Last month, we decided to get with the 21st c. and refinance using an on-line mortgage company. We went out to Lendingtree, filled out an app, got an offer within 2 days for a great rate. The mortgage company that sent the offer was courting us, via e-mail. Every day or so, I’d have a message from them (Loans Direct, if this makes a difference). We applied. They accepted. The house appraised. They set up a closing date. We signed.
That was on Friday, the 8th of June. They’re supposed to pay off the old mortgage and cut us a check for 7 grand for home improvements. We waited a week, figuring that, even with UPS Red, the mail takes time. We’re in Wisconsin, they’re in CA. Nada. And, although they were e-mailing us regularly for 2 weeks, not another word from them. We called. They said that the appraisers didn’t get the paperwork in, they were busy, yada yada. It would be another week.
I understand that things are busy. BUT I DON’T CARE! We have the option of canceling the deal in the first 30 days, but I don’t really want to go through all this again. To add to the pressure, we’ve got a roofer set to start, as soon as the weather clears, and we need the check from the mortgage company to pay him. I’ve been praying for rain (very successfully) and we’ve stalled the roof for 2 weeks, but they’ll start soon and when they’re done, I need that money.
Well, the 2nd week’s almost up. So, is there any legal pressure I can apply, to move things along? Are they obligated to pay us at closing? If they couldn’t, then why the hell did we close? I’ve had 3 morgages before this, and have never been in this half-assed situation before.
Did the loan close? Was it recorded? Did you talk to the Title Company? Something sounds fishy here.
If it closed, as you said, the funds should have been distributed immediately. If the appraisal is holding things up then the loan hasn’t been funded and you haven’t closed yet.
You need to find out who the escrow officer is and get a status on the refi. If everything closed then you should have your money… if something went wrong, ie. the mortgage company is dragging their feet for no reason… I would get out of the deal ASAP.
Oh… and postpone the roofer a few months… you don’t need that kind of pressure.
I am not a mortgage broker but I am a commercial real estate agent and per dolphinboy it sounds like there is some confusion as to where the process stands or they aren’t being real clear as to how their loans are processed. If an appraisal result is still pending then I don’t see how the loan has “closed” unless this is some unusual type of loan origination procedure, that I’ve never seen, where they have a “dry” (no monies exchanged) closure in anticipation of the appraisal result. If, as you say, “the house appraised” then the appraisal paper work is (or should be) complete.
Closing or settlement is typically the point at which the proceeds are distributed and you have to sign numerous legal documents relating to the deed, title etc. If this has not been done then it sounds like your loan is still in process and you should not be making any commitments until it is finalized.
If you have not gotten your money by the end of next week and I was to hazard a guess as to the problem it would be this. There are a ton of residential re-finances happening currently due to the favorable rates. Many mortgage brokers are seriously backed up and are making excuses left and right. I would suspect that the problem is most likely that the mortgage company still has some level of final review pending and is trying to keep you stroked until they can catch up. But then again I could easily be wrong.