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Read BEFORE You Sign

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Well for me...this is the Season of Humble Pie!

A month or so ago I did a Members Only Blog about Getting Cocky. It was a bit embarrassing but I hoped others would learn a bit from it!

I find myself in that position again. But this time it is something that may benefit Real Estate Consumers also.

About four years ago my husband and I did a small equity line on our house to make some much needed improvements. It meant a minimal payment increase and we continued on as usual.

The past several months have seen some serious changes in our financial situation. My husband 's Company went Bankruptand as a result he was suddenly un-employed! We have been struggling on... on my income (need I say more?).

This week we negotiated with our Bank for an Extension. And since I have a closing next week, we breathed a sigh of relief! But, when my husband went on line yesterday he discovered that not only had the Bank taken out a payment without notifying us...in the process they bounced all bill payments that had been made putting us in arrears, in jeopardy...and incurring check fees of over $600. Totally discounting the negotiated extension.

Now here's the lesson learning part. Being a Realtor I should have had the mind set to SCOUR our Loan Agreement... Before we signed it...but also being an eager Consumer...I didn't! There is a (very small) clause-called Offsetting Deposit- in our Contract that allows the Bank to go into ANY account we have with them-without notification-to take their money if we are in arrears. And they did! I can honestly say if I had been aware of that little fact....I would never have signed

I don't know how this will be resolved. Procedures and rules vary from State to State. Here in New Hampshire it is allowed. We have gone to the NH Banking Commission about it because of some discrepancies...As for resolution...time will tell

PLEASE,keep your emotions in check.Take a lesson from me! Read BEFORE You Sign! Or it will end up costing you... money

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Joan Mirantz - Joni is a Realtor® with Keeler Family Realtors, a locally owned, Customer Service oriented Firm.
Joan Publishes a monthly Newsletter "Food For Thought" under the pen name Realtor Sherpa.
(Joan also answers to Miz Maven and Miss Joni.)

Joan works in Buyer and Seller Representation with concentrations in the Merrimack Valley Area and towns surrounding Concord NH - the Capital City.
"I love what I do, and it shows in how I do it"

www.yourrealtor.biz

Posted by Joan Mirantz- Concord New Hampshire Realtor on 06/27/2007 11:42 PM

Comments (76)

bank, extension, bankrupt, loan agreement, offsetting deposit, contract, realtor, new hampshire, nh banking commission

Originally posted at: Concord NH~Joni~Merrimack County : Read BEFORE You Sign

This post has been included in New Hampshire Information

76 Comments on Read BEFORE You Sign

JUN

2007

Great reminder for all of us. I found when we started looking at homes that I have a really hard time being objective and honest with myself about things when it is such an emotional decision. I really hope that you get your situation in check soon and that only good things happen to you from here on in. You'll be in my prayers tonight.

Ouch...point well taken Joan. I think we as agents sometimes make some of the worst assumptions aout loan agreements. Every day we deal with them...just one more thing for our clients to sign.... Hope things pick up for you soon!!!

Emotion is a big catalyst in decision making. Think of those sellers that think their home is worth $40,000 more than it actually is. It is their emotion talking and not their sense. This was a nice article and thanks for sharing. Maybe it will help someone else.

Doug

That is SO disgusting. It's so annoying to think that simple reading would have prevented such a hassle. Good luck, and your closing will permit you to to breathe again!

Christina...I hope this prompts everyone who reads it to run to the desk and look over their loan agreement!

Chris...they aren't kidding about the "fine print"! (how many times have people asked you if you're related to John Tesch?)

Thank you Doug...that was definately the point I hoped would be made...take out the emotion!

Joan, I hope you get a resolution to this very soon. I think we have all signed something we should have been more careful to read in the past and thank you for the reminder to check the FINE print. Best wishes to you!

Joan- I'm going to look over mine again in the morning when I can see straight!

Thanks laurie...my friend! We'll keep on plugging(and are changing all of our accounts!)

Thanks Carole...this is definately not a Feng Shui Bank! I should have paid attention to the vibes!

Hi Joan -- There is a lesson here. Everyone thinks you go to your bank for a mortgage. Not a very good idea. This is a nationwide law that allows the bank to go after any of your accounts for their payment. That is why mortgage bankers do so well.

Good move Christina!

Have to remember not to let emotions and spontaneous feelings get in the way of good sense! He who doesn't read the fine print can be surprised!

Bruce...That is exactly the reason I will caution any future Clients I have to"Diversify" where they do their business.

Not only does this Bank take full advantage of the law...they encourage customers to take advantage of Savings, checking and money markets...with no fees as a reward. Then they have a bigger pool to drain if they need to!

You know what they say about hindsight!!!

Yup Maureen...that we were!

Boy, what a mess! The Bank obviously failed to keep their word and now all those charges. I will definitely put this away as a lesson to make others aware of. Good luck... I can really feel the strain and the pain!

I'm so glad I read...even though I knew the lender when i bought mine.. I still read and ask questions. Thanks for the reminder and I hope everything works out for you!

