Well I am on Day 112 of my refi with my current mortgage company ... I keep being told that I am approved for the loan but it is taking f o r e v e r ...
I was promised that it would be done within 80 days and that didn't happen.
I talked to my regular bank and they said that if you are refinancing through your current lender, you go to the back of the line for processing. They figure they have your business anyway and so are more worried about 'new' customers.
Then I found out that someone bought a house in my neighborhood and made settlement in less than 30 days. With the same bank. This all happened last month !
I am at the end of my rope with this. This entire process has been one screw up after another after another with this bank (it's Citimortgage by the way).
If I pull the plug and go with someone else, will that effect my credit score ? I'm just so frustrated about the whole thing.
Anyone else have similar issues ?
Last edited by Roxyllsk; Feb. 10, 2013 at 05:40 PM.
Contact a local mortgage broker that is a full service, multilender dealer. If you are doing FHA or VA, then make sure that there is someone in the office that handles them (I think they call them underwriters). Ask them about it,and how much it will cost you to go through them. I did my last refi in less than a month, through a broker, and got a great deal. I wouldn't deal with someone like the current lender who is treating you like garbage.
They have made so many mistakes ... for instance 4 weeks ago they told me they were waiting on the title company.
Well, the title company called to verify some information and I asked why they were holding things up, and they told me they were waiting on Citi ! So I emailed my processor with the name and phone number of the person I spoke to at the title company and all of a sudden things started moving again !
They also told me I had a tax lien against the property - um, NO. If my taxes aren't being paid, then that is a problem since I am putting money in escrow for Citi to pay them for me as they are my current mortgage holder. I called my township and there are no tax liens, and there never have been ! I am the first and only owner of my property. That took 2 weeks to clear up !
I am planning on reporting them to the banking and insurance bureau.
My biggest concern is that if I pull the plug and demand my application fee back (because they have essentially done very little), will that negatively effect my credit ?
This is a simple, conventional loan - I have excellent credit, I have half the house paid off, and the house is assessing higher than what I bought it for 9 years ago ... seriously Citibank, WTF ?
We use citimortgage, and just refianced with them.They actually bought our original mortgage, so we did not deal with them when we bought the house. The refi was done online and over the phone, one small fee, no paper work and no hassel. Went quick and smooth.
Refis, in general, are taking a huge amount of time right now because so many people are doing them. I just did two (on investment properties) and they took ~90 days (and I was pushing pretty hard because one of them had to close or else I would've had to pay some big penalties). The bank I used (smaller, local bank) was extremely helpful, professional, and friendly - I just had to wait for my file to be next in line.
Canceling now may adversely affect your credit because they have probably already done the hard hit on your credit when you applied. If you apply with another bank, that will be another hard hit and since you have waited so long, it won't be treated as "shopping" (typically, you can have multiple, similar credit checks/hits in 30 days and it is assumed that you are "shopping" for a loan/mortgage/credit card). How much it affects your credit depends on your current score and what else is on your credit report. In addition, if you switch banks now, you are back to square one so will have to provide all the documentation again and a new appraisal fee will typically be required, and is usually non-refundable. The advantage of withdrawing your application and going elsewhere is that, as a new customer, you may, as others have suggested, get better service, but you are still possibly looking at over a month (or up to 3 months depending on where you live and the bank you choose).
Typically, new mortgages close faster than refis because there are contractual deadlines that need to be met when someone is buying a house, so those get priority over refis that typically have no "deadlines" to be met.
I have only dealt with Citibank via a credit card and I was very much not impressed. I would not do business with them again.
I hate citimortgage. They are involved in a huge lawsuit and we're homeless because of them. My landlord was trying to do a motiafication to remove his ex wife from the loan and they foreclosed on him instead. They went to evict him and evicted us instead. Instead of giving us notice to move they lied to the sheriff about talking to us and told the sheriff to get us out that day!
I have heard that they have been foreclosing on homes that there was no problems with the loans and even foreclosing on homes that were paid off! Just be careful with them they're crooks
Ug .. I was worried that it would negatively effect my credit score. I have an excellent credit score (mid 700s) ...
I think I need to send yet another email. They told me 2 weeks ago that it was with the underwriter and that it would only take '7 to 10 days' to go to closing.
I've been leaning on them since day 91, since that was on my application package. That's when they told me they were 'Waiting on the title company' but in fact the title company was waiting on THEM.
Oh and another thing, they told me I could apply for the no-closing cost loan, but I actually was not eligible because I have a home equity loan. Then I applied for a conventional loan. They sent me 2 sets of application paperwork, one for each loan. My contact person said just sign the correct one and send it back. Well guess what, they processed BOTH sets. I got a rejection letter for the no-closing cost one because obviously I didn't qualify. THAT took 3 hours of my time to figure out what was going on. WHY would they even process a loan that I didn't sign paperwork on ??
So this whole process has been a complete company-wide screw up.
They have been telling me that they're 'really close' for about a month now. Time to call them Every.Single.Day now ...
Holy crow, that long? I do refi's at work, and our turnaround time is under 10 days. The odd one might take two weeks or so. Any longer and the clients get pretty peeved.
Thats because you are in Canada, and we have regulations in place where banks have to process in a limited time. Same with buying a house there is limitations set, not only on the banks but lawyers as well.
The u.s. system is a whole other matter... I dont envy them at all.
