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Trouble with the bank
We were supposed to close last Thursday 9/15. We kept contacting our mortgage reps ever since we put in our bid on August 1 to see what we needed to do - we completed every bit of paperwork, etc. that they wanted, and kept getting told that everything was in order and the 15th should work.
We contacted them again on 9/14 to see if we were cleared to close on 9/15 (the bank has never contacted us, it's always us calling/e-mailing them). They said that the second appraisal that they ordered because of Hurricane Irene, which they only got around to doing on 9/12, was delaying things and we couldn't close on the 15th. We kept hearing, "It shouldn't come in any later than today, we will call you as soon as we know," and then we wouldn't hear from them again until we called them asking for an update.
Yesterday MH talked to them and they said that our mortgage rate's lock-in is only good until 9/30, after which we have to pay a fee to keep it at the same rate. Why should WE have to pay when THEY are the ones who don't have their act together to close on time??? And today MH asked about the exact amount for the bank check that we'll need to bring to closing, and the mortgage person said that he'll give us an "estimate" ... if we're over, they will give us a refund check, and if we're under we can write them a personal check to cover the difference. I relayed this information to our lawyer who said that her office would never accept a personal check and she's surprised that the bank would even suggest this.
I feel like we're just getting screwed left and right by this bank. And it's a major national bank, not some little random po-dunk place. Even if everything clears up this week, it's making me kind of sick to know that we'll be dealing with them for the next 30 years. MH was talking to a friend of ours who said that his bank (not the same one we're using) somehow miscalculated their escrow account or something like that, and now our friend needs to pay an extra $300 a month to cover the $4k of back taxes he owes.
This was mostly a rant ... but has anyone ever dealt with anything like this? Once you finally closed, was that the end of your problems or did it make the mortgage payments another nightmare? At this point I'm almost ready to tell the bank to shove off and find a new place to get our mortgage. But I have a feeling that this is just a case of every mortgage company screwing people over just because they can.
Re: Trouble with the bank
When our bank was nonresponsive we called to complain and threatened to take our business elsewhere and things immediately got better. I would call the branch manager and if you don't feel any better I'd start shopping around.
Just stopping by... but had to comment.
My sister just closed on her home a month or so ago. However, the closing date kept getting pushed back and she was worried about her rate expiring. Well, because the date kept getting pushed back because of an "act of God" (power outages due to flooding) she was able to keep the rate without paying.
It's possible Hurricane Irene might meet that "act of God" clause so you don't have to lose your rate.
Good luck!
-- Thoughts become things, choose the good ones! --
I am not really seeing anything here that is making me think your situation is that THAT much worse then anyone elses. Most loan closings get pushed back a few times. Most people don't get an exact amount to bring to closing until an hour or two before - and most people don't have to deal with a hurricane complicating the matters. So I would say that while super annoying- this is pretty par for the course with buying a home. First time buyers always seem really frusterated with how complicated the process seems - but there a lot of pieces to this puzzle. It will all work out and you will love your house and one day you will be crazy enough to want to sell it and start all over!
It is not uncommon to not know the exact amount to bring to closing. A lot of times people will not find out until the day before or even day of closing how much to bring.
Your lawyer is incorrect about writing a personal check for the amount under the closing costs. I have attended numerous closing with DH where the buyer has written a personal check for the difference. It has actually become quite common for people to bring bank check for majority of the closing cost, but write a personal check for the amount under estimated.
Thank you for the replies.
I feel like we've been getting a bunch of different stories from everyone involved as to what's "normal" ... the mortgage reps, the lawyer's office, our realtor, our loved ones. Everyone's got a different opinion on what should be happening at this stage in the game. I'm glad to hear that our situation isn't unique, but I still feel a little disheartened at the thought that some of the people involved in this process may not know exactly what they're talking about but they're feeding it to us like it's Gospel. Not a great feeling.
Oh well. Hopefully it'll all work out. The earliest we can close will probably be Thursday 9/22, so we'll stay on top of everything and do what we can to keep it moving along.
I appreciate your help!
Is this your first home purchase? I ask because backed up closing dates are not uncommon (I know that I have only had one close on the date it was supposed to). Closing date changes are very common (read a few pages on this board and you'll see that to be the case). I don't get the feeling they are "screwing you over." I understand you are frustrated because things are not moving on the timeline you had hoped, but it really isn't out of the ordinary (the hurricane threw a wrinkle into the situation, but it isn't something that can't be dealt with). Today is the 20th. You have 10 days to close. It isn't out of the question.
I am suprised your lawyer suggested that the practice of accepting a personal check was out of the ordinary. We have closed with three different law offices and all three have told us the same as your bank. If the closing is more than expected, then they will take a personal check for the difference...if it is less, they will issue us a check. It is pretty common practice.
My Valentine Bookends (2~13~13, 2~15~09)
Yes, it's our first house.
It's not really the change in closing date that's making us feel like we're being cheated ... we know that paperwork is a PITA and stuff comes up.
It's just that we're getting completely opposite pieces of information from all sides. The bank telling us to write a check vs. the layer telling us that that's not possible, the bank telling us that we'll be charged for an extended lock-in rate vs. our realtor saying that they can't do that, etc. I read several posts on this board where people said that they didn't find out the exact closing time until a couple hours ahead of time and my father flat-out told me that I was 100% wrong about that, just because it didn't happen when he bought his house. We don't know who to listen to.
I know that every circumstance is different. The frustrating thing is the suspicion that there are people who are lying to us. I'm sure it's just a case of everyone making their best estimates and not outright lying to us, but it's still frustrating to get a new story every day. Especially since we dealt with trying to buy a short sale for six months and then bailed out because it went nowhere. We're just really burned out and we want this to finish.
I'm grateful for your comments and I'll share them with MH tonight.
I think the mortgage and realty business is full of people that over promise and under deliver. They are all 100% commission so they will say just about anything to make a customer happy. And by the time you are really unhappy it is typically too late to pull out, and I think they use that to their advantage. I am sorry you are getting the run around. Just be sure to double and triple check all your documents and if someone makes a promise, request it in writing. If they won't give it to you in writing, then I would take that promise with a grain of salt.
If anyone is still reading ... they pushed back our closing date. AGAIN. And they can't/won't give us a solid answer as to when our application will go through.
They also keep emphasizing that if we go past the lock-in's final date, we will have to pay to extend it. And the mortgage guy just laughed at MH and told him not to "rush" them. They're already a week overdue!
What can we do about this? Just sit back and wait while they just take their time? We're so beyond frustrated at the way they're treating us.