10 mo into note? - Posted by Felix

Posted by Felix on August 21, 2003 at 11:07:48:

Call a lawyer or put the money down.