Screwed by our broker... (loan, fixed rate, interest, escrow)

[illuciddreams]

sit back...relax..and get cozy. this might be a little lengthy..

So. My mom decided in June of 2007 to refinance her loan...she was in an adjustable....and the way the market was, her payments were flying sky high in no time...I worked at a title company...and used a broker (who I thought was a friend of mine) from across the hall to help us structure the loan to fit her needs....She was supposed to have a 270 loan fixed at 7% for the life of the loan...(keep in mind..she had a 690 credit score in all this)...Final numbers were supposed to come to $1260/mnth including her escrows.

closing day came...and we signed page by page...TRUSTING that the information on the papers was the same as the prelim docs drawn up...needless to say. the first statement came from Countrywide and her payments were 1580 with escrows. We called immediately...and went through the paperwork again only to realize we had been screwed. Her interest was 9.75 and he put her in a jumbo.

Now. with this said...we went back and forth with the broker for a good 2 months about this. he swore it was countrywide who made the error...and well, now? Now he's nowhere to be found...He told us we could restructure the loan after 6 mnths of payments...so we did that..we're on month 8 now..and still nothing. Countrywide wont help us to fix the problem...and I'm not sure where to turn at this point...foreclosure or sale is the only option...both of which im not too intrigued over...

If anyone can help or knows anyone who could, I would REALLY appreciate it. I feel aweful that my mom has worked so hard her entire life just to own her home..and because I trusted a coworker...she may lose it.

thank in advance

Lexi

[renriq02]

never trust the salesperson! trust only the document you read.

i would call an attorney...and show them the preliminary docs...and the docs that were signed.

[HappyTexan]

You signed legal papers you did not read ?
And..you work at a Title Company ?

You should have known better.

[tn2006]

270 you meant $270,000, if so,

270k, 30 year fix with 7% = $1796.32 (Princinple + Interest)
How do you came up with number $1260/month includes escrow ?

[TwiloMike]

Originally Posted by illuciddreams

sit back...relax..and get cozy. this might be a little lengthy..

So. My mom decided in June of 2007 to refinance her loan...she was in an adjustable....and the way the market was, her payments were flying sky high in no time...I worked at a title company...and used a broker (who I thought was a friend of mine) from across the hall to help us structure the loan to fit her needs....She was supposed to have a 270 loan fixed at 7% for the life of the loan...(keep in mind..she had a 690 credit score in all this)...Final numbers were supposed to come to $1260/mnth including her escrows.

closing day came...and we signed page by page...TRUSTING that the information on the papers was the same as the prelim docs drawn up...needless to say. the first statement came from Countrywide and her payments were 1580 with escrows. We called immediately...and went through the paperwork again only to realize we had been screwed. Her interest was 9.75 and he put her in a jumbo.

How did he get her into a $417,000+ loan amount without you or your mom noticing? A $270,000 loan is not jumbo.

Also, what possessed you and your mom to sign documents without looking over the terms? Really, friend or not, it's not his money he's playing with so you should have done your due diligence.

Now. with this said...we went back and forth with the broker for a good 2 months about this. he swore it was countrywide who made the error...and well, now? Now he's nowhere to be found...He told us we could restructure the loan after 6 mnths of payments...so we did that..we're on month 8 now..and still nothing. Countrywide wont help us to fix the problem...and I'm not sure where to turn at this point...foreclosure or sale is the only option...both of which im not too intrigued over...

Does your mother have equity in the property? In which state is she? Can she refinance and roll closing costs into the loan? Any bank should be able to help you here. On a conforming fixed rate loan she should be able to get a much lower rate. It may cost you another refinance but that's what I would suggest. Going to Contrywide with "my broker screwed me because I didn't read the paperwork I signed" won't fly.

If anyone can help or knows anyone who could, I would REALLY appreciate it. I feel aweful that my mom has worked so hard her entire life just to own her home..and because I trusted a coworker...she may lose it.

thank in advance

Lexi

Refi it for her. Pay her refinance costs.

[newtoli]

Did you sign the papers at closing that stated 9.75% interest?

[renriq02]

who performed the closing?

I'm sure another paralegal would have done so....
If this is the case, then you would've heard it from the paralegal

[newtoli]

Ok, I just reread the initial post and it seems you did not read the closing documents and trusted the broker and just signed.

Unfortunately, since you signed off on the closing documents, it looks like your only option to lower the rate would be to refi again.

[ChipL]

I agree, I honestly don't understand how you can work for a title co, in what looks like FL none-the-less, where everything changes at the drop of a hat and screw ups happen all the time, and not read your MOTHER's closing docs prior to having her sign. That to me seems ridiculous.

and I agree with the other poster, a 270,000 loan amount is not a jumbo, so I'm not understanding that part of it.

Sorry to come down harsh here, but you really should have known better, unless, of course, you've only worked there for a short time, in which case you should have had someone else at the title co explaining the documents to your mom.

On the broker's side, clearly there is something wrong, and never should a borrower, and her daughter be this confused on what has happened. I would ask around at the title co who they would use, as in the broker who never has any complaints at closing and the borrower's always seem to know what they are getting into, and get them to refi it. I'm not sure why foreclosure or sale are the only option unless she's not made the payments, if that's the case let us know, and we can see what we can come up with for suggestions for that.

[pghquest]

Originally Posted by illuciddreams

sit back...relax..and get cozy. this might be a little lengthy..

So. My mom decided in June of 2007 to refinance her loan...she was in an adjustable....and the way the market was, her payments were flying sky high in no time...I worked at a title company...and used a broker (who I thought was a friend of mine) from across the hall to help us structure the loan to fit her needs....She was supposed to have a 270 loan fixed at 7% for the life of the loan...(keep in mind..she had a 690 credit score in all this)...Final numbers were supposed to come to $1260/mnth including her escrows.

closing day came...and we signed page by page...TRUSTING that the information on the papers was the same as the prelim docs drawn up...needless to say. the first statement came from Countrywide and her payments were 1580 with escrows. We called immediately...and went through the paperwork again only to realize we had been screwed. Her interest was 9.75 and he put her in a jumbo.

Now. with this said...we went back and forth with the broker for a good 2 months about this. he swore it was countrywide who made the error...and well, now? Now he's nowhere to be found...He told us we could restructure the loan after 6 mnths of payments...so we did that..we're on month 8 now..and still nothing. Countrywide wont help us to fix the problem...and I'm not sure where to turn at this point...foreclosure or sale is the only option...both of which im not too intrigued over...

If anyone can help or knows anyone who could, I would REALLY appreciate it. I feel aweful that my mom has worked so hard her entire life just to own her home..and because I trusted a coworker...she may lose it.

thank in advance

Lexi

I agree with the other posters here. My banks always tell me ahead of time what the interest rates, and payments are on loans. Not only do they tell me but they have to send a preliminary estimate to you in writing. What did the original written estimate say?