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Old 10-17-2012, 03:51 AM   #1
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Default Home Refinance Nightmare

Well, probably not that bad but it has been a real headache for me and I have spent a lot of time on this.

I was told no appraisal needed by the loan officer (dealing with 2 people here) which was true, under the terms for a Fannie may loan it is not. BUT they found that the township was entered for the town on the original loan papers so they requested an appraisal at my cost of $450. When I explained the reason I was told I could try calling customer service which I did and they said the correction was easy so they got me in contact with the right person and they generated paperwork (I had to fax them our tax records) for the correction which needed to be signed and notarized which we did last Friday. Today we got a letter in the mail form the loan office (keep in mind this is the same bank) with the address correction to the existing loan. So if they were to check now the address would match the application address which is correct. Keep in mind also this process took over a month from start to finish.

The problem? All along my loan processor (the second guy) keeps insisting I need an appraisal regardless because I cannot go back in time to change the address even if I get it corrected. He said that is the process and that is that. He said get an appraisal by Friday or the application will be canceled. Keep in mind also we have until Dec 1 to close the loan. All other requirements have been satisfied, only the address (appraisal to him) is outstanding.

Why is this guy being such a jerk? Why can't they re-verify the address now and see it was officially changed by them, the same bank? Why is everyone else including the loan officer saying this should work but this guy (loan processor) keeps saying no. The address is corrected now. I even asked the appraiser how he would verify the address and he said he would do it the exact same way (tax documents) as they said they would.

Is this just a excuse to get an appraisal done?

I am so pisssed now, what can I do? The loan officer (the nice guy) even said he can extend the closing date if needed, it is done all the time. He is even seeing if the bank will pay the appraisal fee if it has to be done (% rate adjustment).

I feel this other guy is taking the easy road and being a bully because he has the power to deny the refinance.

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Old 10-17-2012, 11:03 AM   #2
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Sorry about your headache. Hope it resolves quickly.

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Old 10-17-2012, 03:32 PM   #3
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He's covering his butt. And if you get the appraisal, don't be surprised if it feels like a prostate exam and then comes in low. They're all covering their butts now since they all got beat up after housing market crash. At this point I would weigh my options. The appraisal is $450. Although, you don't necessarily have to use their appraiser. You could shop around. I don't know how much you're into this already in terms of any up front costs, but you could just find another bank. They are all charging about the same rates right now, and the rates aren't going to increase much if any in the next few months. I just went through a refinancing myself. I had an appraisal. The whole process took maybe 30 days to complete.

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Old 10-17-2012, 04:57 PM   #4
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I was under the impression that you almost always have to get an appraisal for a refi. When my wife and I first got our house, interest rates dropped over 1% within the month. That time we didn't need an appraisal since we had just gotten one while buying the house. This was a few years ago. We just finished our 2nd refi and had to get an appraisal.

I think the most frustrating part is when you are being told two different things from the same company, so sorry to hear about your misfortune.

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Old 10-18-2012, 03:03 AM   #5
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I called the woman who made the address change and she was going to contact the two guys handling my refinance to ask why her address correction to the loan was not sufficient proof of address. She said this change gets verified by the county tax office. I also called customer service and asked to speak to their managers. Customer service called my loan processor and got his manager's name. Was told the manager was in a meeting so I got his voice mail, waiting on call back.

In the meantime I got emails from both of the men handling my loan. The one explained that the appraisal not only would verify the address but also provide home value and condition. Well I called him out on that. First I was told no appraisal needed, then I was told it was needed to verify the address, now I am being told it also will provide home value and condition information. He then told me yes, in this situation an appraisal is not usually required but the address conflict made it necessary, the home value and condition will just be part of the appraisal. Well, to me that explains it. They are looking for a reason to order an appraisal even though one is not required and the address issue was a perfect reason. Now that the address has been corrected they are sighting other reasons.

Bottom line, I was told no appraisal needed, I fixed the address issue, it no longer is an issue....if they now want an appraisal they should pay for it. At this time they have no justification to request one except to satisfy their concerns. Again, I was told no appraisal needed with this loan. By the way, the other loan officer is looking into that option of them paying for it.

