ED Magedson – Founder
New Penn Financial6250 Old Dobbin Lane Columbia, Maryland USA
New Penn Financial Mortgage Broker Columbia Maryland
I am filing a complaint against New Penn Financial because they serviced my 203K rehabilitation loan fraudulently and now my house is scheduled to be condemned. New Penn’s representative Michael Maggio lied about my escrow account. After closing, he informed me that my mortgage could not be built into my escrow while the house was being rehabilitated, this put me in a position where I had to pay rent and mortgage. I then filed a complaint with the Better Business Bureau. Once the BBB informed New Penn of the complaint they decided to sell the loan.
The loan was sold 2 weeks after closing, but in an effort to rectify the complaint, Carl Lutz expedited the initial draw in the amount of $28,000.00 without county permits being pulled. After the initial draw the loan was sold to Bank of America where they continued to disperse fund to the contractor without permits. During his attempt to save New Penn’s reputation he forgot to get copies of the county permits and drawings needed to start the rehabilitation. So the contractor Ronald Hobby (appointed by HUD consultant) began the illegal rehabilitation of my home without permission from Charles County, DLLR.
Additionally, the HUD Consultant Sam Smargissi (appointed by New Penn) allow the contractor Ronald Hobby to perform $91,000 in rehabilitation without a single permit being submitted knowing that 4 permits were needed to complete the rehabilitation legally. After it was discovered that permits were required Bank of America who now services my loan contacted New Penn because HUD has threatened to indemnify the loan, New Penn did not respond. HUD took the necessary steps to remove Samuel Smargissi from the list of approved 203K inspectors, but New Penn has made no attempts to rectify the problem.
New Penn Financial took advantage of me as a first time home buyer, they lied about my escrow, they forced me to accept Sam Smargissi as my 203K HUD consultant after I notified Mike of Sam's scam reports, and they helped the inspector and contractor rip my family off.
My dream home has become a nightmare filled with mold, sewer backup, leaking pipes, faulty electricity, a leaking roof, broke windows, a used HVAC system and endless sleepless night for my wife and I. Charles County officials has been patient with my family of 10, but legal actions against my family are inevitable because they have to abide by the law. What began as a $113,000 rehabilitation now requires $140,000 to correct the problems created by a group of money hungry vultures. My family is in no position to take out an additional $140,000 mortgage to correct what should have been done properly and legally the first time, so we will leave out dream home turn nightmare and begin to rebuild our lives.
I do not expect New Penn to accept its part in this since it's been 2 years, but my goal is to warn other home owners about New Penn's lack of care and integrity.
This report was posted on Ripoff Report on 10/01/2013 09:23 AM and is a permanent record located here: http://www.ripoffreport.com/reports/new-penn-financial/columbia-maryland-21044/new-penn-financial-mortgage-broker-columbia-maryland-1088589. 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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