Home Ownership (misc.consumers.house)

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Default Dishonest Mortgage Lender - Allstate Funding

We recently purchased a house and ran into a crooked mortgage lender,
Because of their deceptive and dishonest practice, we were tricked and
forced to use them for home loan or at risk of losing the house. this
merely is a warning if you are choosing a morgage company. we also
welcome any consumer advise in any possible action we might be able to
take against them.

The company is Allstate Funding, also known as Allstate Home Loans,
previously known as First Finance located at Scottsdale, Arizona.

The main issue here is their dishonest business practice, but they are
also high cost, bad service, and incompetent. I will give examples in
each category:

1. Dishonest business practice: We were purchasing a 1031 Exchange
property, which normally is a investment property. They first made
falsely promises that they would finance it as a second home, thus give
us a lower interest rate. Then after almost a month, one day before the
closing date, after I called and told them we are at risk of losing the
house if the signing paper still don't go to the title company, the
branch manager called me and dropped the bomb and told us the interest
rate is going to be 0.5 higher - knowing well at this time we had no
choice but to go with them or lose the house. For the whole month, they
didn't tell us the real interest rate, knowing fully well we'd go with
a different lender. Because of their deceptive practice, we were
tricked and then forced to use them as the mortgage company or risk
losing the house, thus incurring financial loss with a higher monthly
morgage.

2. High Cost: their actual processing fee is about $600 higher than
what they give us in the 'good faith estimate' - several fees didn't
appear on the good faith estimate such as 'documentation preparation
fee of 200 and 'funding fee' of 200. Their processing fee is $795,
which is several hundred higher than other companies. All together,
they charged us $1600 for processing the loan - not including 1% loan
origination fee. They also required some uncommon additional insurance
from the title company, so our title fee ended up $300 higher than
expected.

3. Incompetency: It took over a month for them to finally fund the
loan. 3 weeks after we turned in the loan application and required
documents, they requested an additional paystub which should have be
requested much earlier. One day after the closing date, I was still
required a missing signature and had to go to the office to sign it.
The funds didn't arrive until 4 days after the closing date stated on
the contract.

4. Customer Service: Their customer service got worse the longer they
had the loan application, knowing we are not going anywhere with the
closing date near. For one and half weeks before closing, they didnt'
give us any information - no phone calls or emails were returned.
During that time, the title company, the seller, teh sellers realtor,
and I have repeatedly called them, without getting any responses. When
I complained to the branch manager, the branch manager, who is in his
twenties, yelled at me over the phone, these people acted like my best
friend before they get the business, but simply ignored us after they
got our business.

This past month has been a nightmare with this mortgage company, we
learned to be much more careful selecting a mortgage company the next
time around. Because we were forced to accept the loan at the higher
interest rate, we are considering taking action against them either via
state attorney generals office or some legal measures. Any further
advise is appreciated.

Mike

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Bob Ward
 
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On 15 Dec 2004 10:39:20 -0800, wrote:

We recently purchased a house and ran into a crooked mortgage lender,
Because of their deceptive and dishonest practice, we were tricked and
forced to use them for home loan or at risk of losing the house. this
merely is a warning if you are choosing a morgage company. we also
welcome any consumer advise in any possible action we might be able to
take against them.

The company is Allstate Funding, also known as Allstate Home Loans,
previously known as First Finance located at Scottsdale, Arizona.

The main issue here is their dishonest business practice, but they are
also high cost, bad service, and incompetent. I will give examples in
each category:

1. Dishonest business practice: We were purchasing a 1031 Exchange
property, which normally is a investment property. They first made
falsely promises that they would finance it as a second home, thus give
us a lower interest rate. Then after almost a month, one day before the
closing date, after I called and told them we are at risk of losing the
house if the signing paper still don't go to the title company, the
branch manager called me and dropped the bomb and told us the interest
rate is going to be 0.5 higher - knowing well at this time we had no
choice but to go with them or lose the house. For the whole month, they
didn't tell us the real interest rate, knowing fully well we'd go with
a different lender. Because of their deceptive practice, we were
tricked and then forced to use them as the mortgage company or risk
losing the house, thus incurring financial loss with a higher monthly
morgage.

2. High Cost: their actual processing fee is about $600 higher than
what they give us in the 'good faith estimate' - several fees didn't
appear on the good faith estimate such as 'documentation preparation
fee of 200 and 'funding fee' of 200. Their processing fee is $795,
which is several hundred higher than other companies. All together,
they charged us $1600 for processing the loan - not including 1% loan
origination fee. They also required some uncommon additional insurance
from the title company, so our title fee ended up $300 higher than
expected.

3. Incompetency: It took over a month for them to finally fund the
loan. 3 weeks after we turned in the loan application and required
documents, they requested an additional paystub which should have be
requested much earlier. One day after the closing date, I was still
required a missing signature and had to go to the office to sign it.
The funds didn't arrive until 4 days after the closing date stated on
the contract.

4. Customer Service: Their customer service got worse the longer they
had the loan application, knowing we are not going anywhere with the
closing date near. For one and half weeks before closing, they didnt'
give us any information - no phone calls or emails were returned.
During that time, the title company, the seller, teh sellers realtor,
and I have repeatedly called them, without getting any responses. When
I complained to the branch manager, the branch manager, who is in his
twenties, yelled at me over the phone, these people acted like my best
friend before they get the business, but simply ignored us after they
got our business.

This past month has been a nightmare with this mortgage company, we
learned to be much more careful selecting a mortgage company the next
time around. Because we were forced to accept the loan at the higher
interest rate, we are considering taking action against them either via
state attorney generals office or some legal measures. Any further
advise is appreciated.