Seems to me banks down there can do what they want. Not so much up here.
We had so many companies hot to get us to re-fi with them, and now we have been in a holding pattern for months. I have hubby handling it because I am tied up with work etc. and they never call back, or tell us they need more info, but after us chasing them for status. We were supposed to close twice and were told not to pay our current mortgage as we would be closing in a week and are still waiting (obviously we did pay the morgage, but what a pain).
We were supposed to close last Friday, now I have no idea when it is. I told hubby to start calling every day. He is so frustrated because every time they ask him for all his info, and it is a local company with the same 3 girls - he says "he has my number" about the guy he is working with, but they act like they've never heard him before. I know they may be busy, but he is on the phone with them several times a week for over 3 months now...
They are lucky I am not handling this - when they said once again that the guy is not available or will call back in 5 minutes, I would say "I'll wait" and sit it out. The guy NEVER calls back same day or even same week! I would start calling every 5 minutes at that point. They'd know my name and number then!
We just did a re-fi in 2012 through Wells Fargo that took months. Months. Way more than 90 days. So bad in fact we got a sorry from Wells Fargo via the gift of Omaha Steaks. I think the fact that Wells Fargo has an account with Omaha Steaks JUST to apologize to people is pretty telling!
Wow, I guess we've just been very lucky. We closed January 30th on our refi. Took about 6 weeks from first contact to closing. We used Springwater Capital as the mortgage broker, and our lender is Provident, which from what I've been told is an incredibly difficult lender due to them being super picky and only taking on low risk loans.
Depending on your location it might take an age just because we are (depending on location) extremely busy right now. My state has a shortage of Certified Appraisers - which are required for FHA/USDA loans - and many lenders require a Certified Appraiser do the work and won't take anything from a licensed appraiser.
My best advice is avoid at all costs the big banks. Including Citibank (and most assuredly Bank of America and Wells Fargo which are the WORST). Go to a local credit union or mortgage broker. You'll likely get a more accurate appraisal (since local people have generally built up good relationships with local appraisers!) and the entire process will be far less frustrating and take far less time. On top of that you'll be helping support local business!
And local businesses generally want happy customers as word of mouth advertising is the best advertising you can get ....
Also important to note : the big lenders (BoA/Wells Fargo, etc) utilize AMC's (Appraisal Management Companies) to find their appraisers. They generally go for the cheapest available appraiser and pocket a good portion of the appraisers fee on TOP of AMC fee's. So you're paying extra for the cheapest appraisal you can get. The cheapest appraisal you can get will often require alterations and edits to please the underwriters and may require multiple reviews... which slow the process down even further.
My refi started in October and just closed in January. I did a no closing cost streamline FHA through Roundpoint, however US Bank owned my loans. FHA streamline requires no appraisal and it should have been relatively fast. However, I had a 2nd mortgage that originally helped me pay for closing costs and downpayment.
This is where the shenanigans began and my simple refi turned into a circus because the 2nd mortgage needed to be resubordinated after the 1st mortgage was refinanced. US Bank basically said they didn't have any responsibility for my 2nd mortgage and therefore couldn't sign off on the subordination documents that I was waiting on.
This went on for more than a month, probably close to two, while they happily still accepted payment on both my first and second mortgages. I was calling once a week to talk to anyone at US Bank, which never got me anywhere. Finally I started emailing my loan officer at Roundpoint every week and more than that if she said she was going to do something during the week. This really got the ball rolling. My agent at Roundpoint was good, but I think they are so busy with refi's that you just need to keep reminding them to get your stuff to the top of the stack.
But I agree, refi's are messed up. How in the heck did the government come up with a program where the bank has no responsibility for the loan, but gets to keep all the interest payments(7.25% at that), and if you default the government pays? As a taxpayer I'm kind of pissed. If I ever have a choice again, I will keep all government programs out of my purchasing decisions as that was the major hold up on my refi.
I've gotten several checks from class action suits over the last few years related to mishandling of my mortgage. With Citi. They weren't the original holder (started with Wells Fargo), but it was one cluster after another. My guess is that they're just completely overwhelmed. If I were in your shoes and had good credit, I'd check out credit union options too.
If there are title issues, I can see it getting strung out. But this sounds more like a lack of resource allocated to your process.
A good horseman doesn't have to tell anyone...the horse already knows.
Wow, I'm in the process of refinancing my house with Shore Mortgage and the organization and people have been extremely helpful, pleasant, and very easy to work with.
They keep me up to date on everything, and the person I'm directly working with says we should be able to go to closing no later than the first week of April, but he's actually hopeful it will be sooner than that.
I'm not underwater on my loan and my debt to income ratio is good, so that may be why it's been a little easier for me than others.
Last edited by arabhorse2; Feb. 18, 2013 at 04:00 PM.
Homeopathy claims water can cure you since it once held medicine. That's like saying you can get sustenance from an empty plate because it once held food.
I had a horrible time 3 years ago with Bank of America. It took forever, didn't get done in the end, and they made many egregious errors, including faxing personal records with my SSN to work- where 100+ people share one fax- they didn't even let me know anything was coming! It was awful!
I called Wells Fargo, ended up working with a guy who was pretty high up in the re-fi department, and he wanted to stick it to BOA so bad that he got the whole thing done in a week. I was so happy when it was finally over!
"Life is too short to be a slave to the whims of others." -- RugBug, COTH