I began dealing with Marshall Parker of LSI Mortgage Plus (Duluth, GA) after submitting my information to the LendingTree website. I expressed interest in refinancing my home and Mr. Parker and I were in touch shortly thereafter. He explained he has been in the industry for 17-18 years and knows it very well. He offered competitive rates and promised a very speedy closing (same story others at LSI have given before ripping other folks off, based on the reports I've since found online). My fault for not researching them thoroughly, but I naively thought I could trust lenders who work on LendingTree referrals.
In my unique case, I was looking to refinance a home I'd been in less than 3 years since completing a short-sale on my last house. Mr. Parker explained that we would need to do an FHA loan since a conventional loan is not possible in that situation. I verbally agreed to the new terms and Mr. Parker ordered the appraisal of my house... from an "independent" appraisal company called LSI Appraisal. The appraisal was completed, my credit card was charged $445.00 and I was led to believe by Mr. Parker that we were on the verge of wrapping up the loan details.
It was around this time that Mr. Parker stopped responding to emails. Previously he had been extremely responsive. He had also advised me to not make my upcoming mortgage payment since we'd be closing soon. As we got closer to the late-fee date from my current lender, I went ahead and made the payment. In the couple of interactions we had, he explained that he just needed to work with the underwriting group, and then one time he asked for more details on the short-sale.
I finally heard from Mr. Parker and he confirmed what I suspected, that his underwriting department wouldn't approve the loan. I had no idea why, mind you, but based on how he had been stringing me along I could tell something was very wrong. When we finally spoke he explained that the FHA will not approve a loan of greater than 80% LTV (loan to value) if the mortgagee has a short-sale less than 3 years prior. Where was this info previously?? Mr. Parker, who has spent so many years in the industry, strung me along, cost me $445 and then left me hanging.
Mr. Parker suggested that I wait until I reach the 3-year mark (time since my short-sale) and then he would write the loan for me and he would cover the new appraisal cost out of his own pocket (he told me this verbally). I followed up with him via email to let him know I am not happy with this arrangement (since I have no reason to trust him). Plus, as I told him, he may not have a competitive rate and I should still have the freedom to choose any lender I wish. I have since contacted him several more times via email as well as contacted the company through their website and I have not received a response. He has also not answered my calls.
My credit card company has offered no protection since LSI Appraisal claims to be an unaffiliated company (no relation to LSI Mortgage Plus). Therefore, I am out $445 due to Marshall Parker and his company, LSI Mortgage Plus. He should have informed me up front that the FHA has very specific restrictions on new loans to mortgagees with a short-sale history, and his neglect to research this and properly serve my interests cost me hundreds of dollars. I believe some restitution is in order.