Ok here it goes....I am in the process of purchasing my first home.  I go to settlement on Tuesday.  I am dealing with  well known Realtors and their in house financing. Yesterday, the realtor called me and told me that the house wasn't appraised for what I was going to pay for it, so I told her unless the seller comes down, then I don't want it.  Well anyways, the seller decided to come down $5000 and she told me that my settlement costs would be cheaper now. I was thrilled about that! So a couple minutes later she calls back and tells me that the BANKER said that I had to bring an extra 1000 to closing....I didn't understand why, so I called the BANKER and I asked politely why do I have to bring that extra money...Here is his response:

I AM NOT YOUR REALTOR...I AM NOT DOING SO AND SO'S JOB!!!!! CALL YOUR REALTOR AND ASK HER!!!!!!!!!!!!!!!!!!!!


I couldn't believe my ears....Granted I am a first time home buyer and I don't know all the answers to all the questions, but he should not have talked to me that way...He should have been more than happy to walk me through the steps to understanding why the settlement money would be more.  

I just want to know what should I do!!!!!!!!!!!!!! I am going to closing in a couple of days so I don't have time to switch and my loan is kind of complicated.  I just want to know who I should talk to after this is all said and done.  I want his ass fired.

I am not involved in real estate or banking, but have been through the process from your side many times.

If I were you I would call your realtor, let her know how you have been treated and ask her to find out why the extra $1,000 is needed at closing. The realtor is getting paid good money, let her handle dealing with the jerk at the bank.

The $1,000 could be for a variety of things, for instance sometimes the amount due at settlement varies depending on when during the month you settle. If you do not believe the $1000 is a charge you should be paying you can get your agent to try to negotiate it with the sellers. But if you really want the house and believe you got a fair deal I would not let it stop me from proceeding either way. The way houses are appreciating in N. VA you will be far ahead very quickly.

As for the banker. Don't let him get the best of you. Have your realtor get the inforamtion you need now and feel free to ask any questions you want at settlement. After this is over and you are living happily in your new home, write a letter detailing exactly how you were treated. I would send it to the bankers boss, and their boss...If it is a national company, like Bank of America, I would send copies to headquarters. Who knows if it will do any good, but it will make you feel better and maybe this guy will think about how customers should be treated a little more clearly in the future.

Congratulations! Buying a house is stressful, but it is a very smart move.

I AM IN THE MORTGAGE BANKING INDUSTRY AND THERE IS KNOW REASON TO EVER TALK TO A CLIENT THAT WAY . HE IS MAKING MONEY OFF YOUR LOAN . CALL YOUR AGENT AND TELL HIM THE DEAL IS OFF UNLESS HE AND THE MORTGAGE BANKER CAN'T WORK OUT THE $1,000.00 OFF THERE COMMISIONS . LET THEM MAKE A LITTLE LESS MONEY THEY WON'T LET THE DEAL DIE

CJ, Congratulations on your first home purchase! Having said that Im sure it is a very complex and frustrating time for you having to deal with so many new issues all at once.  The bank employee had no business treating you that way and I agree with the first poster as to what you should do about it. The key here is to do it after the closing!!
Right now your priority should be to gt the deal closed. This, however includes getting answrs to all your questions. Its your money they are so casually tossing about. If you dont think your realitor has the answers to your questions on the extra $1,000, speak to the Broker. This person, who is basicly in charge and oversees agents, will know where to get the answers. It may be good or bad that the financing is through an inhouse arangement.It should be helpful in your case though especially when the Broker is involved. It dosent sound like you have any problems that cant be resolved before closing CJ.
Again, good luck and best wishes to you on the purchase of your new home.
Oh in case your curious, I am not in the real estate industry (Im in financial services) though Ive been through the process enough times to know a few things I hope are helpful to you. If you like, I could e-mail you if you have a specific item or two youre in a quandry over. Just let me know.

Going to settlement is a roller coaster ride.   I was in the same situation many years ago.   Most likely, you first received and "Estimate" of your closing costs and settlement fees (taxes, insurance, recordation) based on estimated values.   Now that you are going to settlement, these cost become date certain and can fluctuate as mentioned by previous threat.   I never understand why the Realtor and Banker never explain this, especially to first time homeowners.   Believe it or not, the Banker is correct, and is just crunching the numbers.  By now you should also have a settlement agent or that might be the banker.   Both receive a fee (origination or settlement), but usually could care less about the you.     You should contact your realtor to discuss and explain the changes from the estimates due at closing or what you were originally given and the actual due at closing or settlement charges.  I would not be surprised that the increased amount is correct, but the problem is that you were prepared for one amount and now only have a few days to come up with the difference.   Where you do have some room, is put some pressure on your realtor to lower their commission to cover the difference.   The realtor has a lot to lose, usually 5-6% of the selling price of the home.   This is paid by the either the seller or buyer or both and this could be 10k to 12k on an Avg 200k mortgage.   I would start out by saying that you have collected all the money you can (friends, family) and that you probable will not be able to buy the home.   This will position you so that it appears that you have no alternatives and are completely tapped out.   While you are "crying" to your realtor, politely ask if there is anything they can do.   If you sense that they are avoiding discussing their commission, then directly ask "can you reduce your commission” Do not become hostile or snotty, but rather be persistent and stay the course and allow them to be the hero.   This is a negotiation.   They can do this and do it all the time in tight situations.  Remember, they have worked on this for 2-3 months and are probable willing to get something as opposed to nothing!!  As a back up, be prepared to work over your friends and family again and you will be very happy you did when you do your next years tax return.   Best of luck!

