- Report: #949260
Report - Rebuttal - Arbitrate
Complaint Review: LSI Mortgage Plus
LSI Mortgage PlusDulith, Georgia United States of America
LSI Mortgage Plus Mortgage Refinance Bait and Switch Dulith, Georgia
*Author of original report: Response to "Common Sense"
*Consumer Comment: A Few Thoughts
*Consumer Comment: common sense
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When I saw the higher rate on the Final Hud statement, I called Chris Piatchek and asked him about it. He assured me once again that I was locked at 3.625% and that the 4.5% on the paperwork must be a mistake. However, shortly before closing Chris changed his tune and said he was having trouble getting any banks to take the loan. I knew that there was no possible reason that the banks should be balking at the loan. My credit rating is beyond excellent and the loan was for $250,000 LESS than the appraised value of the house! So I knew the appraisal being too low could not be an excuse to raise the rate. But WAIT! LSI managed to come up with a reason why they could not give me the agreed-upon rate: Not enough comparable sales in my neighborhood in the last 6 months, so the appraisal wassuspect. HA! I live in a subdivision that has 1100 (yes, count em 1100!) houses all pretty similar. So that is a completely bogus excuse to raise the rate almost a whole percent. And ESPECIALLY when the appraised value was almost $600,000 and the value of the loan was under $350,000!
And if you have read anything about LSI, you know the ending to this story: All the other banks (BOA, etc.) turned down this risky (HA!) loan and good old Flagstar bank was the only one that would take the loan, but of course at 4.5%, not 3.625%. Because it was too late for me to make other arrangements, I had to go ahead and refinance at 4.5%. Chris Piatchek gave me a rebate of sorts by covering the difference in interest payments between 4.5% and 3.625% for the first FOUR months (until I would hypothetically be able to refinance again). But that hardly makes up for all the expense of a second refinance and for the huge difference in mortgage payments after the four months is up.
Six months later, I was able to refinance the same property with a real bank (not a mortgage broker like LSI) and had no problems at all and got a rate of 3.375%. So, you can do like I did refinance with LSI and then have to do it over 6 months later and pay all the closing costs twice. Or you can skip the LSI fiasco and go directly to a reputable bank or mortgage broker.
This report was posted on Ripoff Report on 10/01/2012 02:54 PM and is a permanent record located here: http://www.ripoffreport.com/r/LSI-Mortgage-Plus/Dulith-Georgia-30097/LSI-Mortgage-Plus-Mortgage-Refinance-Bait-and-Switch-Dulith-Georgia-949260. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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