San Diego Housing Bubble News and Analysis

The advice is both simple and obvious.....find yourself a new lender. How bout Sheldon? (aka HLS on this board)

Why the hell are you buying a house now? Did you the primer? Have you read any of the posts other than those that tell you what you want to hear?

Seriously, go back and read the primer and rethink what you are doing. We are not at a bottom.

Here is some spin.

Be thankful that she lost it and you have rid yourself of a ton of negativity you do not need, especially at a time when you are feeling vulnerable.

The right person will cross your path and soon.

Could be the Universe's way of nudging you into waiting.

Yes.

(Responding to JWM's diatribe) lol

I knew nearly all the replies I would get would be able "why am i buying"... but sometimes not everybody buys or not buys for the same reasons. Some people actually buy a home because they saw something they really wanted or are in need of a home. Some get tired of renting...there are indeed other factors for buying. Even if I waited for further price drops, I may not come across what I really want to be in. I do not want to buy because it was a best deal, especially if it's something I don't completely love. But that is me. As the current prices continue to fall, the realy good deals on foreclosures get more competitive. Even in "4Closure Ranch," a home listed before the weekend, entered escrow on Monday...it had 34 offers on it. So for me, I really want this home to live in and enjoy. :)

So...anybody else got advise?

What are incentive monies ?
Is this money from the builder ? Sorry, I've only bought 4 houses in my life and the newest one I ever bought was 33 years old, so I don;t know much about buying newly built homes.

How much are you putting down ?
Sometimes loan program have limits to the amount of funds that can be paid by the seller for closing costs. In the old days (mid-1990s) this was typically limited to 3% and could only be applied to closing costs.

The builder is giving buyers incentives tied with a purchase of a home. In my case, the builder is giving me $20,000 to use toward closing costs, upgrades, HOA fees, property taxes, interest rate buy down...etc.

I wanted to use the money towards closing costs, 2 years HOAs, and 2 years property taxes. The loan broker wanted to use the incentives toward an interest rate buy down. $3,900 to get .5% lower. I didn't want that, so that's how the realtor got into an argument with the lender.

I know I'll get ass raped by some of you guys on here, but I'm putting 34% down.

I guess my question should be, would I be able to continue the loan directly with citibank, even though my loan broker has cancelled it?

Run from this person. You are the customer. This is also a crappy tactic to get you to stick with her since you are so near to closing.

KPP

Why not take the high ground on this and simply c all the broker back. I highly doubt they canceled the loan. Suggest that you are detailed oriented and are having a hard time understanding this process. Ask if it might be in both of your best interests to have another broker in the office handle the loan if she feels there is a conflict of personality.

With respect to her fees you should have been able to get a Good Faith Estimate at this point. Just ask for it.

Asking for the brokers contact is suggestive that you are trying to cut them out of the loop. Whether you are trying to do this or not doesn't really matter. I am certain taht ther are more than a few unscrupulous Buyer that will try and have the broker do all the leg work and then try an end run to get around the broker fee. Might piss you off too if you thought someone was trying to do this to you.

So the bottom line is e big and mature, and speak to the broker.

"So...anybody else got advise?"

Yeah, run, don't walk, away from this broker.

A legit broker should have been able to give you an estimate pretty quickly and should have provided you with a TIL disclosure document.

The fact that this broker is sandbagging you and making you even MORE nervous during a naturally stressful period in your life is certainly indefensible and bordering on criminal if she's hiding something from you.

And, for her to start yelling at you? I'd have told her to eff off right then and there. There's not reason to put up with that kind of bullcrap considering how much you are paying her to be treated like that.

i agree with you ray.

spoke with my realtor, and she said i should call and try and work things out with the loan broker. even though she wants to stop working with me, i would like to finish with her, since we are just a week away from finishing. i should simply ignore her shady antics...

realtor also said citibank would probably be more than happy to complete the loan without her, and suggested we keep the conditions the same (pay Joice) nonetheless, so it's fair, since she has done work for 3 weeks.

as for the good faith estimate. I have asked numerous times and she either ignores the question, or she claims she "just faxed it." i'm not quite sure how to handle getting paperwork i think i have the rights to see. i believe if i am at the point of signing loan docs, shouldn't i have received some sort of documatation of what i'm actually signing off on?

thanks everybody for writing...
and i'm sorry for buying a house right now :) i know i come off like a dummy for doing so

meandale: what is a TIL disclosure?

http://en.wikipedia.org/wiki/Truth_in_Le...

The Truth in Lending disclosure document (i.e. good faith estimate) is one of the first things you should have gotten from your broker, especially if they've already 'found' you a loan product.

