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My Mortgage broker contacted World Savings for a equity or re-finance loan on my home of 27 years in Sarasota. FL.
I received in the mail 2 sets of documents from World Savings on Jan. 11, 2007, of the same.
One said your Loan Documents...sign and return with a pre-paid envelope. Loan amount of $ 380,000 terms of the loan interest rates everything completed.
I signed all the pages in front of my Mortgage broker, Jan. 11, 2007, after discussing the terms of the loan and I accepted. There was no where on the pages that called for a notery but I signed and dated all the pages in front of him. He made a copy for him and myself and the papers were mailed back with them recieving the papers back the next day, Jan. 12, 2007.
I asked my Mortgage broker if that was it or could they come back with a different amount and he said no that I signed the contract and that was it.
That all was left was for them to take out the monies for closing, paying off the current loan, fees, and that should be around $ 10-15,000.
The other set of Documents said... Your Loan Document papers... Keep for your records.
No where did it say pending loan or proposed loan... they sent me a Loan Contract for $380,000 to sign an return and I did just that.
Now they are saying, 14 days later, that they don't know how much they
will loan me????? If I changed my mind,after the 3 days right of refusal, and they wished to hold me to it wouldn't it be legal then?
My question is, isn't this a legal binding contract? They offered me a contrat and I acepted it, signed it and returned it signed and dated on all the many pages.. No where did it say pending loan or proposed loan. sign an return.
If you did not speak sign at a title agency, or with a notary present at the time of signing, then it is not valid..
Are they saying the loan is funded at this point?
How long have you been in the process with your mortgage broker?
It sounds to me like what you signed are jsu tthe preliminary documents..
The way a mortgage refinance works is the broker puts together an application, sends it to you to sign, and then they submit the fiel to processing..
The preliminary documents are required to prove that you in fact "agree" to the terms of the loan, and want to move forward with the loan...
Many things can happen from the time of signing preliminary documents to the actual closing of the loan.. (Appraisal comes in lower, income is lower on w2's, liens on title, etc.)
Once the broker gets a "clear to close" from the bank/lender, you can then set up your final mortgage closing..
This can be at a title company, or a mobile close in which a LICENSED notary meets you to have you sign the documents.. The notary is simply a "whitness" that you signed the documents, nad not anyone else...
Unless you did this step, then chances are you ahve not completed this loan...
It sounds like you ahve a broker that is just stringing you along.. I have been a licensed loan officer for many years, and would have no problem assisting you..
Take a look at my profile, and feel free to contact me at any time..
I did the same process about 5 months ago when I got rid of my ARM to a fixed mortage and that was all I had to do, they mailed me 2 sets of documents but they required me to have it notorized.
It sounds to me like you signed the preliminary loan documents, not the closing documents. The closing documents such as the mortgage, mortgage note, etc. would have to be notarized and recorded.
The preliminary documents are things like the Federal Truth-in-Lending Disclosure Statement, Good Faith Estimate of Charges and similar preliminary documents. They are not binding but are merely preliminary papers that the lender is required by law to send you before the loan closes.
Here is the important part: you need to look through your copies of the documents for any kind of form or letter from the lender that is a Loan Commitment. It may be in the form of a letter addressed to you where they agree to lend you $xxx for xx years at an interest rate of xx%, subject to the following conditions...
This is a loan commitment and it IS binding on the lender as long as you have fulfilled all of the conditions listed in the letter. So look through your paperwork to see if there is a commitment in there. Also contact your mortgage broker and ask if this package included a written commitment.
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