Joan, this was really disconcerting to read. Most people do not read the fine print. I read my mortgage once when I could not sleep...and you know what...it put me to sleep! I am truly sorry to hear about the situation and pray that a good resolution will come out of it. Thanks for sharing and educating us in the midst of your experience.

Gary, Thanks for the commisuration. But it helps that you are filing away the lesson!

Sally...I can honestly say... from this point on...I will be a Reader!

Joan, I'll be praying for you to get this all settled. Thank you for sharing this with the rest of you.

Hi Lola...thanks for stopping by.

This definately wasn't a post for "Fresh Aire"LOL

Mana...thanks for commenting. I have a feeling this will definately help a few!

Joan~

I don't know if "lessons learned" offer much solace when distressing situations arise. But I do know that even when you are in the midst of a most challenging situation you have the grace and professionalism to share the lesson with those who may benefit from it, despite your own distress. Thanks for knowing you.

I am so sorry to hear about this terrible situation. I can totally relate as several years ago my wife and I lost our business in a chapter 7. What my wife had failed to tell me as my accountant was that she did not pay the last qtr sales tax to the state and one day all of our money in the bank was gone. We incurred over $1000 in bad check fees. The true killer of it was that I had just deposited some money from a ROTH account I had withdrawn from so we were literally down to no cash with 3 kids to feed.

It will all work itself out fine, it just takes time and faith.

JUN

2007

Thanks for the reminder. I am sorry your lesson had to cost you :(

Joan, great lesson for all to learn from. Thanks for being so transparent as to share your hardship with everyone in the name of educating the public and helping people. I hope business turns for you soon as a result and things get back in the black for you and your family. Good luck and God Bless!

Oh my, this can be very upsetting. Sending you good energy that your business turns around and this incident becomes only a distant memory very soon.

Thank you for sharing this. I'm sure there are many out there who have no idea they are set up with something like this. What's really sad is they agreed to extend and didn't keep their word. I wonder if you could negotiate any of the fees away?? I will pray for you, too.

Thank you for sharing that information, I will be on the look out for me and my clients. We had a similar situation where one reoccuring debit we had forgot about set off a chain of overdrafts. For the bank to pay 60 dollars worth of "bounced" debits (because they pay the biggest first, and we had 17 2.00-10.00 debits) they charged us almost 600 dollars. Lessons learned, but man do you just want to kick something! I feel your pain!

When I read your post , it made my heart hurt. I feel like others that I have met here on AR through our posts and our shared comments. I am so sorry that things had not been so easy but I fear if the truth were known there are numbers of people that are finding things associated with our current market, difficult today.

It is not so uncommon that being REALTORS , we often think we already know what is in the documents. I would say if that such a thing were there, it should have been called to you when you signed the loan documents. I did a post about this and that the consumer says , in the first place these documents are not given to you to read. Yes they are handed to you to sign but to read the documents and understand them it would take a lot longer at signing than would even allow for.

Hope things get better for you and your family soon. I am glad they featured your post becasue I found it.
Sincerely
William

Don't blame yourself. Although it's always important for the consumer to take control of his or her own undertaking with regard to any kind of financial document, lenders simply don't do a good job of highlighting some of the most important features of their loans. More to the point, many don't want to be forthcoming about what's in the fine print, leaving you to figure out what "penalties" you may incur for not understanding what you weren't told, but were expected to learn on your own.

Lenders could make it all easier to understand...unfortunately many 'choose' to not operate that way.

What a terrible thing to happen. I am so sorry. Go to your bank and ask them to defer the bank charges. If you've been a good customer for a long time (even with the mega banks) they will do that. I had that happen to me and they reversed all the charges because I had never made it a practice to overdraw my account. Try it!

Joan - thank you for sharing a PIECE of HUMBLE PIE that most wouldn't admit to. It's a good lesson personally as well as professionally. I hope your closing flies without any hesitation and you get caught up as well! This will remind me to READ...READ...and READ some more before just signing my name---my husband is the less emotional buyer who actually reads every line. I'm the "I'm so excited" party that I follow his line... NO MORE!! Thanks again and Good Luck!

Joan, first let me say that I am sorry to hear about your husband employment situation. Hopefully it will improve quickly. As far as the bank goes, it never ceases to amaze me with all the garbage they seem to be able to get away with. Here in Canada, the banks are very large Canadian multi-nationals that not only get away with this type of action but they also nickel and dime the average consumer with all their fees. Good post.

Joan, it may help to know that you have a cyber community pulling for you and your husband. The next issue is go to your loan officer and have him help you. The reason you contacted the bank in the first place was to make sure none of this happened! Your loan officer should be able to get the late fees handled too. I am sure you have done this. I hope the closing goes well and injects the needed funds. Good consumer alert, nice post.

Thanks for sharing this Joan. Perhaps it will help someone else. Sorry to hear of your situation...truly hope it improves soon for you.