Mike



Where was YOUR attorney when all this was taking place?
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v
 
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On 15 Dec 2004 10:39:20 -0800, someone wrote:

....Because we were forced to accept the loan at the higher
interest rate,

If it was not a good deal, you should not have bought the house.

You said you did this as a 1031 exchange - that right there is putting
in an extra complication , so it was not a 'normal' home purchase.
Sounds like a case of who's zooming who. You were being 'clever' and
making a 'deal' - and it didn't quite go as smooth as you wanted - oh
well.


Reply to NG only - this e.mail address goes to a kill file.
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John A. Weeks III
 
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In article .com,
wrote:

We recently purchased a house and ran into a crooked mortgage lender,
Because of their deceptive and dishonest practice, we were tricked and
forced to use them for home loan or at risk of losing the house. this
merely is a warning if you are choosing a mortgage company. we also
welcome any consumer advise in any possible action we might be able to
take against them.


Did you call the Police? The only way you could have been forced
into this problem is if they held a gun to your head, and that
is a crime in Arizona. Better call 911 and report it.

The company is Allstate Funding, also known as Allstate Home Loans,
previously known as First Finance located at Scottsdale, Arizona.


1. Dishonest business practice: We were purchasing a 1031 Exchange
property, which normally is a investment property.


So, you go to a HOME LOAN place for a business investment loan?
Dumb mistake #1.

us a lower interest rate. Then after almost a month, one day before the
closing date, after I called and told them we are at risk of losing the
house if the signing paper still don't go to the title company, the
branch manager called me and dropped the bomb and told us the interest
rate is going to be 0.5 higher - knowing well at this time we had no
choice but to go with them or lose the house. For the whole month, they
didn't tell us the real interest rate, knowing fully well we'd go with
a different lender. Because of their deceptive practice, we were
tricked and then forced to use them as the mortgage company or risk
losing the house, thus incurring financial loss with a higher monthly
mortgage.


Did you sign a loan lock form? Sounds like you didn't. Interest
rates go up and down, and a half point change is not uncommon,
especially since the Government has been raising interest rates
over the past months. Dumb mistake #2.

2. High Cost: their actual processing fee is about $600 higher than
what they give us in the 'good faith estimate' - several fees didn't
appear on the good faith estimate such as 'documentation preparation
fee of 200 and 'funding fee' of 200. Their processing fee is $795,
which is several hundred higher than other companies. All together,
they charged us $1600 for processing the loan - not including 1% loan
origination fee. They also required some uncommon additional insurance
from the title company, so our title fee ended up $300 higher than
expected.


What did the goof faith estimates look like from other companies?
Oh, you didn't shop around? Dumb mistake #3.

3. Incompetency: It took over a month for them to finally fund the
loan. 3 weeks after we turned in the loan application and required
documents, they requested an additional paystub which should have be
requested much earlier.


A month to 6 weeks is not uncommon for underwriting a loan,
especially given how busy these places are right now. Did you
ask up front if they could meet your deadlines? Not likely.

One day after the closing date, I was still
required a missing signature and had to go to the office to sign it.


This is not all that uncommon, either. In fact, you likely
signed a form stating that if something was overlooked, missing,
or in error, you would cooperate in fixing it.

4. Customer Service: Their customer service got worse the longer they
had the loan application, knowing we are not going anywhere with the
closing date near.


While this is not a good long term business practice, keep in
mind that these companies are really busy right now, they are
staffed with overflow temps to keep up, and you didn't shop around
and have any other alternatives to play off against them. That
is your fault.

This past month has been a nightmare with this mortgage company, we
learned to be much more careful selecting a mortgage company the next
time around.


What really bothers me is where your team members were. You should
always have a licensed real estate agent and a real estate attorney
in your corner on these kinds of mega-deals. The risk of mistake
is high, and the amount of horsepower that is needed to fix
mistakes is also high. You apparently went in naked, and you
got exactly what you asked for. Dumb mistake #4.

Because we were forced to accept the loan at the higher
interest rate, we are considering taking action against them either via
state attorney generals office or some legal measures.


You were not forced unless a gun was involved. Get the chip off
or your should and take some personal responsibility.

Any further advise is appreciated.


Consider this a cheap education. You went in with your pants down,
and you could really have gotten screwed in the corn-hole, dude.
You are lucky to get out of this with only $1600 cash and a half
point given up to the house, and you probably would have ended up
paying those anyway no matter what loan company you went with.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708

Newave Communications
http://www.johnweeks.com
================================================== ====================
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Zony
 
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wrote

snip

Because of their deceptive and dishonest practice, we were tricked and
forced to use them for home loan or at risk of losing the house.


snip

Because we were forced to accept the loan at the higher
interest rate


You have to watch out for those tough loan companies. Here's what happened
to me.

Loan Officer: Sign z papers old man.

Me: I can't

Loan Officer: Signs Z PAPERS old man.

Me: But, I can't

Loan Officer: And WHY can't you signs Z papers old man?

Me: Because you broke both my hands.



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I hope it doesn't take a genius to see how deceptive, incompetent, high
cost this mortgage is - as the examples I have provided in the original
posting. I'm posting this as much as warning to potential mortgage loan
borrowers as seeking advise in recouping some of the losses - which may
or may not be possible at this point. Your emotional attack is totally
uncalled for nor does it provide any helpful information, almost makes
people wonder what your motive may be - take a deep breath please.

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There is no 'deal'. We had a few other preapproved loans - we went with
them after their manager repeatedly assured us they will give us the
rate they stated they would. They basically begged us for the business.
And we gave them a chance - I figure it they came back and said it's
going to be 0.5 higher, I'd go with our other options - The fact they
were so low as to withheld information until the last minute when one
is out of options is beyond my wildest dreams.

If my orignal posting serves to warn just one potential mortgage
borrowers against such predatory practices, it would have served it's
purpose.

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