In short: My wife and I met with NV Homes during the month of March 2007 to purchase a single family home. We met with the sales representative to discuss the price, the options. closing costs assistance, incentives, etc. After we were provided a Good Faith Estimate of the approx. monthly mortgage payment and the type of financing program (30-year fixed -100% financing). The sales rep. stated the interest rate at that time was a little onthe high side. We decided to move forward with purchasing the home with the pricing he provided.
We provided him with the authorizing to run our credit because our scores were low 800's and we knew our credits scores were very good and our debt ratios were good.. The sales rep. forward an email from NVR Mortgage stating that were approved for 100% financing as long as we kept the back ratio below 50% which may change to 45% in the next few months.
During a meeting with NVR's loan officer to continue the process of purchasing the home, we realized her numbers were different from the ones presented by the sales represented. We questioned the desparity. She stated the rates we starting to increase, but do not be alarmed because thye fluctuate. We asked her what we could do to ensure we remained at the agreed upon financial terms with the sales rep. She recommended asking the builder for additional concessions, buying down points, and paying half trafer taxes.
Shortly after we left the meeting, we immediately revisited the sales rep. to discuss reducing price the home further to based on our converation with the NVR loan officer. We spent many Saturday afternoons in the sales rep office adding and deleting options within the home to make it even more affordable. We completed Construction Request and Construction Changes forms, discussed additional concessions that could be given by the home builder, and other financing alternatives.
Starting from the month of March 2007 to May 23, 2007, we finally agreed to spepcifc financial conditions based on 100% financing and receiving a certain amount of our deposit back at closing. The sales rep. stated he would forward all documentation to NVR Mortgage to update their records.
Shortly after our last meeting with the sales rep. I sent the NVR loan officer an email informing her of the last meeting with the sales rep. and asked if she received the changes so she could update her records.
Every two weeks I would send an email to the NVR loan officer how the rates were looking to ensure the rates were in alignment with their Good Faith Esitmate. She did not respond. I tried to contact her several times because I knew my settlement date scheduled for the month of October 2007 was approaching very soon. I became frustrated because I felt after the signatures were given the customer service went out the door.
During the month of August, I revisted the sales rep. office because there was a voice message left on my cell phone from the loan officer stating with the recent changes in the mortgage industry (sub-prime lender turmoil), that the rates have jumped to 8% on Jumbo loans and the estimated monthly mortgage had jumped by $1,500 more a month. I was irrate and totld the sale rep. I could not afford the home at this point. I told him I tried contacting the loan officer, but she was slow to call me back. The sales rep. gave me the names of two alternative lenders that I could speak with to discuss obtaining financing. I suggested he contact the loan or his boss to discuss this matter immediately.
Towards the end of August the loan officer called stating the loan programs had changed but she was seeking a 95% loan program now requiring 5% deposit. I immediately contacted her to discuss obtaining the 5%, and the affordability of the home at this point moving forward. I told her I was able to locate two lenders (Wells Fargo and Amerisave) who could still provide 100% financing but she needed to contact immediately to discuss. She never did!!!
After repeatedly sending emails, she finally stated if I used an outside lender, we would forfeit the incentives provided by the HomeBuilder. the HomeBuilder provides incentives for customers who uses their mortgage company, title company, etc. Keep all the money in house. Even though the customer may find a better loan program through an alternate lender.
After so many attempts were made to commuicate with the mortgage officer, I contacted the Division Sales Manager, who I was told earlier knew about my situation, however, I learned he was not aware. The sales manager stated he would speak with the loan officer to see what he could do. Well, I still did not receive a call back and the settlement date was fastly approaching.
At this point, my wife and I was frustrated and annoyed at this whole ordeal. We did not weant the home anymore. I contacted the Corporate Headquarter in an attempt to speak with the President Paul Seville. I was told to contact the Division Manager to resolve this issue. Meanwhile, I received an email from the loan officer stating the monthly mortage would be $500.00 more a month than agreed and required to provide a deposit of 5% which she stated the market and the investors are dictating. I asked her where was the 100% programs she spoke about?, Why didn't she inform me the programs were going away? Where did she expect me to obtain the 5% downpayment?
I was scheduled to conduct my final walk through on October 16th and nothing had been resolved.
At this time, the sales manager referred us to a new NVR loan officer who was going to try to resolve the situation. However, the financial proposal provided was the worst than the other. I told them this was unacceptable and unaffordable. They had switched the numbers around, and stated we needed to put additional money down and getting nothing back at closing.