Thank you for all your support and emails. I guess what I am really wondering....is there a way that I can make it so he does not get any commission?  If I talk to his boss.....do you think they would work with me on that.  I dont want to give him any money.  He doesnt deserve it.  This is not the only time he has yelled at me on the phone.  He has done it numerous times.  I hate even talking to him because he makes me feel so bad.  Anyone that knows me, knows that I am really sensitive and I get my feelings hurt easily, but I am also very stubborn sometimes and I just can't let things go, like this jerk. I refuse to let him earn money on my loan.  I must tell you that the house I am purchasing is under 150 grand and I think that he thinks I am not worth his time or effort.  I know that is why he is treating me that way!!!!!!!!!!!!!!!!

CJ

CJ, I appreciate your frustration and anger but dont think you can pull that off. First, are you sure the person is on commission or is there a chance he/she is on straght salary?(If his/her title is mortgage broker or something similar, the renumeration is definitly commission based.)Otherwise they may be on a salary. I suspect the latter do to the rude abrasive way youve been treated and the fact apparently youve been talkng with this person for a while.
At any rate you should make sure his/her boss knows how clients are being treated. Companies are very aware of their image and dont want the bad publicity that will result when their employees mistreat members of the public.
Making sure management knows is your best way of handling this situation and with all the facts...and, if your going to go after someone, after the deal is done. Im sure this is frustrating for you but sometimes youve just got to keep your focus on what you really want. In this case its a mortgage and that jerk may be in a position to kill the deal if you dont jump through all the hoops. It is hard I know but you have lots of time afterward to tell your story. Hope this helps Sweetie.

I was at a conference recently and Donald Trump was a guest speaker.   He talked of a person that professionally hurt him when his business was in trouble years ago.  He said, don’t get mad, GET REVENGE and drove him out of business when times got better.  Do not jeopardize you loan!   If it is a fly by night outfit, this person is probable a reflection of the organization and you will get limited satisfaction, so just walk away.    If you are dealing with a reputable mortgage lending company or bank, by all means work up the chain of command until you get your pound of flesh.   I would suggest you go two or three levels higher than this punk.   This person is probable cozy with his boss, so go to the bosses, bosses boss.   A senior vp really hates this stuff.   Be very business like and stay in control and tell him it is important for he/she to know that they have an employee rude, insulting and berating paying CUSTOMERS and this is unacceptable and ask that someone else manage your loan.   If they have any smarts they will thank you.   Ask him to follow up.  Do not make threats, but you can also contact the state  & county business license board, the better business bureau and file a complaint regarding possible discrimination of some nature.   Good hot button word.   This will require more time and research.   Talk with them first and then send a letter and cc the vp.

I work for a mortgage company and unfortunately this close to settlement you are "screwed".  Do you know if the BANKER is brokering your loan?  If so, in addition to any points they may be charging, they are most likely receiving a YSP (yield spread premium) from the lender.  These are "points" that the lender pays to the BANKER for placing the loan with them at a specified rate.  I would suggest that you ask them to disclose what they are making in YSP - by law they have to.  Unfortunately, you can't do a thing to change what they may be making from the lender.  However, if he/she is charging you points on the loan in addition to the YSP you should request to have them reduced.  The sad reality is that when you deal with larger realtor's and their in-house lending you are dealing with "partners" and as long as they get the deal done and everyone makes their money they will all stick together.  Let me know when you are in the market to refi.  I will certainly be happy to help in any way I can.

CJ, I would have been "in here" sooner, if I wasn't dealing with the damage control of "being up to my ass in alligators" in my posting thread down the page.  The difference between my situation and yours is that I was stupid enough to stock the pond with alligators in the FIRST place, and then FALL IN....:~)  The situation you are in is obviously NOT of your creation.  More often than not, life just throws these messes at EACH of us.

  Most of us have been where you are right now.  I know I really made some stupid bloopers in my settlements (not to imply that YOU would).  Let's just say that this whole mess is their "game", and you are playing in their "arena".  They KNOW IT and probably are taking a bit of advantage of it and you.  They have probably done it many times before, and you won't be the last time either.  Apparently the attitude of at least some of these people is the same as Donald Trump's: "It's not personal; it's just BUSINESS".  IMHO, they are not conducting "business" in the most logical or intelligent matter.  When one treats customers as that one guy has treated you (regardless of his motivation), it will come back to haunt him (SOONER than later).  

