Complain about a product or service

Anvil Mortgage

Lanette of Jamaica, NY, writes (3/28/01):
I attended a seminar where I was pre-approved for a home loan. I paid an application fee of $500, but was told there by the president that it was not so much a fee, because there were no fees for an application but rather that the money was to be used for an appraisal of the home and any other credit reports needed. The money was non-refundable after 3 business days.

The problem begins when I call on the first business day of being approved and had a question. My loan officer could not help me because my papers were not in the office, I would have to call later on in the week to ask any questions regarding my application. I ask if I can come in to bring in the rest of my papers to complete the application process and she said to hold on to them, until I have a house, that way they they don't get the papers lost.

The 3 days are now up!

I finally find a home I like but told by my loan officer that I cannot make an offer on the home until she has my paper work and said I should overnight it to her (spend more money). The house later gets an accepted offer and I lose my chance at it. I later find another house and let her know that the seller would not take an offer from me until I have the house appraised by FHA, he would wait for me to do so. I call my loan officer and let her know that I need to have this home appraised and she tells me no, I would have to wait till I have an executed contract.

I tried to explain to her that I can't have an executed contract because first I don't have a lawyer yet, I don't have an accepted offer or the house has not been appraised, and it would make no sence to have a contract if the house has not been appraised. I further told her that I had already paid for it through my fee. She became very upset and said that this is their fee and that if I did not cancel within the 3 days, then the fee is nonrefundable, and it becomes their fee for providing me service through the house buying process.

I told her that was ludicrous, especially when at the seminar, it was pointed out that the $500 was to be used to have the house appraised. I also told her to point out to me where in my application does it state that I had to have an executed contract before I had my home appraised and she just said "it's company policy/rule".

I went on to use National Home Mortgage who is having the home appraised well before a contract is executed, because that is one of the first steps of the home buying process. Furthermore, this was suppose to be an FHA loan and FHA does not require a fee nor do they require for a contract to be in force before they appraise a home. Anvil has misled me, misled the customers at the seminar and downright cheated me out of my money, $500! And if the money is nonrefundable and is their fee for providing service to me, then they did a horrible job. My loan officer was very nasty and rude, was non-informative and gave me the run-around.

The simplest way for Lanette to get her money back is to sue in Small Claims, Big Stakes: IntroSmall Claims Court.

Edith of Bronx, NY, writes (3/26/01):
I attended a seminar that was constantly offered in the paper to be able to get my own home even with okay credit. I was "preapproved" for the loan and was surprisingly granted up to $170,000 after I paid a small fee of $500 to get step-by-step assistance. I did not receive any assistance and left over 25 messages in the last 5 months. I would like a refund for no services rendered. I have left five messages as instructed to receive a refund but no one has called me back.

I feel stupid, used and manipulated to believe that I could own my own home with their assistance. I am angry that they took $500 from me that I still haven't finished paying off my credit card.

Christine of Greenwood Lake, NY (/19/2000):
Approximately one year ago, I saw an ad in the New York Post for First Time Homebuyers with not so good credit to attend a seminar to help attain a mortgage. We went to the seminar and were told that $90 million was set aside by the government to help people in my situation. At the seminar we gave a $500 application fee and was told that in the event you find a home this money would be put aside toward your closing cost.

At the seminar we were pre-approved for a $165,000 mortgage. All we had to do was find a home that met FHA Requirements. We did find a home and we were getting a sellars concession of $5000 to help with the closing cost. Whenever I spoke to the agents on the phone I was told that even with the concession, I had to come up with another $5,000 to $6,000 more for closing cost. They also said I had to give them $1,450 two weeks prior to closing for a commitment. I gave them the $1,450 and apparently this was 1 point.

They then get an additional 3 points at closing which is where the $5,000 concession would have went to. That is why I still had to come up with more money. It turns out the day before closing we find out that the house we were in the process of buying did not meet FHA requirements and we could not purchase the home. I then asked for my money to be refunded to me and they said they would not do that, but they would put it toward another home when we found one.

We searched again and found another home which we are in the process of buying now. Our closing is planned for September 15th. An appraisal was done by the mortgage company and I received a good faith estimate. I thought the interest rate was a little high (9 1/2%) so I got on-line on Lending Tree.Com. They quoted me a much lower rate with no points.

I had not signed the committment with Anvil for this home and told them I would like to have my files transferred to the other mortgage company. They told me they would not transfer my records, unless I gave them another $1,855. This was 1 point and the appraisal fee. I understand that I would be penalized for the transferring of the file, but I do not understand where my original $1,450 went. I would have no problem giving them the additional $100 since the price of the house was higher, but I feel that giving them $1,855 more is unacceptable. I told them to forget about the appraisal, I would just have the new mortgage company issue a new appraisal and they said that they own the case number and that no other mortgage company can appraise the house for us unless this fee is paid to them. I have to close no later then September 15, so I either have to pay them the $1,855 to transfer or sign the commitment for 9 1/2% interest rate and $6000 more needed for closing.

I have already lost $1,950 toward the first home, not to mention the cost of the survey, home inspections, etc. We had everything packed up and ready to go and were told the day before closing that every thing was cancelled. We had to then tell the tenants that were to moving into my apartment that we were no longer moving. This was very hard on my whole family emotionally and economically. I have 3 children and both my husband and myself have worked really hard to buy our own home.

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