Home loan approval question?

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So we are in a process of getting our house. Today we got a big envelope with Truth in Lending disclosure. It also has a loan company (bell homeloans) plus it says our lender is Sierra Pacific Mortgage, which probably means that the loan was sold or is being sold? Does this mean that we’ll most likely get our house soon?

Ok, our bank, Wells Fargo, bough out our mortgage from Sierra Pacific almost a year ago. Yesterday we went to the bank to try to refinance and we find out our loan is AMR NOT 30 year fixed like we sighned the papers too!!! So when the bank repossessed our mortgage, the changed it, is that even legal??? I’m really upset because they can’t even tell us how many years the AMR is fixed. HELP? WHAT SHOULD WE DO AND WHAT ARE OUR OPTIONS!!!
As soon as I came home, we pulled out the papers to make sure, and yes, we signed for a 30 year fixed loan.
Sorry about the repossessed word. No, we were never late on our payments or anything, i guess it happens allot when banks take over your mortgage, well that’s what happened, we didn’t try to refinance or anything until now. We went to the bank, and they say, “Oh, you have an ARM, for how many years?” And I’m like, ” NO we have 30 years fixed” He said, “well look, our records show that you have ARM, you probably forgot.” RIIIIIGHT. I went home and reviewed all the loan paperwork, I’m not dumb, I know when it says 30 years fixed.

7 Comments
  1. Reply
    Helen
    January 20, 2011 at 10:35 pm

    When applying for a home loan your credit report will be reviewed and you may be required to provide a number of other details, including: Employment and income records, Tax Returns for the last few years List of assets, List of liabilities and what you owe, Your budget showing monthly living expenses so that you can demonstrate an ability to pay.

    http://www.worldbestloans.com/homeloans.htm

    With this information you and your lender will be able to determine the kind of home loan and size of the right mortgage for you. In some cases, you can obtain a pre-approval or pre-qualified certificate, which shows how much you can borrow so that you can then shop for homes in an appropriate price range.

  2. Reply
    Steve L
    January 20, 2011 at 11:05 pm

    Yes generally speaking one get the truth and lending statements in the mail. Often this will be followed by a letter from the actual lender in this case Sierra Pacific Mortgage. The key word, is the word “is your lender.” This is how my most recent mortgage went down. I received the disclosure statement followed by acceptance letter followed by a rejection letter however when you check the dates on the two letter you discover that the rejection letter is dated 4 days before the acceptance letter. I have been in my new double wide for three months now.

  3. Reply
    goz1111
    January 20, 2011 at 11:33 pm

    sounds like you need to retain legal advice, legally a bank could not change a 30 year fix to an arm, so it may revert back to the original lender and those papers which you signed to see if what you though you singed was a 30 fix was in reality an arm

    that would be my bet over wells Fargo just changing the term

  4. Reply
    efflandt
    January 20, 2011 at 11:50 pm

    The sequence of events is not really clear. Do your original mortgage documents show a 30 year fixed rate and fixed payments for that time, or an ARM type loan that resets after so many years?

    The term “repossesed” is confusing. Were you late with any payments, did your lender begin foreclosure, or did you renegotiate the loan at any time? If your loan went into default or you worked out a loan modification, that may change your interest rate.

    The first thing you need to do is read your original loan documents and any later documentation or letters. Then ask your lender or consult an attorney if you do not understand it.

  5. Reply
    Big daddy
    January 21, 2011 at 12:33 am

    Either you are missing an amendment in your paperwork that structured your loan differently, or your loan was input incorrectly by Sierra Pacific. Lenders cannot just change terms, but things can get screwed up as you have found out. I would take the entire loan package to wells to show them that you have a 30yr fixed as you claim. They bought the mortgage, they should have a good idea of what they purchased. (now you know why investors don’t want to buy mortgages anymore) If they give you any slack I would politely ask when your note is about to reset and look to either refinance or hire an attorney. That’s up to you, but be forewarned that if you go the attorney route and this is an arm for whatever reason and it’s about to reset, your going to be in for a shock with the new payment, legal action may take too long. speak with wells asap, face to face, with docs in hand, this is not a phone conversation scenario and then take appropriate measures, but I would start looking for a company that will listen to your mortgage needs and future goals, just to have a backup plan, good luck and feel free to ask questions

  6. Reply
    FRANK Mortgage Broker
    January 21, 2011 at 12:38 am

    Bank can not change terms of loan. Check at Recorder of Deeds office, and verify what docs are recorded. If the loan papers say that it is a 30 year fixed, and there is no place where it says that there is a rate adjustment, then the terms can not be changed.

    I am former Recdorder of Deeds.

  7. Reply
    Real Estate Guy
    January 21, 2011 at 1:01 am

    BANKS CANNOT CHANGE THE TERMS OF THE LOAN. Even they are sold. There has to be more to this story.

    I would talk with real estate lawyer TODAY. Go back to the title company that did the settlement and have them explain the terms of the paperwork to you.

    If in fact you have a straight 30 year note, then take this to the bank and have them explain why they are changing the terms (which they can’t)

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