Funny? HUD story (long) - Posted by Pam WA
Posted by Pam WA on October 21, 2000 at 11:17:15:
OK, on August 22 I put in a bid on a HUD home for personal use and was the winning bidder. That’s the easy part.
During the time I was checking on financing, I found out that the assessors office had one address (same as HUD) but the actual address was different. (correct address was 34*** and incorrect 35***).
I told my RE Agent and the Mortgage company rep about the address correction. RE agent checked with HUD rep in office and tells me “he says HUD won’t change the address under any circomstances but as long as mortgage is issued under correct address, you are fine”.
Here’s where the stuff gets funny.
I went with a different mortgage company than the pre-qual letter. The new mortgage company asked the title insurance co. for a preliminary report, which the title company promptly promtly sent to the pre-qual company. That company did not bother telling them that it wasn’t their paperwork, so there was a two week delay until someone in the new mortgage company realized that nothing was happening with the loan.
Loan was supposed to close on 9/25 but couldn’t due to paperwork delay.
I’m financing with an 80/15/5. Property overappraised, so no problem. Closing was set again for about 10/5. I have reminded mortgage co. and RE agent a couple times about address change.
Mortgage Co. does not get paperwork on 2nd to title co. on time to close. May also have had a failure by one of the “overnight” mail services to deliver documents.
Closing takes place on 10/10. Does everyone but me know that HUD requires a $250 cushion (i.e., overpayment on the buyers part) at closing, in case someone made a mistake on figures? Closing is $700 more than estimate, I squeak by. HOWEVER, ALL the closing papers have the wrong address on them. I cross it out on all papers, correct and initial. They also had my current address wrong.
Everyone is confused and no-one knows what to do with my terribly inappropriate action (gee, I just want the correct legal address on the papers). They sit on their hands the rest of Tuesday, Wednesday, Thursday and Friday. On Monday I get disgusted, call the County Planning Dept. They assign addresses. I ask for something in writing. I fax info to them, thay reply on letterhead paper, signed, with correct address (34***), citing statutory authority, some other info, and a note that this property has never had another address. This is within two hours. I copy this and take copy to mortgage co, title co, and RE agent. It finally breaks the logjam and everyone starts correcting their papers.
Supposed to fund and record 10/19 but mortgage co. doesn’t forward corrected papers for 2nd, so delayed. Also the paperwork which was faxed to me to document correction of address has the right street address and the wrong city! Just corrected city on that, initialed, signed, and returned.
Was supposed to fund 10/20, not sure if/when recorded.
Will find out Monday if/when it’s actually mine.
I suspect lots of people in this are not happy with me. When the title insurance is issued under the wrong address, the appraisal (appraiser had the correct address but the title company made him change it) has the wrong address, the mortgage company has the wrong address, and the government HUD had the wrong address, after being told that it is the wrong address, doesn’t it imply that someone is not carrying out their legal duties???
I would think that at least one person in the chain would have said, “I’m tired of this buyer thinking she knows more than the great and powerful _______ (fill in the blank) and I will go to the top authority and prove her wrong in writing!” That would have solved the problem!
Oh, when I spoke with the Planning Dept in Early Sept, they were supposed to correct the address at the assessors offfice. This was not done at that time. Also, HUD closings go through Santa Ana, CA, for Wa state, so the local office was only doing a courtesy closing (that will be $150, please). The mortgage co. is one of the large merged ones and ok’s stuff out of Portland, OR. This was the first HUD house sold by my RE agent (hey, Dave, wanna sell more HUD houses? reply: “Has hell frozen over yet?”)
Luckily I had no deadline to be out of my current residence.
I’m to the point I can only laugh. This is beyond ridiculous. It’s as if someone challenged the group to make as many errors as possible. Hope the rest of you found this amusing.