No PMI at closing ?? (New Home: mortgage, lender, home builder)

[Dallas_Guy]

You signed a paper regarding 'errors and ommissions' at closing, agreeing to come back and fix any clerical errors.
Looks like someone screwed up.... but you will indeed have to go back and fix it or the constable may be at your door with eviction notice soon.

I do loans.... these people telling you that you have a contract and 'screw them' are giving you false hope.

If you finance more than 80% in First Lien Position, you will have PMI. It may be included in the higher rate or it may be an additional pmt on top of your lower rate.

As always, I suggest you contact a Real Estate Attorney..... But I have seen similar.

[dc53]

Well?........waiting with baited breath..

[No Prob Rob]

Looks as though I will not have to pay the PMI. The lender wanted me to come in and sign additional papers but my legal adviser told me not to sign anything but let them try other avenues. I have not heard a peep from the lender since I discussed the matter.

[nsumner]

Originally Posted by DallasLoanGuy

You signed a paper regarding 'errors and ommissions' at closing, agreeing to come back and fix any clerical errors.
Looks like someone screwed up.... but you will indeed have to go back and fix it or the constable may be at your door with eviction notice soon.

I do loans.... these people telling you that you have a contract and 'screw them' are giving you false hope.

If you finance more than 80% in First Lien Position, you will have PMI. It may be included in the higher rate or it may be an additional pmt on top of your lower rate.

As always, I suggest you contact a Real Estate Attorney..... But I have seen similar.

Dallasloanguy is absolutely right. If they take you to court, they are likely going to win because of the agreement you signed at the title company saying that you would agree to work with them if they ommited anything.

They may come after you or watch out if they put a lien on your house.

A couple of documents you want to check that you signed: Truth in Lending?? if the PMI on there? and the good faith estimate too.

If not, the mortgage company may just write it off as a loss or the mortgage broker you used will pay it.

Keep us updated please...

[No Prob Rob]

My paperwork says:

"In addition to the covenants made in the loan agreement, borrower and lender further covenant and agree as follows:

1. The rights and obligations of borrower and lender shall be determined solely from the written loan agreement, and any prior oral agreements between lender and borrower are superseded by and merged into the loan agreement.

2. The documents constituting the loan agreement may not be varied by any oral agreements or discussions that occur before contemporaneous with, or subsequent to the execution of the loan agreement.

THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES."

Now to me it seems clear they went to great pains to insure I could not change the agreement....and neither can they make changes. Adding PMI after the execution of a contract would be illegal. If a contract is legally binding and someone decides they don't like the terms anymore that's just tough. Otherwise what good is a contract if you change the rules after signing?

I disagree with DallasLoanGuy.

Time will tell and I will keep you posted as events unfold.

[No Prob Rob]

Got my payment book in the mail and the amount I am to pay each month is the same as the contract I signed. They cashed my first check and not a peep. Guess I was right.

[nsumner]

Originally Posted by No Prob Rob

Got my payment book in the mail and the amount I am to pay each month is the same as the contract I signed. They cashed my first check and not a peep. Guess I was right.

Glad to hear that. But you know someone paid for it... you didn't which is good for you, but I bet you someone on the back end paid for it somehow. It was their mistake.

Congrats...

[kilowat]

when my Daughter signed her contract in Tx. they also left out the PMI which was never discussed, it's been four years now, My sister in law a Realtor in Ms. she they have to eat it in Ms.

[jimboburnsy]

Originally Posted by No Prob Rob

I just purchased a new home and in the initial contract when I put up ernest money there was Private Mortgage Insurance included in the estimate of costs. When we went to closing there was no mention of PMI and our monthly payment was lower than anticipated. Now the lender wants us to come back and redo the papaerwork to include the PMI.

Apparently they screwed up and did not include the PMI in the closing. I think it is crappy that I have to go back and pay for this insurance to protect the lender. My question is can they do that? Or should I just do the right thing and go back and give them their PMI?

I wouldn't sign anything of the sort... Their mistake.

[Mark Senior]

I'm not the one with the "gift" so, I don't know what I would do. But reading this and all the angry posts involving the presidential race, this, I believe is what we ALL have come too... again I'm not sure what I would do.