Deleted
Posts: 0
Oct 5, 2024 13:18:55 GMT
|
Post by Deleted on Jul 14, 2014 17:19:30 GMT
To me it depends on what the mortgage broker was told at the time of the refinance. If he was told you were keeping the home, then that is different than if he knew there was a possibility that you would sell soon.
Many mortgages have prepayment penalties if you sell within x days of closing. Especially if you paid no closing costs. It does not surprise me that they would have a 'clawback' provision that if the mortgage wasn't aroudn for x days/months/years that you have to payback something. Sometimes it is the closing costs that they gave you for free. So you might also experience something you have agreed to payback. Definitely read thoroughly through your paperwork that you got at the re-fi closing.
Now if he knew there was a possibility that you would sell sooner rather than later, he should have told you about the issue of a short re-fi and any limits or fees. But it sounds like your DH told him you were going to keep the home.
|
|
gsquaredmom
Pearl Clutcher
Posts: 4,091
Jun 26, 2014 17:43:22 GMT
|
Post by gsquaredmom on Jul 14, 2014 17:36:53 GMT
This must happen a lot. I would list it. You sound like a good person with a strong moral center. But banks have no moral center. They are guilting you. The only one who loses is you. You should not even be aware of that provision. Not your job. Do what is best for your family. As long as you are legal do what you need to do.
|
|
scrappammie
Junior Member
Posts: 78
Jun 25, 2014 21:31:40 GMT
|
Post by scrappammie on Jul 14, 2014 18:09:36 GMT
This must happen a lot. I would list it. You sound like a good person with a strong moral center. But banks have no moral center. They are guilting you. The only one who loses is you. You should not even be aware of that provision. Not your job. Do what is best for your family. As long as you are legal do what you need to do. The bolding is mine. And I don't work for a bank. I'm really not picking on you, gsquaredmom - just very respectfully disagree.You should be aware of every thing in a legal document you sign. That's why it's important to read before signing. And, it's important that you give true and accurate information for which something like this (a mortgage loan) is predicated upon. In this case (and my previous questions are still unanswered) it sounds as though the OP was given an owner occupied refi for a home in which they apparently did not intend to remain. Whether the realtor or lender knew and were involved, we don't know. To state that a mortgagee has no responsibility for a loan they agree to assume (and legally owe) is ludicrous. The OP needs to look at her loan documents, and see what type of loan, payment penalty and other provisions she agreed to at closing.
|
|
|
Post by magentapea on Jul 14, 2014 18:27:30 GMT
If the OP was given an owner occupied refi and it is in their paperwork that they must reside in the home for x amount of days (or a similar restriction) then I wonder if the loan officer or the bank can come back to the OP for breach of contract or damages (loss of commission). I would thoroughly read the loan paperwork and possibly consult with an attorney on this one.
|
|
|
Post by mdoc on Jul 14, 2014 18:36:06 GMT
The mortgage broker should never even have mentioned that to you! There is no way I would make extra mortgage payments so he could keep his commission. I would list the house and see where the chips fall. Maybe it won't sell as quickly as you think. But in any event, unless YOU agreed to remain in the house for 6 months, you refinanced in good faith, it's not your problem and you shouldn't let the mortgage broker make it your problem. Read your paperwork if you're not sure what you agreed.
|
|
Deleted
Posts: 0
Oct 5, 2024 13:18:55 GMT
|
Post by Deleted on Jul 14, 2014 19:26:06 GMT
This must happen a lot. I would list it. You sound like a good person with a strong moral center. But banks have no moral center. They are guilting you. The only one who loses is you. You should not even be aware of that provision. Not your job. Do what is best for your family. As long as you are legal do what you need to do. You should be aware of every thing in a legal document you sign. That's why it's important to read before signing. And, it's important that you give true and accurate information for which something like this (a mortgage loan) is predicated upon. Yes, the borrower should absolutely be aware of what is in the loan documents. However, the issue of a mortgage broker's commission from the lender IS NOT part of those documents. That is between the broker and the lender. So I agree that the OP should not even be aware of this issue, because it is not her problem. It is the broker's problem and if s/he is uncomfortable with the possibility of this happening, s/he should be in a different business. When I was a commercial lender, you bet it sucked on those occasions when I had a loan refi with another lender before it was seasoned on our books because that meant I lost that revenue in my incentive calculations. But NEVER in a million years would I have mentioned that to my customer when trying to convince them to stay with the bank. Did I try other means to get them to stay? Absolutely - by showing them the benefits to *them* and the risks to *them*. But as far as it would affect my personal finances? No way in hell. That is just gross IMO. Guilt tripping your customers = poor business practice
|
|
scrappammie
Junior Member
Posts: 78
Jun 25, 2014 21:31:40 GMT
|
Post by scrappammie on Jul 14, 2014 20:43:24 GMT
I agree, Busypea.
