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Review 9/26/2011
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Working with Ryan, the owner,seemed like a good thing. He however has not kept his word in two areas that I needed in order to do business with him.
He said he could adjust our mortgage rate if it was a significant change. He locked us in to a 4.25 rate. After a lengthy process of getting info every few days as to what information was needed,the rates have come down to 3.875. We started in August. Now he will not honor it. The second area, he was going to get us the loan without having to pay off the 2nd, which is a HELOC. He did say we'd have to pay a fee to go through subordination and if by chance it wasn't approved, he would refund the fee. Well NO he says the lender is not allowing the loan with out paying the 2nd and they are not allowing a change in the rate.
How can I get him to keep his word?
He also says we cannot cancel and re-apply with the lender for another 180 days. Is this normal? Ryan also sent in an email, that we could always cancel and go with another lender, not saying a word about charges. He keeps changing his "words" as he goes.
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Business's response - on 9/26/2011
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Irene,
I am sorry that you believe you were lied to or treated unfairly. I have emailed you multiple explanations for these issues but I guess I should post here as well to clear things up. Here are my responses to your issues...
1. Your rate was locked at 4.25% which you requested and approved of. Rates have gone down since locking but we are unable to adjust your rate. When you lock a loan you are committed to the terms agreed to at the time of locking. The lender in question doesn't have a float down option which means you are stuck with the terms you locked in at whether the market goes up or down.
2. Your current bank is the one who denied the subordination agreement. They are not willing to allow you to do a cash out loan without paying them off. Therefor we have 3 options.
1. We can cancel the loan and your bank will refund the subordination fee you paid.
2. We can change the loan to non cashout and just payoff your first mortgage.
3. We can still do a cashout loan but your 2nd lien holder will require us to pay them off in this instance.
Please call me if there is still confusion so we can wrap things up.
Thanks!
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