Jeff

Joan, I hope everything works out for you and your family. You post is a good reminder, I think we are always so concerned about taking care of our clients and protecting them that we sometimes ignore our own personal finances. I know I've signed things without completely reading them even though I know better. Good luck.

Hi Joan,

Thank's for sharing your experience, i hope everything does work out to the best, everything usually does. I will definitely keep this in mind!

Regards,

as an experienced loan officer i have sat at closings looking at the 3 pound pack (closing docs) thinking there is no way that these people will know what they just signed when they're done.

then they are given a copy. like they will read and understand everything. however, if there is something that they don't like they have already signed the documents. oh well.

this is a serious system flaw and as far as i'm concerned has been this way forever. frankly despite 25+ years as an LO i don't have an answer as how to correct this.

I am so sorry for you. I think we all fail to read the fine print . Its like Jay said the stack of paper is so deep sometimes there is no way you could read it all.

Vicki

Hi Joan, I hate to hear that and I hope your situation improves quickly!

Thanks janeAnne..what's the saying about lemons and lemonade? Thanks for the support!

Joe...thanks for that! Your sharing was definately uplifting especially when I click on your name and see that smiling face!

Dawn...thanks for your good wishes!

Ryan...your prayers are needed and appreciated!

Bob& Carolyn...Sounds good to me! I have to ask...how are Ted and Alice? (sorry..couldn't resist)

Doreen ...this is all in the hands of the Banking Commission...cross your fingers!

Ohhh Lexa....kicking! I hadn't thought of that! Hummm

Thanks William...I know just from reading you that yoou are a caring person. Thanks...you could subscribe:>)

Thank you Susie...your husband has been doing it right!(you don't have to tell him I said that-LOL)

I agree with you Chris...they ALWAYS highlight the positive though!

Sybil...well in this case we didn'y overdraw the account...our payments had been made...THEN they stopped payments and took the money for the Bank!

Wayne...actually I think my husband may be getting a job with a mortgage broker! Ironic eh!

The scary part is that according to the Banking Commission...this is a Federal perk allowed to Banks, clear across the country!

Gary...thank you for the comments. Unfortunately "our Loan officer" position has been filled 4/5 times since we did this! We have no relaltionship with anyone there now. It has grown too large.

Jeff...Thanks. Me too!

Mitchell, Thanks...we are all just human when it comes right down to it!

Hi Bruno, Thanks for caring. And do stay vigilant!

Jay...I agree wholeheartedly (obviously). And this has to be brought to someones attention!

I'm planning on following through on this no matter the outcome!

Vicki...I think they count on that fact!

Okay -- I won't get on my soap box here -- you know because of my past life (attorney) I read every word of the contract with my firm - and the purchase and sales agreements, and the disclosure -- to my clients. I also am a big stickler for full disclosure and I have battled the powers that be with regard to disclosure in the RE industry-- and IMHO, we could improve a lot ourselves. The disclosures the banks give are a joke, however. The mortgage contracts are not written in plain English -- I am not sure you would have understood the actions the bank can take even if you had read the Mortgage -- I hope all goes well with the Banking commission -- however, as other have commented, this type of language is pretty standard across the US. Good luck!

Hi Joan..we do have a bit of hope because of a local situation going on...I can go into it if I see you Friday?

OUCH! Thank you for being open and honest in your post. In doing so, I know you'll be helping some other person to avoid the same fate. Keep the faith!

I'm tryin Marlene...I'm tryin!

Sorry to hear about this hopefully everything will work out for you and your husband. With all the fine print in documents I do not anyone has ever read all of the disclosures word for word. I guess next time you should get it in writing from the bank.

Hi Joan,

I hope everything works out for you.

Kandra Hamric
www.AssistantForRealEstate.com

Joan,

Very important point. Unfortunately you had to go through a real-life experience like that to really believe how crucial it is to read the contract. Any financial agreement. Fine print is notoriously dangerous. I don't read everything line by line, but do cover items that I consider critical. The only thing is, hopefully those are the ones that count.

Adrian...thanks for reading. I think it's time for a change in legislation!

Thank you Kandra...so do I

Esko...as Realtors we are taught to stress disclosure! It would appear that Banking should be required to do the same!

JUL

2007

Joan - I am just now catching up on posts and this one hits home. I have been in your situation and it is very disconcerting to have to dig out of a mess when a mess is what caused it all to begin with! I'll say a prayer for you and your husband. I'm sure all will work out.

Hi Carol...I think we've come up with a short term fix...hopefully it will buy us a little time!

Say a prayer!

JUL

2007

Hi Joan -

You got it! Multiple prayers, a shot of luck, lots of faith and a big shovel. That ought to do it!

Keep me posted - I'm pulling for ya!

Carol...The shovel...is that for my grave? LOL

Joan - the shovel is so you can bury the BS when it's over. LOL

As my mom always said ---- "The impossible takes a little longer." That's been my motto for more than 50 years since I heard her say it every time something went kaput! Besides - shovels make for great yard art!

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