What bothers me also is this is what they do. What turns out to be a reasonable cost in the beginning winds up costing much more. At this point they would have me close to $700 in cost BEFORE they even approve the loan. I have heard so many people get screwed this way, pay all kind of fees then have their loan denied or their refinance winds up costing hundreds sometimes thousands more than estimated. I am trying to cover MY ass.

The way I see it, you tell me this, don't change it to that later.

Thanks

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Old 10-18-2012, 03:08 AM   #6
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Quote:
Originally Posted by JJL View Post
He's covering his butt. And if you get the appraisal, don't be surprised if it feels like a prostate exam and then comes in low. They're all covering their butts now since they all got beat up after housing market crash. At this point I would weigh my options. The appraisal is $450. Although, you don't necessarily have to use their appraiser. You could shop around. I don't know how much you're into this already in terms of any up front costs, but you could just find another bank. They are all charging about the same rates right now, and the rates aren't going to increase much if any in the next few months. I just went through a refinancing myself. I had an appraisal. The whole process took maybe 30 days to complete.
Do you think they really care to keep my loan? They should try harder if they do rather than threaten me to cancel the application if I don't do as they say regardless of the upfront agreement.
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Old 10-18-2012, 03:12 AM   #7
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I was under the impression that you almost always have to get an appraisal for a refi. When my wife and I first got our house, interest rates dropped over 1% within the month. That time we didn't need an appraisal since we had just gotten one while buying the house. This was a few years ago. We just finished our 2nd refi and had to get an appraisal.

I think the most frustrating part is when you are being told two different things from the same company, so sorry to hear about your misfortune.

I don't understand the exact reason but it has to do with it being a fannie mae or fanni mac backed loan. I believe it has to do with the market bottom dropping out and people underwater in their loans due to what they blame the banks for causing in the first place. I think it is a govenment bailout so to speak. I am sure the banks are not doing this because they want to, but because they have to. I mean if not for being a FM or FM loan given between certain years I would not qualify.

I feel bad for those who are underwater but don't qualify for that exact reason.
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Old 10-18-2012, 12:13 PM   #8
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I have a buddy who bought his house on a short sale after the market crash. For three years he made an extra $200 toward his monthly payment so theoretically he was gaining ground on equity. When he went to refinance, his bank said they wanted an appraisal, so he paid the $475 to get one thinking it was just a formality and the cost of doing this kind of business. The bank sent out their guy, and the official appraisal came in almost $40k less than his loan amount. Obviously, the bank stopped his refinance and now he's kinda screwed.

When I refinanced, it was a streamline process, so the info defaulted back to the original paperwork and no appraisal necessary. In my mind, if they require me to jump through ALL the hoops, then I'm going to do it my way. Go to a mortgage broker. He will likely find you the best deal, and if he wants to get paid, he will make sure that the mortgage gets done. If your bank isn't ok with giving up your mortgage, then they will help you out a little bit on this.

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Old 10-18-2012, 01:36 PM   #9
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Do you think they really care to keep my loan? They should try harder if they do rather than threaten me to cancel the application if I don't do as they say regardless of the upfront agreement.
I don't think they really care much about it. It's getting to be more of a hassle for banks to generate loans. Not that this is a bad thing, but they were just rubber stamping everything up until a couple of years ago. Now they actually have to spend time researching the viability of an applicant. So as bad as it sounds, it's all about not writing bad loans (or at least showing they followed all of the rules) as opposed to customer service. Plus, if they're like most banks they really don't care about the loan itself. They are just trying to collect fees associated with the loan generation. They'll probably sell it off as soon as the ink dries.
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Old 10-18-2012, 01:46 PM   #10
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OP - Start this same process with a different bank. 2 reasons 1. it will give you competing numbers and leverage. 2 the old bank doesn't want to lower your rate (although the loan officers get paid to close a new loan) but a new bank gets both the closing and the interest on the loan.

As for the 'no need to reappraise' that is a feature of the Federally backed loans (fanny and freddie). There are conditions like wanting to refinance for what you have already ie no equity or any changes. The address counts as a change, and there might be a serious issue there legally if that is true. Start going through your documentation of the previous appraisal and see if it has the correct address. Also check your prior closing papers and original loan info. When you go to a new bank, it will only care about that sort of stuff, not what your current bank has on file.

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