Mortgage Broker Rant

[hardtrailz400]

Young couple buys foreclosed house. Both have jobs and find a way to make the deal done.

Then find out the mortgage lady was not smart enough to include the homeowners insurance in the closing, so for 2 weeks have been in an uninsured home. I did not think you could get a mortgage without homeowners insurance, but they wanted our money I guess so they did it.

Now that I found that I am Uninsured and thought it was in closing as was agreed upon very early in the process, I thought it would be appropriate to have them pay for their mistake and take care of the insurance with their commision or call it advertising so they dont get their name drug through the mud as I am about to do. However they responded with rather curt email that it was our responsibility to have the home insured and we could pay it or unclose the house and go throughanother closing where we would be required to bring additional money for insurance to closing. I did not screw up. they did. I do not feel it is my responsibility to pay what was to be included in closing.

DO NOT DO BUSINESS WITH REGIONS BANK....ESPECIALLY RENEE MORALES!!!

I work in Real Estate as an Appraiser and no one I have spoken with can believe some of what she made us do and that she would close a loan without the home insurance in place.

Protect yourself and loved ones. Go somewhere respectable if you want to buy a house or refinance.

 

[Lucas156]

Wow man that is ridiculous. I have heard some crappy stuff about BOA too...

 

[nighthawk80]

Dude that sucks!! I'd turn them in to the BBB.

 

[Prometheus]

Just an FYI they only dropped the ball on not verifing you had gotten the home owners insurance.

I have never seen or heard of a cmopany that buys home owners insurance for you. You pick the company, decide your coverage (at a minimum the loan value) and then the mortgage company verifies it.

At that point you choose to have an escrow that would "pay your ins for you" but out of money you pay in extra every month on top of you P&I payments.... aside from making the first years payment up front, either prior to or on the day of closing. Hence your confusing about the home owners ins being "part of the closing costs". It is... but it isn't.

You both dropped the ball. However, as a (I assume) first time home buyer, it's easy to get swept up in all the hussle and bustle and not fully read the requirements and federally mandated disclosures provided.

Live and learn. You won't get a dime from the mortgage company for home owners ins. You *MAY* be able to get them to waive/reimburse part of their bank fees, if you are tactful and speak to the right ppl. Doubtful, but you might.

Also, since they missed putting your home owners ins into a escrow (you may have unknowingly signed off on that BTW!) you need to find out if they are collecting in an escrow to pay your property taxes. Nothing sucks worse than realizing you have 30 days to come up a years worth of property tax when you aren't expecting it.

Keep in mind YOU are ultimately in the wrong here from a contractual stand point. If they want they could take your house (for failing to have home owners ins) and you'd be doubly screwed.

Sucks, but thats the way it. Always read everything. Never assume. Real Estate is cut throat. Goes x2 for banks.

I'm closing on a new house in 2 weeks. I'm getting my final paperwork the day before so I can fully read it and review it. I can never understand how ppl sit down at the closing table and "skim" the paperwork having never have seen it before (estimates and good faith are NOT the contract) and sign off on it like some congressman in washington dealing with the pATRIOT act. It's absurd.

Ps. get that ins ASAP. It's your butt on the line, not the banks.

Pps. I'm sorry to see a first time buyer getting jammed up. Keep a level head.

 

[colt45er]

Couple things....GET INSURANCE ASAP, even while they are messing around get it to CYA!!!

Next, I am sorry that you went through a bad closing experience with her. I do not know her nor have I ever been affiliated with Regions bank. However, this is the reason that homeowners, especially first time homeowners need to read the paperwork!! Yes it is a lot, yes it will take time, yes it will probably **** off the closing agent, but so what.

We carry firearms to protect ourselves in the 1 in a million chance that something bad will happen. We wear a seat belt because of the 1 in probably 1000 chance that something will happen. Why not read the paperwork to ensure that you are not one of the 3 in probably 10 that sign loan documents to find out they are not what you were told.

There are some good mortgage brokers out there and some bad ones....their are good car dealers and bad....

On her part it sounds like she screwed up, plain and simple. I have been intentionally scammed before and looking back most of the time it was my fault because I did not read something, ask questions etc.

