Mortgage question....lawyers?

Discussion in 'After Hours Lounge (Off Topic)' started by JoelC, Jul 29, 2003.

  1. JoelC

    JoelC Stunt Coordinator

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    My wife and I were approved for a construction mortgage in October 2002. When we went to convert the mortgage over to a conventional mortgage in April 2003, we were denied because my wife became self employed and they will not use any income unless she has two years of tax returns. Our debt to income ratio is very bad without her income. She runs a daycare and makes gross $1,000/wk, which is more than she made before. So, I went to my local credit union and was approved on my income alone. Now, the questions is GMAC wants to charge me a 2% fee for not turning the construction loan into a permanent mortgage!! Now remember they said that I could not and THEY would not do it. It says in one of the 80 pages that I signed at the construction closing that there would be a 2% penalty if for any reason it was not converted to a conventional mortgage, but this is a special circumstance, I think. To make matters worse, in speaking with the Vice President in the construction lending department, he says, “Well if your wife had not started her own business you would not be in this predicament”. What is that???
     
  2. Patrick Sun

    Patrick Sun Moderator
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    For them, it's about managing risk when approving loans.
     
  3. Jeff Ulmer

    Jeff Ulmer Producer

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    Welcome to the world of financing, but I think you are screwed. Lending institutions are notorious for finding ways to make you pay more, and this is one of them.

    I'm in a similar situation with a mortgage penalty. My mortgage allows me to pay down 20% per year, so I figured when I settled my sale, I'd pay it down, then discharge the mortgage, and pay the penalty on the remaining 80%. Great plan, until they tell you it takes 3 days to credit your account. However, in my case, all is not lost. I will be short term borrowing for the 20%, which even at 19% interest will save me more than $1000. Where is that middle finger smiley?
     
  4. Todd Hochard

    Todd Hochard Cinematographer

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    Interesting that your credit union has no issue financing you.
    I'd make it perfectly clear to the VP at GMAC that I was about to embark on a campaign to explain these shady tactics to everyone who will listen.

    AT&T once denied me a refund on some bogus long-distance charges (all the way to the office of the President), so I cancelled immediately, and made it my mission to get everyone I could to switch. I took down the names of those 36 people, and sent them a "remember me?" letter.[​IMG]
     
  5. Chris Lockwood

    Chris Lockwood Producer

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    > Well if your wife had not started her own business you would not be in this predicament

    Yeah, where does she get off doing that without GMAC's approval? [​IMG]
     
  6. Patrick Sun

    Patrick Sun Moderator
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    Financing is always done with a snapshot of current employment conditions and a demonstrated history of employment. So if the applicant's current employment condition changes, is it fair to the financing company to just disregard their policies on a whim?
     
  7. Chris Lockwood

    Chris Lockwood Producer

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    I guess she should just keep her old job til the house is paid off then. [​IMG]
     
  8. Jeff Ulmer

    Jeff Ulmer Producer

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  9. JoelC

    JoelC Stunt Coordinator

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    I guess it is just weird that they are trying to charge me 2% ($3500) because they will not finance me now. I am not the one wanting to move the loan, they are forcing me. I have had GMAC on our last house (5 years) and this contruction loan and never missed a payment on this loan or any loan I have ever had.......
     
  10. Jeff Ulmer

    Jeff Ulmer Producer

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