I understood that it was the direct lender and not a broker (OOC) that had expressed concern to the realtor (who shared the same office) and that is why I was positing in an earlier post that this was actually a prepayment penalty and not just worry over commission. But, until the OP comes back with more info, I guess I shouldn't have "assumed".
ETA: I guess I'm confused by the realtor being the one to bring it up - I was thinking a title rep for the listing agent caught a prepayment penalty and gave him a heads up, but maybe the lender/broker and realtor are too cozy if they're sharing commission/payroll stories.
|
|
Deleted
Posts: 0
Oct 5, 2024 13:18:55 GMT
|
Post by Deleted on Jul 14, 2014 20:53:33 GMT
I agree, Busypea. I understood that it was the direct lender and not a broker (OOC) that had expressed concern to the realtor (who shared the same office) and that is why I was positing in an earlier post that this was actually a prepayment penalty and not just worry over commission. But, until the OP comes back with more info, I guess I shouldn't have "assumed". I guess I'm assuming as well. Generally speaking, around here it's uncommon for a direct lender to be co-located with a realtor but brokers often are, so I assumed it was a broker. I don't know that for sure, though! But even if it is a direct lender, I think it's totally inappropriate for the realtor to be coming to the customer with concern about the lender's commission. If there's a prepayment issue, then the lender should be contacting the OP directly and saying, "I want to be sure you're aware you will be on the hook for XYZ penalty if you sell in less than 6 months." Never should the commission issue be mentioned IMO.
|
|
|
Post by Lexica on Jul 14, 2014 22:25:01 GMT
Ok, now I understand. I've had two cups of coffee and breakfast and my mind is as good as it's going to get today. I see we have peas with much more knowledgeable on here than I have, so that's awesome. Until you've read what was in the paperwork you signed, you don't know what is going to happen. When you refinanced, it sounds like you were going to keep the home, but as a rental if the short sale came through for you.
You need to go over the paperwork and see what conditions are on the refi to see if you are obligated to pay a penalty if you sell right afterwards. If that condition is in there, and you were not made aware of that during the refi process, then your friend the mortgage guy isn't very good in my opinion. He should have pointed that out to you during the transaction time so that you knew what you were getting into. At least in my opinion he should have. People have circumstances arise that may result in them doing a refi and then suddenly needing to sell shortly thereafter. Any good mortgage broker should have talked to you about what that would mean for you and your refi loan. And in your case, that would be especially important since he knew you had just been working with the realtor so a potential sale/move could occur.
I don't know whether or not they are under obligation to discuss all the clauses with you or not, but I would not be happy with someone who did not let me know of a potentially expensive or restricting clause in my loan. I also don't think it was right for the realtor to tell you that the mortgage guy might take a hit on his commission. If that is the case, I think he (mortgage guy) should have talked to you about closing out your loan right after the refi. That was the time for all this to be discussed, not now that the loan has funded and you've bought the other home. Something just isn't sounding professional here. Once you review the paperwork, it will help you to see what is really happening here.
|
|
Rhondito
Pearl Clutcher
MississipPea
Posts: 4,797
Jun 25, 2014 19:33:19 GMT
|
Post by Rhondito on Jul 14, 2014 22:40:47 GMT
You would lose money so HE wouldn't lose money? No. Not your problem.
|
|