Mark Resident Posted August 12, 2009 Share Posted August 12, 2009 My refinance nightmare...I tried to get my condo refinanced. The appraisal came in $50,000 below my purchase price a year ago. So, ok, I know everyone is having trouble with appraisals so I decide to just go along with it and pay down my original mortgage so I could get my rate lowered from 6.5% to 4.75%. Then, after 4 months of waiting they turned me down because my condo association had a special assessment last year and a high receivable associated with it. Well, now most of the receivable is gone and the so called special assessment happened because of the hurricane, which, I am guessing, probably happened to everybody in Houston that owns a condo.So my question is, is this an appropriate and good faith business practice? The fact they are relying on outdated information that is not even relevent anymore to conclude my HOA is insolvent, when it never was in the first place, seems rather arbitrary, like they were just trying to find some reason to turn me down. I live at the Mark and the HOA is well managed. I'm a CPA so I should have some clue about that.The last thing the loan officer said was that it is very hard to get a condo loan right now. My question is, why didn't they tell me that before I gave them $500 for an application fee. And then there is the appraisal. Are they telling me that my place is worth less than the appraised amount?Bottom line, should I be able to get my application fee back? Anybody know? I sent an email to the lending agent requesting it but have not heard back yet.I would appreciate some feedback from folks who know about this stuff...Thanks Link to comment Share on other sites More sharing options...
musicman Posted August 12, 2009 Share Posted August 12, 2009 I don't think you're alone. I friend tried to get a refinance done for a condo and was told that based on information provided by the HOA (didn't have separate fund for maintenance) they were not willing to refinance.I don't think he lost out on any fees though. Link to comment Share on other sites More sharing options...
Yankee_in_TX Posted August 12, 2009 Share Posted August 12, 2009 Unfortunately, it doesn't sound like they have done anything illegal. They processed your application, got an appraisal, and analyzed your (and the condo's) financial picture.You would have a tough time ever proving that up front they knew they were not going to approve the refi or that they lied to you about anything.I would stay polite and escalate in their company to try and at least get a partial refund. Link to comment Share on other sites More sharing options...
TheNiche Posted August 13, 2009 Share Posted August 13, 2009 My refinance nightmare...I tried to get my condo refinanced. The appraisal came in $50,000 below my purchase price a year ago. So, ok, I know everyone is having trouble with appraisals so I decide to just go along with it and pay down my original mortgage so I could get my rate lowered from 6.5% to 4.75%. Then, after 4 months of waiting they turned me down because my condo association had a special assessment last year and a high receivable associated with it. Well, now most of the receivable is gone and the so called special assessment happened because of the hurricane, which, I am guessing, probably happened to everybody in Houston that owns a condo.So my question is, is this an appropriate and good faith business practice? The fact they are relying on outdated information that is not even relevent anymore to conclude my HOA is insolvent, when it never was in the first place, seems rather arbitrary, like they were just trying to find some reason to turn me down. I live at the Mark and the HOA is well managed. I'm a CPA so I should have some clue about that.The last thing the loan officer said was that it is very hard to get a condo loan right now. My question is, why didn't they tell me that before I gave them $500 for an application fee. And then there is the appraisal. Are they telling me that my place is worth less than the appraised amount?Bottom line, should I be able to get my application fee back? Anybody know? I sent an email to the lending agent requesting it but have not heard back yet.I would appreciate some feedback from folks who know about this stuff...ThanksI'm trying to sell a condo, and my fingers are crossed that I don't encounter problems similar to your own but with respect to a prospective buyer...though I probably will. What they're telling you is that although your place is worth the appraised amount, they are unable to find an entity interested in lending on real estate product of your specifications.Try complaining and then getting a lawyer to write a threatening letter. Then promptly complain again. See what that gets you. Otherwise, don't pursue the matter further. They're in the right on this one. Link to comment Share on other sites More sharing options...
BryanS Posted August 13, 2009 Share Posted August 13, 2009 I'm trying to sell a condo, and my fingers are crossed that I don't encounter problems similar to your own but with respect to a prospective buyer...though I probably will. What they're telling you is that although your place is worth the appraised amount, they are unable to find an entity interested in lending on real estate product of your specifications.Try complaining and then getting a lawyer to write a threatening letter. Then promptly complain again. See what that gets you. Otherwise, don't pursue the matter further. They're in the right on this one.So if "they're in the right" ... why is a threatening letter and a lawyer even necessary? Why should one need to take such action in an effort to correct something does not need to be corrected? Link to comment Share on other sites More sharing options...
20thStDad Posted August 13, 2009 Share Posted August 13, 2009 So if "they're in the right" ... why is a threatening letter and a lawyer even necessary? Why should one need to take such action in an effort to correct something does not need to be corrected?I have bitched and whined to get a refund I didn't technically deserve before. It's good fun, sometimes you just feel like stirring things up, especially if you're pissed off. Link to comment Share on other sites More sharing options...