Once again, I am sorry she screwed up and you had to go through this, but please read the documents next time. If you don't understand something, ask and refuse to sign until you do. Homes are big investments, probably the biggest most will ever make.

Just my don't hate me.

 

[hardtrailz400]

We have some in Escrow, what we dont have is the first year of the policy paid for.

They changed the paper work at 7 pm the night before closing and still we had to write an 18 check at the closing table because they calculated something wrong.

Since our payments were based on mortgage principal and interest--plus taxes--plus insurance to get our 800ish payment. I would think that if I do pay the insurance out of pocket my payment would go down.

I understand we have to pay it and would have at closing, however they told us at closing that we were good to go and the next thing we paid was the first mortgage payment. if I had not gone back over the paperwork, No one would know we did not have insurance.

I know I will have to pay, since thats how banking works--screw the little guy that is trying to afford a couple gallons of paint for the new house--

HOWEVER

I post this to give others knowledge so they do not end up in the same place or try to work with this horrible mortgage lender. All this could have been avoided with communication and a little consideration. I waswronged. I understand the money needs paid and I will pay it, but I will try to get any penny I can from them for the pain and suffering I have been through.

Thee BBB has been contacted and I am posting this review of them on every consumer site i can find. I dont have money to fight with them, but I do have time and the internet

 

[colt45er]

We have some in Escrow, what we dont have is the first year of the policy paid for.

They changed the paper work at 7 pm the night before closing and still we had to write an 18 check at the closing table because they calculated something wrong.

Since our payments were based on mortgage principal and interest--plus taxes--plus insurance to get our 800ish payment. I would think that if I do pay the insurance out of pocket my payment would go down.

I understand we have to pay it and would have at closing, however they told us at closing that we were good to go and the next thing we paid was the first mortgage payment. if I had not gone back over the paperwork, No one would know we did not have insurance.

I know I will have to pay, since thats how banking works--screw the little guy that is trying to afford a couple gallons of paint for the new house--

HOWEVER

I post this to give others knowledge so they do not end up in the same place or try to work with this horrible mortgage lender. All this could have been avoided with communication and a little consideration. I waswronged. I understand the money needs paid and I will pay it, but I will try to get any penny I can from them for the pain and suffering I have been through.

Thee BBB has been contacted and I am posting this review of them on every consumer site i can find. I dont have money to fight with them, but I do have time and the internet

hearing more about it, especailly if you asked at closing and they said it was taken care of, I would be all of the phoen with them. Talk to the boss and then their boss.

Don't mess with emails, it won't get you anywhere. Call and ask for the regions branch president. then regional. etc

 

[luvall]

The entire industry is a mess these days. The rules for banks and lenders change daily. The underwriters are CYA with unreasonable requests for documentations. I don't have the time or the desire to tell you the horror story of my closing last week. SNAFU is the only thing that comes to mind.
If the government is hoping to restore the economy via the housing industry - it isn't going to work with all the new and constantly changing regulations.

 

[hardtrailz400]

Phone calls have been made, but leaving messages that dont get returned does not satisfy as much as writing it all out and hitting send. Emails are about the only thing that has gotten a response.

Communication has been difficult the whole time and now that an error on their part is showing, they want nothing to do with me.

 

[femurphy77]

As Prometheus said, they dropped the ball on not telling you to get insurance and not verifying you had it. I just sold a house but so as not to threadjack I won't go into the that National City Bank caused. They still don't care because at this point the banks know that Uncle Barack will bail them out. Not much has changed otherwise, we even got $2k more than I paid for the house a mere 2 years ago, not enough to cover all of the associated costs but I didn't have to sell for less than I paid. Good Luck Dude.

 

[femurphy77]

Dude that sucks!! I'd turn them in to the BBB.

The BBB is a joke, if you file a complaint against one of their "Dues paying members" you'll see that the file conveniently gets lost. Anymore when I see a sign on the door of a business that says the establishment is a memeber of the BBB I immediately go to yellow alert!

 

[Prometheus]

We have some in Escrow, what we dont have is the first year of the policy paid for.

