Complaints

• Initial Complaint

  01/19/2023

  Complaint Type:

  Order Issues

  Status:

  Resolved

  More info

  We purchased a property with the 9.9 percent of interest rate that was financed for 5 years by (flash raise funding) the two new owners that were signing the owners do not speak or read english. This December of 2022 we received an email stating that I had to pay a fee of $1,920 on the 9th month after the purchase which would be this February. After that 9th month fee every other 6th month they will be requiring for me to pay an additional fee for the same amount until the total balance is payed. The owners signed the contract after only being told that they would only have a five year finance with the 9.9 percent interest rate, they were not told about the additional penalty of the 9th month and every other 6th month penalty ( the penalties are charged even tho the clients have not missed or gave a late payment) The clients have not missed or given a late payment. They signed in a ****** company believing in everything that they were being told expecting to not have information being left out about what they were signing. The owners keep stating that they were never told about the additional penalty charge and that if they had been made aware they would have never signed it due to the interest rate being as high as it was. One of the owners has called the office in ******* to see if they can waive the penalty giving her enough time to find a different company to refinance with, the company in ******* has not come to an agreement with one of the owners nor wishes to waive the penalties and honor just the 5 year interest rate without penalties they only agreed to charge the penalties at the very end once the total has been payed which the owners did not agree with since she was never told about the penalties to begin with.

  Business response

  01/24/2023

  To Whom It May ******************* loan was presented to a third party broker who originated the loan.  We had limited correspondence with the borrower prior to the closing of the loan and did not negotiate or offer loan terms.  We were merely the lender that table funded the loan.  We provided the broker two options to present.  One was a 9 month option at ****% and the second option was *****% and a 5 year balloon loan.  We were told the borrower chose the short term option and had the attorney prepare loan documents based on that option.  The promissory note for this loan clearly states that there are extension fees owed after the 9 month **** as does the deal sheet that was presented by the broker to the borrower if the ****% lower rate was chosen.  Within a few days after receiving the phone call from the borrower claiming the confusion on the rate and term, we reached out immediately to the broker to clarify that we could offer a modification to the loan raising the interest rate to *****% and eliminating the extension fees.  The broker left messages for the borrowers and did not receive an immediate call back.  As of 1.19.23 we were told by the broker that this would be a viable solution and are working through the process to modify the loan.  This is a situation of a miscommunication between the mortage broker, borrower and lender (us) where the borrower signed a loan that they did not understand.  We have been in the lending business lending for 14 years and this is the first such complaint we have encountered.  It will hopefully be resolved within 2 weeks of having been brought to our attention.

   

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