You are 3 weeks into the lending process and a week from closing escrow and your broker hasn't even disclosed the terms of the loan? Has she even locked your rate?

I'd fire her immediately and consider contacting the attorney general..but that's just me. No house is worth getting screwed over for. It could end up costing you alot of money beyond the broker fees.

wow, thank you for that meadandale, very useful information for someone in my boat.

this is only my 2nd time buying a home. the first time was in vegas, and it was such a breeze to get a loan. they ran my credit then BOOM! i had a loan. this was back then, and i'm aware that lending practices have become more stringent.

i think i'm going to take a couple points of advice, getting the documents i deserve and trying to finish this out. if not, i suppose as a last resort, i can finish directly with citibank. i'm sure i can find another home if this doesn't work out, and like other posts have said, maybe it is a blessing in disguise for me to get a better deal.

thanks again everybody

KPP,,
You want some help TONIGHT ??
email me your phone number to sheldon [at] homeloansheldon [dot] com

How on earth can you even WANT to continue to work with someone like this??

She never told you rate or fees ??
She might have just done you a favor.

More info....

http://www.finweb.com/mortgage-loan-educ...

Looks like it is RESPA not TILA that mandated the GFE. My bad...

"RESPA mandates that borrowers receive disclosure documents at various times during the loan process. At the time of application, or within three days afterward, the lender must provide the borrower with the Good Faith Estimate"

Faxes can be problematic and frustrating for both you and her. See if she can't email it to you. That should eliminate the problem. You are in the middle of a month so that works in your favor. There should be more people available to assist with processing.

To me there seems to have been a break down far earlier in the process. If you did a good job selecting your broker and you understood exactly what their role was going to be and what you could anticipate from them then you would not have so many questions to ask at this point.

For other posters who talk about what the broker is going to make. What do you know? you don't have their commission or Profit and Loss Statements. So maybe this is a loss leader at this point.

Not to be rude to you KPP but ther are customers who bring a lot of anxiety to the table and a professional who has been doing there job for a long time and is extremely reputable doesn't always want to be selling. They want to go out find a competitive lender get you the best rate and get things closed.

If this broker did not come referred, simply promised the best rate and you went them because of a rate, or some type of giveback then I would be skeptical.

If the broker were writing the post about you how would it go. There are always 3 sides to the story. Your side, her side and the real side.

RAY, what planet do you come from that you want to justify that customer service...

Give me a break,, There is ABSOLUTELY NO EXCUSE for anyone having to ask for something more than once, and there are certain things that they should receive without even asking.

It amazes me how borrowers put up with this crap,, and are WILLING to take it..

FIRE HER! I can't believe you'd even consider sticking with her. What work has she done? She can't even fax you terms. She hung up on you? She's not a professional and she can't even do the fundamentals of her job. Why on earth would you trust her with your finances and a loan that affects you for years to come. RUN!!

@Raybyrnes

The fact that the broker has not yet provided a GFE for the loan and closing 3 weeks into the lending process and a week from close is indefensible regardless of any of your other points.

Respectable people who are still in the industry should take every opportunity to call people like this out--they are the very essence of what has been wrong with the industry over the last several years.

I had a horrible experience with my mortgage broker when I bought my house in 2003. He misrepresented the loan terms in the GFE and I didn't find out until I was sitting in the escrow office sitting in front of a stack of documents. Knowing what I know now, I'd have walked out and refused to sign. However, at the time I was 'under' educated--I knew what I was signing and didn't like it but didn't know the ramifications for the sale if I balked at closing. I'd be paying a much lower interest rate if I hadn't gotten pinned with a 5 year prepay.

Bottom line, I loved my RE agent and highly recommend him but there is a special place in hell for people like my broker. I'd just hate to see someone else get screwed over.

meadandale: thanks for the additional info. i'll tell her about this and see what she has to say, if she'll listen

ray: i understand. i have also asked her to fax it to another fax number, which there was no receipt. so i asked her to fax it to kinkos, and it still didnt' work. i didn't want to keep pushing it (since i don't have a backbone). u are also correct in saying there are many sides. i think my problem was not demanding the information i should have received by now. i had spoken with 3 different lenders, and i chose joice on the simple fact that i felt like we "clicked" in our conversation and appeared to be on the same page as me. a friend had suggested using all 3 brokers until i got good faith estimates, but i felt that would take too much time to fax 3 copies of everthing out, so i just ended up with joice. the referred loan broker i did get didn't speak english that well, and i had a hard time understand her. i know this is wrong, but i didn't want there to be a misunderstanding down the road.

Raybyrnes,

You're joking...right?