Subdude Posted August 13, 2009 Share Posted August 13, 2009 I have bitched and whined to get a refund I didn't technically deserve before. It's good fun, sometimes you just feel like stirring things up, especially if you're pissed off.Precisely. There's rarely much downside. I refinanced mine about a year ago. Luckily that was before the hurricane (and HOA assessment) and the worst of the financial crisis, but even then the value had dropped a good bit. I think I kind of got in just under the wire. Link to comment Share on other sites More sharing options...
TheNiche Posted August 14, 2009 Share Posted August 14, 2009 So if "they're in the right" ... why is a threatening letter and a lawyer even necessary? Why should one need to take such action in an effort to correct something does not need to be corrected?In a negotiation with entirely distributive outcomes, even when the substance of a threat is not credible, the prospect of a lawsuit is always credible. Lawsuits can be filed regardless of whether they have any realistic chance of success and cause needless grief for both parties, so the credible threat that comes with one must be countered.The customer's motive is to amorally recover some costs from a firm with which you are unlikely to ever have subsequent dealings....might I add that for someone who so wholeheartedly rejects Christianity, you sure do hold fast to the Judeo-Christian moral compass. Link to comment Share on other sites More sharing options...
Mark Resident Posted September 3, 2009 Author Share Posted September 3, 2009 They ended up giving me the 150 application fee but not the 350 property appraisal. If you own and want to refinance or you are trying to buy a condo DO NOT, I repeat, DO NOT use COMPASS BANK because they WILL NOT fund your loan but by golly they will take your money applying for the loan and keep it!!! Link to comment Share on other sites More sharing options...
thect Posted October 2, 2009 Share Posted October 2, 2009 The banks are still being extremely difficult to deal with. And they are treating condos worse than single family homes. I would try different banks and see if they will accept your appraisal. As bad as they are with condos they are worse with commercial real estate. They basically have almost no interest in refinancing commercial right now. Link to comment Share on other sites More sharing options...
jb4647 Posted November 15, 2009 Share Posted November 15, 2009 They ended up giving me the 150 application fee but not the 350 property appraisal. If you own and want to refinance or you are trying to buy a condo DO NOT, I repeat, DO NOT use COMPASS BANK because they WILL NOT fund your loan but by golly they will take your money applying for the loan and keep it!!!I had the same issue with Bank of America (MY OWN BANK for the past 15 years!!!) when I bought my 1st condo in April 2007. They sat on the loan for two months until the week of closing then turned it down because our condo association was being suied (completly baseless BTW and thrown out soon after). Luckilly my realter was able to secure a new loan but at 6.25% rather than the 6% that I had locked in with BOA. On a related note, has any legislator ever put forth a bill to allow association fees to be tax deductable? I see these akin to property taxes and mortage interst payments which ARE deductable. I would think such deduction would help to spur the condo market. Link to comment Share on other sites More sharing options...
BryanS Posted November 15, 2009 Share Posted November 15, 2009 In a negotiation with entirely distributive outcomes, even when the substance of a threat is not credible, the prospect of a lawsuit is always credible. Lawsuits can be filed regardless of whether they have any realistic chance of success and cause needless grief for both parties, so the credible threat that comes with one must be countered.The customer's motive is to amorally recover some costs from a firm with which you are unlikely to ever have subsequent dealings....might I add that for someone who so wholeheartedly rejects Christianity, you sure do hold fast to the Judeo-Christian moral compass.Just saw this... actually I don't... but anyway...People shouldn't gripe about not getting their money back for loans that do not fund. Take example, the appraiser. That person went out and performed work. Non-refundable work. If the place doesn't appraise, everyone involved in the deal should run for cover. Some of the best deals... are those that never happen. A $350 "loss" now is better than a $35,000 loss later. Link to comment Share on other sites More sharing options...
RedScare Posted November 15, 2009 Share Posted November 15, 2009 On a related note, has any legislator ever put forth a bill to allow association fees to be tax deductable? I see these akin to property taxes and mortage interst payments which ARE deductable. I would think such deduction would help to spur the condo market.Recalling my days on a condo owners board, the coa fees covered maintanance, common area power, cable TV, water and sewer, security, and insurance. None of these items are tax deductible on my single family home. I do not see them as 'akin' to mortgage interest or property taxes, other than the fact that you make a monthly payment for condo fees just as you do a mortgage payment. While I hated paying a condo fee, I enjoyed having no water bill, cable bill, or lawn maint. bill, and drastically lower insurance bill. I also enjoyed having a 'free' pool, something my single family home does not have. Link to comment Share on other sites More sharing options...
lovett19 Posted November 17, 2009 Share Posted November 17, 2009 I refinanced my condo last month with Bank of America. I knocked my interest rate down from 6.625% to 5%. I asked them what qualified me, while so many of my friends are having a tough time refinancing their condos. BoA told me it was 2 things: my credit score, and the fact that I had 40% equity. I bought my condo (in Montrose) in 2002, and according to the appraisal, it has only appreciated $15k. But in today's market, I consider myself lucky that it has appreciated at all! Mark Resident, I'll make a note about Compass Bank! In the meantime, ya might wanna give Bank of America a shot. Good luck! Link to comment Share on other sites More sharing options...
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