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Total monthly payment. It's enough to make you cry.

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Services for Real Estate Pros with Mobile Notary Services

The borrower's wife was in tears.  I felt bad.  There was no way to console her.

I had a closing last night.  Everything was going smoothly.  That is, until the borrower discovered how much his total monthly payment would really be.  I stress 'really', because he was told that his monthly payment would be something different -- a much lower amount.  It's the only reason that he refinanced  with this particular lender.

total monthly payment - refinanceThere are several figures that can make up the total monthly payment -- 'Principal and Interest' being just one of them.  And sometimes, that is the only amount the borrowers expect to pay when they refinance.

What they don't realize (or perhaps are not told) is that they may also have to pay taxes, insurance, and perhaps mortgage insurance.  Add all of that to the principal and interest, and it's enough to bring anyone to tears.

 

 

I did what I could to save the closing.  There is only so much that the notary signing agent can do.  The borrower signed all of the documents. I will take them to FedEx today to be delivered.  In the meantime the borrower will call his loan officer today.  So although the borrower signed all of the documents, there is still a chance he will exercise his Right to Cancel.

 

Comments (12)

Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

I always tell them what to expect. I don't like surprises at a closing. I hate this for you because I know you get put into this position.

Dec 16, 2008 09:20 PM
Gayle Balaban
The Best Spot Realty/Waterfront Real Estate/Ooltewah Real E - Chattanooga, TN
E. TN Waterfront Real Estate

I have refused to use lenders thaat have a habit of surprising buyers at the table.  I want them prepared not stunned.

Dec 16, 2008 09:35 PM
Retired Notworking
Tallahassee, FL

Sad story and if the wife was in tears over the payment, it sounds like they should cancel. This is why it's so important to work with a reputable lender that makes sure their clients understand every detail, one that goes over the HUD with them prior to closing, something that a good lender will do.

Dec 16, 2008 09:38 PM
Leon Austin
Mobile Notary Services - Colorado Springs, CO
Colorado Springs Mobile Notary

Laura, thanks for doing your part to keep things honest.  As for me, it's part of the job -- being in the 'trenches'.

Gayle, keep refusing to use them.

Colleen, I think you're right.  It's very possible that they will cancel.

 

Dec 16, 2008 09:45 PM
Lisa Schlitz
Home Run Real Estate, Inc. - Wellington, FL
Realtor - Wellington, Florida Homes 561-214-3216

I've seen this too many times after working in a Title company. Now, as a Buyers' Agent, I prepare all my customers and ask for the GFE and prelim-HUD as soon as possible!

Dec 16, 2008 09:51 PM
Leon Austin
Mobile Notary Services - Colorado Springs, CO
Colorado Springs Mobile Notary

Lisa, that's a good idea. Speaking of the HUD, it was delivered to me about an hour before the closing.  The borrower had some issues with that too.

 

Dec 16, 2008 09:58 PM
TheMillsTeam YourSebringRealtors
Advantage Realty #1 - Sebring, FL
863-212-5441

Yep, that happened to us in 2005 when we bought our house (not knowing what the heck we were doing). In our case though, the monthly payment had gone up as well. After spending 3 hours at the closing table and calling the lending officer in CA to chew his butt, we ended up signing. We refied last summer. Luckily, we were still able to!

Dec 16, 2008 10:12 PM
Leon Austin
Mobile Notary Services - Colorado Springs, CO
Colorado Springs Mobile Notary

Andrea, thankfully you were able to get better terms.  Hopefully these borrowers will be able to get better terms too.

 

Dec 16, 2008 10:22 PM
Amy Salisbury
Leading Edge Properties - Charles Town, WV
West Virginia Realtor/Jefferson/Berkeley

What a heartbreaking story!  It burns me up that this is continuing to happen.  Unfortunately, homeowners are so desperate they will jump on any ship if the price is right and forget to ask all the pertinent questions.  Shame on that lender for not disclosing the total monthly payment prior to closing.  Why isn't this criminal???

Dec 16, 2008 10:38 PM
Leon Austin
Mobile Notary Services - Colorado Springs, CO
Colorado Springs Mobile Notary

Amy, you're right.  A lot of times the borrowers don't know which questions to ask. 

What it all comes down to is: 'Ask me no questions and I'll tell you no lies.'

 

 

Dec 16, 2008 10:48 PM
Diane Bell, Hilton Head Real Estate, Bluffton
Charter 1 Real Estate, Hilton Head, Bluffton, SC - Hilton Head Island, SC

Well, that's so difficult for the buyer to absorb.  Sounds like the lender didn't do a very good job informing her of what to expect.

Dec 16, 2008 10:55 PM
Leon Austin
Mobile Notary Services - Colorado Springs, CO
Colorado Springs Mobile Notary

Diane, the lender actually did tell them what their 'total' monthly payment would be.  He just failed to add a couple of figures to that amount.

 

Dec 16, 2008 11:03 PM