anyone else having problems with KB Homes mortgage rates? (Cary: for sale, insurance)

[sacredgrooves]

John,

I am doing exactly what 102294 mentioned. I am using Beazer mortgage for my house in Holly Glen to get the 1/2 off design studio, then will turn around and refi it for basically free with either my credit union, or my wife who is a mortgage broker...whoever has the best deal lol. I believe Beazer mortgage problems are related to the subprime markets and pushing through buyers that shouldnt be buying. I am just getting into the process so I am not sure if there is a pre-pay penalty yet or not, but if there is it usually only runs a grand or so. Small price to pay for 20 grand off at design studio.

[JohnE1000]

Originally Posted by Heathercp

JohnE1000,

When I saw your post I had to run and grab last Thursday's WSJ. I knew I'd read something about Beazer Homes.

"Beazer Homes USA Inc., facing a federal investigation into its mortgage-lending practices, said it fired its chief accounting officer for attempting to destroy company documents." WSJ, June 28,2007, A2

Further "Allegations of improper lending practices by Beazer's in-house mortgage company emerged in the winter, when groups of home buyers in North Carolina alleged that the builder steered them into mortgages they couldn't afford, leading to widespread foreclosures." WSJ, June 28,2007, A2

Buyer beware, I'd say.

Good luck to you!

I appreciate sharing the info. I am aware of the FBI investigation. The only reason I am going with Beazer is the location. The house will be 3 miles from work. Also, I am not going to borrow more than what I can afford.

[TBLTZ]

KB uses Countrywide and I would avoid them like the plague. They are the worst people. They never get back to you and are very unprofessional. Unless you signed a contract saying you would use them find someone else. Also If you pull of your contract you can't get your money back unless you can afford the mortgage. But that is for the lender to decided. Also 1 1/2% is not that much more money. If he can't afford it now he couldn't afford it in the first place.

[rwally]

“I wonder if it is possible to close using Beazer mortgage, then refinance after that?”

“Anyhow, I refinanced 2 days after we closed with my credit union, got a rate 1% lower and only paid about $700.00 in closing costs as my credit union pays for everything else.”

“I am using Beazer mortgage for my house in Holly Glen to get the 1/2 off design studio, then will turn around and refi it for basically free with either my credit union, or my wife who is a mortgage broker...whoever has the best deal lol.”

You might want to consider asking the servicing dept if the rate can be reduced via a note modification. In other words, the company holding the note might agree to reduce the rate for a small fee rather than risk losing the income from servicing the loan should you refinance with another lender.

“When I saw your post I had to run and grab last Thursday's WSJ. I knew I'd read something about Beazer Homes.”

You might consider Googling the article “A Helping Hand In Builder Disputes” by Kenneth R. Harney. It has some very good info regarding RESPA violations and what can be done about them.

[JohnE1000]

Originally Posted by rwally

“I wonder if it is possible to close using Beazer mortgage, then refinance after that?”

“Anyhow, I refinanced 2 days after we closed with my credit union, got a rate 1% lower and only paid about $700.00 in closing costs as my credit union pays for everything else.”

“I am using Beazer mortgage for my house in Holly Glen to get the 1/2 off design studio, then will turn around and refi it for basically free with either my credit union, or my wife who is a mortgage broker...whoever has the best deal lol.”

You might want to consider asking the servicing dept if the rate can be reduced via a note modification. In other words, the company holding the note might agree to reduce the rate for a small fee rather than risk losing the income from servicing the loan should you refinance with another lender.

“When I saw your post I had to run and grab last Thursday's WSJ. I knew I'd read something about Beazer Homes.”

You might consider Googling the article “A Helping Hand In Builder Disputes” by Kenneth R. Harney. It has some very good info regarding RESPA violations and what can be done about them.

Thanks Wally. Can you keep me updated on your experience with Beazer in general- building quality..etc, and on your mortgage plan.

Good luck with your new home.

[sacredgrooves]

Originally Posted by JohnE1000

Thanks Wally. Can you keep me updated on your experience with Beazer in general- building quality..etc, and on your mortgage plan.

Good luck with your new home.

certainly, send me a PM or email to a1houseinspectors@gmail.com and I will be glad to keep you up to date. I inspect houses so I will be on top of the construction process... the builder wont like me very much lol.

[tsmithgolf2000]

Originally Posted by TBLTZ

KB uses Countrywide and I would avoid them like the plague. They are the worst people. They never get back to you and are very unprofessional. Unless you signed a contract saying you would use them find someone else. Also If you pull of your contract you can't get your money back unless you can afford the mortgage. But that is for the lender to decided. Also 1 1/2% is not that much more money. If he can't afford it now he couldn't afford it in the first place.

Some contracts have it written you can get your money back if you don't qualify for the loan but others clearly state you lose your earnest money even if you don't qualify. And I would imagine KB probably wrote the contract to protect them and not the buyer.

Also, 1.5% is probably $150-$200 a month, depending on the price of his townhome, so it's not chump change.

[VickiR]

I'm actually out of town...on vacation...heading to the beach but since like the rest of you, I'm addicted to this Forum, I can't help but say...

YOU SHOULD NEVER GO TO THE ONSITE AGENT WITHOUT YOUR BUYER'S AGENT!

You don't save any money as the commission is already built in to the price.

Your agent would have assisted you with the lender. Your agent would have asked if you WANTED to lock in. Your agent would have checked the good faith estimate to make sure all the fees were necessary. Your agent would have explained the BUILDER'S CONTRACT and made sure you were protected as much as possible.

So, now I ask...why didn't you take your Realtor with you???

When are buyers going to UNDERSTAND that its in their best interest to have their own BUYER'S AGENT with them???

Vicki

[JohnE1000]

Originally Posted by VickiR

I'm actually out of town...on vacation...heading to the beach but since like the rest of you, I'm addicted to this Forum, I can't help but say...

YOU SHOULD NEVER GO TO THE ONSITE AGENT WITHOUT YOUR BUYER'S AGENT!

You don't save any money as the commission is already built in to the price.

Your agent would have assisted you with the lender. Your agent would have asked if you WANTED to lock in. Your agent would have checked the good faith estimate to make sure all the fees were necessary. Your agent would have explained the BUILDER'S CONTRACT and made sure you were protected as much as possible.

So, now I ask...why didn't you take your Realtor with you???

When are buyers going to UNDERSTAND that its in their best interest to have their own BUYER'S AGENT with them???

Vicki

With full respect to what you said, not all agents are knowledgable or know what they are doing. Over half of the agents out there are rookies or part-timer, when one move to a new state finding the right agent could be like searching for a needle in a stack of hay. I am selling my home and buying another. I interviewd agents to sell my home and agents to find me a home. I talked to about 5 agents from different realties, in all of the cases I found them ignorants in most subjects.
Builders factor the buyer agent commision into the the price, and they are willing to go down in price if the buyer doesn't have an agent.
I am not encouraging anyone to go without an agent, I am just stating that finding the right and ethical agent can be very chalanging.

[VickiR]

Builders DO factor the cost of paying the onsite agent AND the buyer's agent that the buyer brings in.

However, the builder will not give you, the buyer, the commission if you do not have an agent.

The reason is that the price shows up in MLS and builders do not want the next agent to see that they lowered the price on the house.

Thats why I keep saying...the buyer is not going to save money by not having an agent. Please go back and read previous posts on this subject. I am NOT suggesting you call me...I'm just being as hones as I canwith you to tell you that there are so many reasons NOT to buy NEW CONSTRUCTION without someone to represnt you.

Vicki