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My loan has been dragged for over 7 months. What should I do?

I started refinance for an investment property with Bank of America in early May 2010. The loan officer locked a 60 day rate for me. BoA charged us for $635 in appraisal. The appraisal came back 30k less than the appraisal I had in Jan 2010. We listed reasons to show that appraisal was inaccurate, but BoA was not willing to change. The loan officer told us that we had to pay down 30k more in order to continue the loan process. We said yes. Somehow from that point on, the loan officer started to purposely delay the process. We have been repeatedly asked for providing updated docs. We have provided our pay-stubs and bank statements three times already, one in May, one in Aug. and one in Nov. We were repeatedly told that the loan was very close to be approved, including one email on Nov 9. But after that Nov 9 email, suddenly no responses to our emails and calls from BoA at all. Yesterday, we were surprisely told that our loan had been cancelled due to lacking of documents and our loan officer left BoA in Nov. We were very upset. The manager at BoA told us that the only thing they could do is to restart the loan process and our rate would be higher. That is absurd. I told BoA that it was unacceptable. The reasons that we did not walk away were 1) we paid $635 for appraisal, 2) the tenant told us that he wished it was the last time that he had to help with appraisal. We have talked with the credit card company a few months ago. The credit card company said BoA still processed the loan and so we could not dispute the charge right now. I would like to know what I can do if BoA insists for a higher rate. Is there any regulation to prevent loan officer or lender treat consumer like this?    Thanks

  • December 14 2010 - El Cerrito
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Answers (6)

Freddie Mac Link

Fannie Mae Link

If you get a match for one of those, you MIGHT be able to get waiver, but it depends on a variety of factors.

  • December 14 2010
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Profile picture for Lynn98
Thanks. How do I check whether my investment property is owned by Fannie Mae or Freddie Mac? The current mortgage is from Citi. 
  • December 14 2010
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I agree there isn't much you can do other than try and get your appraisal fee back, and the decide if current rates would still benefit you on a refinance.

You might want to check if your current investment property is owned by Fannie Mae or Freddie Mac.   If it is, you might be able to get an appraisal waiver if your transaction is rate and term.  That could help to avoid you disturbing your tenant.

As for the originator at B of A, there are great originators and horrible originators at every possible source for financing.   Where they work is not a determining factor in their capability.

  • December 14 2010
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Profile picture for Lynn98
The concern for me now is that my tenant would be upset if I ask him to help with appraisal again. I still cannot believe that the loan officer at such big bank was so un-ethic and there is nothing to protect the consumers from this kind of behavior. I have done many refinances and loans before. All of them were closed less than 2 months.  
  • December 14 2010
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I don't know of any regulation that is going to protect your original rate by forcing B of A to help you out.  Trying to get yesterday's rate is like trying to buy stock at yesterday's prices.  It's not available.  

At this point, I would recommend looking for a broker to work with who can find for you the lender with the best rates and who won't take more than 30-45 days to close your loan.  

As far as your appraisal fee is concerned, B of A should refund your money.  Your loan has already taken 7 months with no approval, why would you ever go back?  What's changed?  Have they sped up so much now that your loan is only going to take 5 months to get approved?
  • December 14 2010
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credit reports and appraisals are good for 90 days.  Most investors ie Bof A, Wells Fargo, GMAC and all lenders want the file delivered by than.  I would ask Bof A to credit you back for that appraisal for their lack of attention.  As for rates YUCK.  A investment property start at 5.5 to 5.75% nowa days. 

  • December 14 2010
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