If I understand this right, you are now going to beg this woman to do your loan, and you have no idea what the rate is and what you are being charged.......

I'm speechless....

If everything is smooth and you have your documentation available, it is possible for me to get this done in about a week to 10 days.

Sticking with her is not sensible.

thanks everybody... all the input is appreciated :)

When this has all been resolved (it will!), file complaints with

CA Atty General office
Mortgage Brokers Association
CA Department of Real Estate
Cretin's supervisor

KPP,

How can you say you are closing in a week if you don't even know the details of your loan? That is crazy.

I used a loan broker for my last 3 home purchases and it couldn't have been handled more professionally. All of my questions were answered promptly and I had everything in writing WELL in advance of my closing. "Joice" is totally out of line and this should be raising zillions of red flags for you. You deserve to know what is going on. You need details in writing. If you apologize to her, pardon me for saying so, but in my opinion you are an idiot. Who knows what sort of bombshell she will drop at the closing table - when she knows that you are pressured to sign. Run now!!!

KPP I really hope you take HLS up on his offer.

Also, you said your realtor advised you to go ahead with the loan.

Remember, your realtor benefits from the closing.

No offense to the marvelous beings who work as realtors on this site.

This is a WTF thread.

op, you should NOT be buying (lol, taking a loan out) on a house.

First the broker was lazy, second YOU should have done more homework, and you would have known she was crap from day 1.

Please either stop what you are doing and regroup, or just drop the whole thing.

I agree with Enorah about perhaps the universe is preventing you from making a long term mistake; the universe gives us many signals, it's our human flaw that doesn't allow us to listen and take note...however, if you are still determined to go forward, I would highly recommend you speak with HLS - he is a wonderful resource and great body of knowledge, and just a super cool guy to talk to and work with. Your loan officer will make a lot of money on your deal, she shouldn't be treating you in that way, it's so 2005! If you feel uncomfortable using someone on this blog (HLS), I can also suggest a loan officer who can be trusted. I have worked with him since 1999 and have been very pleased with his work and feel that he is professional and honest.

I wish you the best of luck as you go forward.

KPP,
If she hasn't provided you anything after 3 weeks "hardwork", how could you turst her to close your loan in another week?
You should know that she was trying to take advantage of you when she suggested you to buy down the points. The more you buy down, the more she probably get from the lender.

Since you put over 20% down-payment, your loan can be approved and processed as fast as in one day or two.

I myself very appreciate HLS' comments. If I were you, I would work with HLS. Your satisfaction is 100% guaranteed here - you know where to complain if not:)

Congratulation, and enjoy your new house soon!

Seattle & FSBO,

Many thanks for your comments. I've talked to a number of people from this site, and I don't know of any complaints or misunderstandings from anybody. I'm an open book.

If I don't know something, I'll tell you that I don't know, but I can explain a whole lotta things from different perspectives.
I do this to be helpful and I'm not out to fool anybody.

I'll tell you what I can do for you without any BS, and if you qualify, I'll get it done fast, and I'm very fair.

When you pay points to buy down a loan, there is no "larger commission" in fact there is no commission at all. It isn't possible, and it's illegal.

When you get the PAR rate, the lender doesn't pay a penny in any form of commission, rebate, kickback, whatever you want to call it. It doesn't exist...

If you are overcharged in rate, THEN the lender pays a commission. That's how "no cost/no fee" loans work, you will pay a higher rate and have higher payments for the life of the loan. After 3 or 4 years, it starts to cost a small fortune.

By paying DISCOUNT POINTS, it ALL goes directly to the lender and gets you a lower rate. Discount points are NOT shared. Transactions are highly regulated through escrow and if the lender isn't aware of how every dollar is accounted for there is a problem.

If you go directly to a bank or "direct lender" they do not and will not disclose that you are being overcharged, because they don't have to. (Thank the bankers lobby)

When a bank tells you that they don't charge fees, it is just built into their rates, and it sounds good.

I can do no cost/no fee loans too, but I explain the difference. The banks can't. Many employees only know their bank limited programs and are told what to say; they work for the bank and get commissions.

It's really not rocket science. When people charge triple what I charge they are just screwing borrowers, and it does happen.

I can get a loan "approved" in a matter of minutes, but they don't get processed in one day. A full package requires an appraisal and a title report, takes a few days.

The fastest that I have ever done was a submission on Tuesday and docs to sign by Friday afternoon. It's rare but it can happen when everything is lined up.

There still seems to be a ton of misinformation about how loans are priced and fees and commissions.

Millions of people have been taken advantage of by dishonest mortgage folks, but there are a few decent ones around.

Still amazes me how some get loans, like this thread proves.