Friday, January 28, 2011

The Refi - Part Two

So we left off with us needing to bring somewhere between $500 and $2600 dollars to the closing table.  As I said before, that is a huge difference.

MG said he was still working on it and would let us know.

By last Friday we were still in limbo about everything.  Underwriting was looking at it, but it was looking like we would be closer to $2600.  The breakdown was about $1700 for our taxes, and $900 of "shortage."   Additionally, our first payment would be due on March 1.  The $1700 would come back to us from our escrow account, so we were basically "fronting" the money (more on this later).  Then the $900 would come from the money we would have paid for our February instead of skipping a month payment, it was more like half a month.

On Monday of this week, MG's boss called us, and per him, we needed to submit a recent copy of our 401k statement as proof of assets.  Ok.  They were working on the last few items, and we should be ok.

They had told me that Jan 26 was the last day we could close, and we were at January 24.  And we knew there was snow coming.   I told MG all of this over and over and that I was getting worried that they didn't have everything, and that they were still asking us for documentation.  We had already had a bad loan and I really felt that when things are rushed in the end, stuff gets missed.

Monday afternoon I had to spend an hour on the phone with the info checking person who had to call certain creditors to confirm balance, no late payments, etc.  And I had to sit on the phone while she did this because those creditors wouldn't release info directly to them.  Huge waste of time.  Plus they faxed over a verification of employment and wanted to know my past wages for the past 3 years.  Of  course my boss doesn't keep the records on site, so he was only able to give them 2010, and approximations for the rest.   I guess they were ok with it because they never asked for more.

By Monday night, we were told that they were only missing one piece of paper....the new home insurance document with the new lenders name.  So this one piece of paper was holding it all up.  But they would call first thing Tuesday morning and hound them.

Tuesday morning, I get a call from MG that the home insurance people wanted to talk to me.  Ok fine....I called them and after being transferred around, they tell me that the release that they had was only to RELEASE information and not to change it, so I had to tell them it was ok to change the info.

Then later that morning....MG calls again and says they need bank account statements.  What????  Apparently, underwriting wanted statements from the exact accounts that were funding the money we were bringing to the table.  When  underwriting asked for proof of asset, they neglected to mention it was for the accounts that funded the closing, and his boss failed to clarify this....which is why they asked for the 401k instead of what they really needed.

Now I am mad.  We are at 36 hrs before the deadline and they want us to produce more information.  Why the heck didn't someone think of this before, and considering we were not the first people in the world to need to bring money to the closing table, why didn't MG, or his boss for that matter, know any of this.  Oh and to make it worse, they wanted proof that we had that money for at least 60 days.

So I went off.  I was like, what if I chose to pawn something to get to the money??  What if we were borrowing the money from Mom?  None of that should be their concern; those would be our personal business.  All they should care about is that we have the money.  And if they were really concerned about it, then they should require a Bank check at closing for the amount, vs the wire transfer that they wanted to do.

I really am a nice person....but don't piss me off.  MG got an earful and a half.  Just wait until you hear what happened next.


  1. So....what happened?! Waiting with bated breath!

  2. Ah...the secret of a great story teller is always leave them wanting more! I will write more later....gotta get some real work done first. :0)

  3. It sounds like you had a horrible mortgage broker...definitely a nightmare story...I can't wait for Part III!

  4. Actually, I do think that MG is very good. The overall loan was good, and even when the appraisal was low, he made it work. He kept in contact with us daily, and was a super nice and personable guy. I think the downfall was not using past experience to be proactive at the end.

    Oh wait for part 3!!!! This will slay you!

  5. Oh my, is this the first time these people have done a mortgage refi? This is ridiculous!! They need to pull it together and get their heads out of their butts!! That is terrible that you have had to go through all of this. I can hardly wait to hear the rest!!