My wife and I had enough. We contacted a lawyer to assist in mediating this situation to bring resolution or request the deposit back since the home was unaffordable based on the new financial conditions being proposed by NVR Mortgage.
We presented our lawyer with a binder of letters, emails, faxes, and paperwork documentating our first and every meeting with NV Homes. Lawyer was very impressed we kept a dairy of all communications that transpired. He contacted the Division Manager hoping to resolve this matter rather swiftly but the Division Manager did not seem willing to resolve this matter or return the deposit. He stated in an email to my lawyer:
"Unfortunately, there is no entitlement on your clients' part to unilaterally decide what the value of the house should be. The contract they entered into was not contingent on a specific type of financing.
Due to the lack of good faith demonstrated by their lack of effort to get the updated documents required by NVRMortgage to finish processing of their loan application, we will have no choice but to send a default letter to the Pringles. The default letter will be sent registered mail today, and will illustrate a two week cure period within which your clients can provide the necessary documentation and settle. If the documentation is not received, and your clients do not demonstrate intention to close on the purchase, we will retain the full amount of their deposit and re-market the home.
Additionally, we will rely on all rights and remedies as illustrated in paragraph 12(a) of the contract which states the purchasing on the home is not contingent upon the homebuilder obtaining financing for the customer".
My wife and I through the hired lawyer commuicated our willingness to move forward with the process, but new financing terms and conditions were unaffordable. We were not going to provide NV Mortgage with our financial documentation until there was an agreement on the type of financing program obtained, the monthly mortgage, and the money returned at closing.
Moving forward, we did not attend the settlement as schedule as a result of the stubbornness of the division manager. We kept receiving proposals that was in the favor of the builder. They started to insult our intelligence by switching numbers around, stating they were giving us additional concessions, but at the same time asking for us to put more money down.
I contact the Office of Attorney General in the state of Maryland, contacted Congressman Cummings Office, local newspaper columnist, and spoken with other credible lenders and laywers about the in-house lending practices of this Mortgage Company. Everyone stated litigiation seems to be the only alternative, if the Home Builder is not willing to return the deposit.
During the month of December (Almost March again), we received a call from a representtive from Wells Fargo who stated he would be working with NVR Mortgage to resolve this matter. He was their last resort. After speaking with this new lender about our financial concerns and the final contract conditions agreed upon during the month of May. He quickly started reiterating the same information the loan officer had said a few months ago about the changesin the market. I told him I truly understand however we signed an agreement in May, but the Division Manager was referring to a document initially signed in the month of April which should have been changed by the sales rep and loan officer at that time.
The Wells Fargo rep. provided to proposals which we disagreed with immediately becuase his proposals were worst than NVRs. My wife and I contacted NVR Mortgage to discuss our concerns and recommended they work with this rep. and inform him of the loan programs they had previously given us.
After going back and forth, the Wells fargo rep. and the NVR loan officer cam back with an even worst proposal stating we needed to placing 10% down oppose to 5% and pay $16K at closing. They said the market was getting worst day-by-day. Luckily, I had a reputable lender who works at a subsidairy of Wells Fargo review the proposal. He stated they were trying to take me to the cleaners. He admitted the market had changed and continues to change everyday, but 5% downpayments laons were not difficult to find. I asked him if he could provide me with a proposal since he is apart of Wells Fargo.
After receiving his proposal, I sen t it to the NVR Loan officer to ask for consideration in using his proposal. I did not receive a respond back, but the Wells Fargo (NVR rep.) called me back stating he could not match the proposal I sent to NVR. I stated you guys works for the say company, why not? Then my wife and I figured it out. He had to provide NVR with a kick-back for doing business with them as well as make a profit for himself. i confirm this with the reputable lender I knew. I made NVR aware that they were not working in the best interest to make the home affordable nor are they trying to resolve this matter. As long as they have my deposit, they could care less.
I spoke with the Division Manager in one last good faith attempt, and he said they working on one last effort, but there were no guarantees on the outcome. Well, the house has been built and completed since October 2007, but reamins empty due to lack of commitment, non-communication, non-responsiveness, people not willing to accept the responsibility for thier actions, and most importantly greed!!!!
I am willing to lose the money fighting for it, than letting the homebuilder bully me into accepting their one-side financial proposal so I can become a foreclosure statistic. The Governor of Maryland, Congress Representatives, Senators, and Attorney General should focus their attention on the in-house practices of homebuilders. The reform should began with the homebuilders, realtors, and lenders. It all about how much money can they profit-- no matter how many people lose their homes!!!