Refinancing My Home - Final Update

As I said in my first update on this subject (Refinancing My Home - Update) I would have an update if Reliance First Capital would refund my $425. for the appraisal I spent due to what I perceive as negligence on their part. I am happy to report that Reliance First Capital saw my point.  They refunded my money as of January 26, 2013.  Now, they are not referring to this as a refund since they steadfastly maintain that the appraisal company had nothing to do with their company.  I'll accept that to a certain degree.  It is true the appraisal company is not a part of Reliance First Capital (RFC).  However, since I was never informed by the refinancing specialist that this $425 would not be refunded (or reimbursed as RFC wants it to be referred to) if the refinancing of my home loan did not go through for any reason, I felt I deserved this money back in my bank account.  As I asked the VP of RFC, how many other people have lost money due to not being informed of this loss of funds if their loan is not approved for any reason?  I never did get a good answer to that.  I suspect I never will.  I was led to believe that the appraisal was a mere formality.  However, after being told I had $1700 worth of repairs needed before the loan would be approved, I was put in a sort of holding pattern.

Communication was very poor with RFC.  In the maze of all the paperwork that I had to do for this loan, there was a small passage that revealed I would lose that money if, for any reason, the loan did not reach a final process..  But, I felt this is something I should have been told, up front, the moment the refinancing specialist said I needed to have this appraisal. That was not done.   The VP told me in order to prove the company operated in good faith, they were going to reimburse this money to me.  Let's be honest here; no type of company is going to "reimburse" money to a customer unless they think they could possibly be at fault or liable.  So, while I am appreciative of this money being refunded...eh, I mean reimbursed to me, I do not believe RFC is doing this out of the goodness of their heart.  There is more here than meets the eye.  I have my suspicions why I am getting this money back.  But, I think I will just keep them to myself for the present time. I will say that it is strange they were willing to hold up this loan since it is a VA loan.  A VA loan is a federally guaranteed loan.  No matter what happens, the lender is guaranteed their money back.  I was given an answer that just confused me.  I tend to think that was intentional now.

So, do I think you should do business with Reliance First Capital (this lender is affiliated with Lending Tree) if you are seeking a home loan or refinancing of your present home loan?  The only way I can truthfully answer this is both yes and no.  Yes, because they did realize I was given bad customer service (as the RFC VP admitted to me over the phone).  I was not informed, verbally, I could lose this $425 if the loan did not go through for any reason.  Yes, I should have noticed that in the paperwork for the refinancing.  I admit that is my fault.  But, please consider the amount of paperwork involved with this process and you'll understand what I mean how easy it was to overlook it.  No, because, as stated, I got poor customer service.  I should have been verbally warned I could lose this money.  What if, for example, the appraiser had said the loan was more than the property was worth?  I would have lost that $425 appraisal fee for that also.  What added to my confusion is that the refinancing specialist stated, at least twice, that the $1700 needed for the repairs would not be any problem for the continued process of the refinancing of my home loan.  I thought I would be closing in a matter of days.  When I was told of the need for repairs, I lost all contact from this refinancing specialist.  So, do I feel justified in demanding this money back?  Yes! Absolutely YES! Do not let lenders or mortgage brokers bully you if you are seeking a home loan or refinancing.  You have rights if you just make it known.  What am I going to do now?  I'm not sure. Right now, I think I will just wait to see if interest rates come down even more.


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