Posted by James on August 10, 2003 at 24:51:28:
I need some input. I had arranged for a refinancing of my rental property With Ameriquest Mortgage. I have already a 6.5 % fixed rate, a First Mortgage of $114750, and a 2nd Mortgage of about $21000. My aim was to try to get both of them refinance at a decent rate. The loan officer I had seemed to be very friendly and co-operative at first, he assured me that I could get both of them done together at about 8 or 8.5% because for a rental property I could only get about 70 or 80 percent LTV. When the time came near to closing he started giving me different excuses because of my credit situation, he said my property was
under a BK, at the credit Bureau, which was causing problems. I didnot want my monthly payments to be over $1200. So he said I would have to use my wife
s income to help out, and I would need some extra infomation as well. Well, when the day of closing came which was Friday, at 6:00 pm, when my wife and I arrived, he didnot show up, only the person from the title company was there and that didnot seem right. When I was about to sign the papers, my wife and I notice that my address wrong on the first sheet,and the next sheet,and the next, that seem strange with all those mistakes. Then I ask what was my monthly payment and he said $1223, that was to much, and then I found out my percentage rate was up to 9.2%, I immediately called the loan officer at home, why he went home I dont know, but he told me, that because of the BK conerning my rental property was the reason, and I could refinance again in october. I went back and sat down and found more mistakes in the contract, such as addreses, they even had me down as having my own business, when they had my job statements, indicating, what I did for a living. I found out also that the escrow, and the home owners insurance was not included in the mortgage, and I would have to pay this out of my pocket which would have taken my payments up to about $1400, way out of my league. He also stated that I would have (7 days to change my mind, most companies give 3 days but Ameriquest gives you 7 days). I was even ask to say I made $5000 a month, and that was an out right lie, which I try not to practice, and to give a false reason why I had to file a BK. So when I got to the last page, I ask for the paper that stated I have 7 days to change my mind. He look and didnot see it, he left out of the room to find it, and when he returned, he was accompanied by another loan office, who gave an apology for the mistakes. He ask me what kind of property did I have and I said rental, he said, ohhhhh, that
s what the problem is, you have a rental property, and he said normally on rental property, a decision has to be made right away, and thats when my wife step in and said, you mean all these papers which we have not had time to read, and you mean to tell us this is it, and he said yes, so things got a little heated up in that room, because I said that`s the tittle person told us that, and he cannot take back his word, so he claimed that we were upset and told us to take the signed papers home and look it over and call back monday 8/11/03. I personally believe they just wanted to eat all the equity in my property which was appraised at $170000, by telling me that I could refinance again in october. I was really disappointed in the fact that no one called me back to discuss the payments and interest rates over the phone. I would like to get some input and feedback on this.
P.S. I`ve decided not to refinance.