Friday, November 16, 2007

Maybe I am.. maybe I'm not.

Readers...I'm sorry posting has been light this week. I've been very stressed out.

I don't even know how to describe what has happened this week. Let's just say I've learned a lot about the mortgage industry. Whatever you think you knew - toss that all out. It is now a market of fear and over-reactions. Guaranteed to make you eat your stomach lining.

Everything was going swimmingly on the house. Until this week. Two days before signing, my lender informed us there was a new rule in place. Instead of putting 10% down, the lender wanted 15%.

This was not a shady lender. I've used them twice before. It's a big reputable company. But because of the market, all the lenders started implementing some new rules. Which would have been fine if I would have known earlier in the process. Like for example when the lender first knew. Instead they decided to send me a good faith estimate with the original 10% down even after they knew about the rule.

Which pissed me off. Mr S. and I were going to exit the deal. I mean... do they think people are just going to just say "okay" to something like that? Two days before signing? And I wasn't just playing chess with the lender - I meant it. I'd resolved myself to having the winter of naps. That house is going to be a lot of work.

And let me just say - it wasn't the people who put down less than 20% on houses that fucked up the mortgage market. It was the people who got crazy teaser interest rates. When their loans adjusted to the prevailing interest rate, they couldn't afford to make the payments. If they had gotten a loan with a realistic interest rate in the beginning - many people would not have been able to afford houses. But there wouldn't be as many defaults either.

For example when we bought our first starter home, it was really common to only put 10% down. There was a very low default rate, until people got into creative financing. But I'm getting off track.

Anyway - when I made it clear to my agent/friend we were going to exit the market, and wait for the mortgage companies to figure out how to do business. Everything blew up. I'm not sure what the back story is yet - but I've never seen a bigger reversal by a giant company in my life. The mortgage agent called me back and was so far up my ass I felt really uncomfortable. To the point of telling me that if we didn't close on time, they were going to pay all the fee's incurred in that. Paying to have couriers drive to my husbands job. Just really crazy groveling.

It made it even weirder that I didn't even make a big deal about anything. We just figured we didn't want to chase a house. If we could buy it under the terms we agreed on, fine. If not.. we'd wait until another point. Its freaky to get your way, when your not trying to.

I can only guess the lender did something illegal in sending out the good faith agreement. If the deal closes I'll be able to find out. Right now, everyone is in protection mode.

1 comment:

caramaena said...

Ugh sounds messy. Hope it all works out to your satisfaction.