Posted by TomC_MI on April 01, 2004 at 21:58:22:
Hello Jennifer,
I have been in your situation and seen others there as well when it comes to a lender jumping the gun and saying they can do the deal, just to change everything during the process and drag it out. My opinion, find a better lender and if you’re not dealing with a local company find one. Ask some of the people in your area and I’m sure you’ll find a good lender 
Good Luck!
Need advice re: Greenfield Mortgage - Posted by Jennifer
Posted by Jennifer on April 01, 2004 at 11:01:25:
Hi all…
I’m in the process of trying to refi my primary residence. I have a bankruptcy, discharged 3 years ago, and a year ago I bought this house with owner financing for $68,500, with $7500 down, at 9% interest for 20 years (payments $539.84). I went through Lendingtree.com and found that Greenfield Mortgage gave me the best quote, so I started working with them. They ran my credit and said it was fine (score 670). My original quote was for a 30 year fixed at 5.325%. I provided them with all the paperwork they asked for and it looked like things were going to go smoothly. A couple of weeks later, they told me that they couldn’t do a fannie mae for %95 (so I wouldn’t have to bring anything to closing), they best they could do was a 6.3% 3/1 ARM. I said, ok, since it was still better than the financing I had. After I paid $300 for the appraisal, which they didn’t seem to have a problem with, they did titlework on the wrong house (they did it on a house that I own that my father left to me), then at the last minute they decided they needed cancelled checks from my house payment from the past year (even though my seller had already verified that I paid on time). I had switched banks a few months ago, so I had to go back to my old bank and pay them $60 for them to give me the old checks, which it took them almost 2 weeks to get to me. I finally got that in, and the title work was done, so I’m thinking, now we can finally close. Yesterday the loan officer called me and said that the house appraised for only 66K, and the underwriter was saying that they wouldn’t do a 95% period because I’m in a rural area and there weren’t any good comps nearby. So she tells me they can do a 90% ARM 3/1 at the original 6.3%, and I’ll have to bring $3300 to close. I say ok.
The saga continues…
Just now she called me and said that the underwriter is not accepting the appraisal, and now the ONLY way they can do anything is if my seller agrees to write a new contract for $62000 and treat it like a new purchase. (I owe $59800 on the house). They will do a 30 year fixed at 6.25%. He will pay some closing costs and I will need to bring $1200 to closing. I will have to pay PMI and my PITI with PMI will be $573. I am already paying $540 P&I, and when I consider my taxes and insurance, in the long run it will only save me $68 a month. Is it still worth it to do it? This has been going on for 6 weeks and I’ve just about had it with Greenfield Mortgage. I feel like I’m getting screwed. I figure my options are to 1. go ahead with it 2. Say screw them and try to find another mortgage company (if I do can I use the same appraisal?), or 3. Wait a year and try again, hoping the house appraises for more. Advice please?
Re: Need advice re: Greenfield Mortgage - Posted by rm
Posted by rm on April 09, 2004 at 10:19:17:
Your score is good, so I would advise you to find a LOCAL lender, which will at least offer a little more accountability, should things go wrong.
I saw a statistic that said that 80% of borrowers who apply online do not end up with the product they applied for.
You could string this first one along while you work with a new lender, but you run the risk of them pulling your credit MULTIPLE times, which could complicate things for you.
Been there done that - Posted by Gavin Wilkinson
Posted by Gavin Wilkinson on April 02, 2004 at 11:09:16:
I have been screwed by lenders like this before. My experiences tell me…
It will continue. Expect more excuses and fees right up to the close, where you get the grand ripoff. The figures you are presented at the close will myseriously be even worse. Then after you close expect more problems.
Lenders like this will never remove the PMI when your house is worth more, or you have paid down the mortgage, which means in 5 years or less you will want to refinance anyway to get rid of the PMI.
It seems to me restating the sale as a sale for 62k is fraudulent. Stay away from changing the deal for the bank. If something happens, and you end up in court in front of the judge, you don’t want to be explaining that you lied about the terms of the deal to get the financing. The judge will not buy that “you were told to do this”.
Instead, pay an additional $100 per month on your mortgage. So in a year or two, you will have more equity, and the next refinancing will not be an issue.