They changed the paper work at 7 pm the night before closing and still we had to write an 18 check at the closing table because they calculated something wrong.

Since our payments were based on mortgage principal and interest--plus taxes--plus insurance to get our 800ish payment. I would think that if I do pay the insurance out of pocket my payment would go down.

No. The home owners insurance is not built into your P&I (your PMI maybe built in though). It may all go into one check, but the money for taxes and home owners ins. go into the escrow account.

Be advised that as property taxes increase so will the escrow portion of your mortgage payment. When we moved in here 6 years ago my payment was 33% lower. Since then Lake county has jacked my taxes WAY up. My P&I are still the same, but the money they take for the escrow has gone up.

Also if there is a major overage or shortage at the end of each year, you may get a credit back on your escrow, or have to payout/roll it into the following year.

If you are fixated on that $800, just realize the escrow portion is subject to change. Pissed off about it? Go raise hell in Indianapolis and your County government seat. They are the cause for that.

I understand we have to pay it and would have at closing, however they told us at closing that we were good to go and the next thing we paid was the first mortgage payment.

They were under the impression you already had it. They obviously never verified. You may have inadvertently said or signed off on paying for your first years mortgage payment PRIOR to closing. Have you read everything yet? If not, you better do it.

if I had not gone back over the paperwork, No one would know we did not have insurance.

I know I will have to pay, since thats how banking works--screw the little guy that is trying to afford a couple gallons of paint for the new house--

HOWEVER

I post this to give others knowledge so they do not end up in the same place or try to work with this horrible mortgage lender. All this could have been avoided with communication and a little consideration. I waswronged.

Yes you were wronged. First and foremost by yourself. You are responsible for it. The mortgage people are responsible for verifying it (or in this case not verifying it), not for setting up and paying your premiums unless you explicitly arranged that. Had you not dropped the ball first, the fact they missed it wouldn't now be an issue.

I am not a fan of the corrupt bankers by any means. I am simply pointing out that you screwed yourself on this, whether intentionally or not. You aren't some 'helpless victim' here.

I understand the money needs paid and I will pay it, but I will try to get any penny I can from them for the pain and suffering I have been through.

Thee BBB has been contacted and I am posting this review of them on every consumer site i can find. I dont have money to fight with them, but I do have time and the internet

Don't forget to put yourself on that list, lol.

Honestly the majority of banks and all of the larger banks suck and screw everyone. No doubt.

This is an issue where you cannot find them fully at fault for your lack of preparation and work on their subsequent oversight.

The lesson here is: Read everything. Every time. No exceptions.

The good news here is it was a lesson learned that is not costing you an additional money (you wouldn't have had to pay anyway). You lucked out there, be thankful.

AND FYI: NEVER and I mean NEVER deal with the crooks at McColly realty. I've dealtt with 3 different offices. All shady.

 

[hardtrailz400]

"Yes you were wronged. First and foremost by yourself. You are responsible for it. The mortgage people are responsible for verifying it (or in this case not verifying it), not for setting up and paying your premiums unless you explicitly arranged that. Had you not dropped the ball first, the fact they missed it wouldn't now be an issue.

I am not a fan of the corrupt bankers by any means. I am simply pointing out that you screwed yourself on this, whether intentionally or not. You aren't some 'helpless victim' here."

I specifically requested that it come out of closing. I could have delayed closing and lost my 5% fixed rate since it would have pushing closing past the 45 days I had the rate for, but when the woman screws up so many times that they are changing thing 18 hours before closing and I have a job to pay for this house, I was not given much time to review it.

I did howver find out from the Higher up at Regions that with my efforts and the review of the emails from us and the loan officer that we were indeed mistreated and that an apology was not enough. He is going to have a full year of insurance paid for by Regions to try and make up for the trouble Renee Morales put us through. he agreed it never should have happened and is doing his part to make it good. Hopefully he also makes sure she finds a new line of work and doesnt do this others.

So the little guy got lucky and found a good person to review the facts and understand that they had been wronged. The good person also had the ability to make up for the errors and did so. I am glad to know some work and effort and a few good men can get things right again.