  I agree that you should tell someone about your experiences with him.  Obviously, pursuing it further with him will be a waste of time.  I must defer to the good advice which others have given you, with respect to your timing and methodology.  However, the bottom line is that all ANY of us can do is give it our best guess wrt what they will do and what the outcome will be.  None of us are fortune tellers, after all.  Consider the source of your advice, and how informed it is in these industries and specific matters.  

  With respect to your decision making process, as someone else said, you will have to calm down, focus, and determine what is more important to you (your principles, or getting the house).  I hate to say it, but sometimes we have to compromise our principles just a little bit, to obtain the major outcome desired.  Remember that you are not just deciding for yourself, but also for your daughters' well being.  Good shelter is VERY important.  Finally you will just have to go with your gut instincts and feelings to make your own decision.  Once you do, you will have to live with it, regardless of the outcome.  But, NEVER try to second guess yourself.  Once a decision is made, let it go, and calmly move on with whatever "fallout" may occur.  That's the way life works.

  Don't interrupt anything important, but when you get a chance and the "dust settles", I would appreciate a reply to my pm.  Okay, sweetie?

Hi, if you need any assistance I would love to help you out.  Drop me your email address so I can be of some help.

The best advise was already given. Both the mortgage broker and Realtor are making money off you. Tell them you will be into closing as soon as they decide which one or both are going to pay the extra $1000. Been there done that many times. The Mortgage Banker should be thrown out on their ear. After close and payment has been made, go to the CEO of that office and explain the manner in which you were treated.

I called the regional manger of the Realty Company I am dealing with and told them about his rude behavior.  I also confronted the BANKER and told him that he really hurt my feelings and has literally had me in shambles since yesterday.  I went to 7-11 today and dropped my nachos all over the cashier!!!!!!! I have been a wreck all day.....and I have an event with work today where I have to make a speech...I can only see how that is going to turn out

However, I do feel much better, thanks to everyone's helpful advice. Wish me luck with settlement on Tuesday!

Take care,

Charlie Jean

Hey there and thanks for your help! My email address is
[email protected] and my phone number is 703-434-2905.  

I need all the help I could.  What I really need is someone to come to close with me Any Volunteers?????

Kisses Charlie

Remember that they are working for YOU...not the other way around and they are not doing you a favor.  I'd have gone over their head and had them fired off my account.  I'd have said that I was going to find other financing unless I never had to deal with that person again.

It's a littla late, but not too late to find other financing, depending on your credit worthiness....and why are they going to settlement in the middle of the month?

Usually people place settlements as close to the end of the month as possible to avoid a large upfront prepayment of interest.

You are paying 15 days worth of interest...(from the 15th to the end of the month)...that might be the difference right there...

I am closing in the middle of the month because my lease is up at the end of the month and I wouldnt have enough time to move. This was all sort of "not planned".  Either way, I am investing my money into property and I hope I cannot go wrong with that.  I wish I had the balls to raise holy hell, but I just can't.  That is when I wish I had a husband to take care of all this...but unfortunately it is just me.  I am going to go ahead with the closing, but like others have said...I will go to the top of the company to make sure other people don't have to put up with his crap.

Thanks for your advice!

CJ

CJ, you're gonna' be all right baby.  They got you so worked up that you are seeking some sort of revenge.  That's not like you, but it is human.  It happens to the calmest of us.  Apparently a feature of our ancient brain stem derived from the basic need of animal survival.  You are MUCH better than that.  Sleep on it; then you'll see what I mean.  

 You have all ready achieved great success by following your gut instincts.  I told you that banker would get HIS and soon.  Go ahead and take a bit of glee from that fact.  You're only human and he apparently deserved it.  Then, get back to regaining your cool and focusing.  The last thing you want to do is lose your cool by trying to become something that you are not (and probably shouldn't be).  As a lawyer once told me: "you catch more flies with honey".  Combative behavior solicits combative responses.  That's how we have wars.  Instead, play to your strengths: being polite and nice, but firm, professional and intelligent.  Play all of your "strategy moves" in the "backchannel" (so to speak).

 It sounds like you have had a great deal of weight lifted from your shoulders (in no small part due to your efforts).  It is only natural to wonder if the weight is still there.  You haven't had recovery time, yet.  From my vantage point, it looks like you are almost home (pardon the pun).  Keep focused on that "light at the end of the tunnel".  More and more it appears that it is NOT "an oncoming train".  

 Have faith and confidence in yourself.  You are NO dummy.  Have a positive outlook.  It has been proven time and time again that a positive outlook leads to success.  So often, we get what we imagine.  Try to key your imagination on a positive image and result.  And then BECOME that person.  If you feel weak, that will show.  Don't let it.  If you are confident, it will show and the LAST thing they will think is that you are "easy pickings".  Make them fear you, for a change.  Get your power from knowledge so you know they can't bull you.  Then, don't let them.

 Women do succeed in this country; they just have to work harder.  Look what you've done with your business and your day career.  You're gonna make it, sweetie.  

 

-- Modified on 3/10/2005 8:27:29 PM