• Report: #1040210
Complaint Review:

USDA Rural Development

  • Submitted: Tue, April 02, 2013
  • Updated: Tue, April 02, 2013

  • Reported By: Francis — tangent Oregon
USDA Rural Development
P.O Box 66818 St Louis, Missouri Internet United States of America

USDA Rural Development everyone We have had nothing but problems Internet

*Consumer Comment: Our Frustrating Loan Process Experience with USDA

*Consumer Comment: USDA Customer Service Agent VERY Hateful & Condescending

*Consumer Comment: USDA Rural Developement

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 My wife had gotten a loan from the USDA back in 2010, during the process they have done nothing but stick it to us, and I have had enough of the abusive power this government thinks it has. Here it is,     We Have lived in the house before this one and it had seen better days, so I thought I would file for a loan to purchase a new home, and boy were we suckers. We were had and it just keeps getting worse.    

    Ever since we went through the process with the USDa we were lied to, and forced to take what they offered or we got nothing. This is where our troubles began. My wife went thru the paper process and found with her income and mine, she was eligiable for $160.000 loan. Hey pretty nice except this was not the case.

    We arrived at the USDA's main office and met a lady who seemed to know what she was doing, then as it turned out, we were told by this woman that we had to find an architect to draw up building plans for our home, so we got a number from a contractor friend of mine, and had him draw us up a modest floor plan of about 900 S.F. but he said all he could do was 1000S.F. homes, so we agreed to it, then he told us it would cost us 1000 dollars to draw the plans. So the wife and I talked it over and thought what if we contacted the USDA to see if they would incorperate this money into our loan, well this woman told my wife no they would not do that, she told my wife why should we, I know how much money you have in the bank. use it. so in order to have the plans drawn up we took what was left of our savings to have the man draw us some plans.

    All was going fine until we hit a stump, we didnt know what to do after we got the plans, and the USDA didnt tell us what we had to do as well. So I decided to get on the phone and find someone who knew what they were doing, I did and this happened to be the man in charge ( boss ) at first she was kind and sweet and acted like she gave a d**n, but what a face she put on.

    We explained to her what was going on with our case, and she asked us if we received a USDA welcome packet, that explains the entire process.  I told her no, we had'nt received anything from anyone, and boy she acted like a sin, she told me then there will be hell to pay for that, because these people in that office no better. Well I guess they didn't.

    she told me she would get in touch with me when she had a word with the man in charge of that office.

    Well the end of the day came and this woman, name not be mentioned, but she called my wife and told my wife that there was a problem with her applcation. I said what, and she told me that this woman said that my wifes credit was not good at all. I said that was a crock. So I called this woman to express my angre on what she was pulling.

    She said to me i'm not trying to pull anything, she said that my wifes credit history came up a bit short and wanted to know if there was something we didnt provide to them, a credit service co. was to have had that removed from her credit file.  As it goes, we provided them with the correct info. to satisfy the USDA.

    Now this is where I didn't understand what happened. But all of a sudden the USDA Lost their funding, according to the Office manager, so we were put on hold for a month or so, and then we were picked back up but time ran out on the application so we had to do it all over again. document after document. What really ticked me off was, we made copies of a couple hundred documents as if we were made of money.

    We had secured our loan again, then we were called into the USDA because of a problem, so we went to the appointment and met with the woman, who told us, that I was not going to be on the loan application. and we asked why. they said my credit was not that good, which I understand completely. And she began to tell my wife it would be best for her to go it alone. So she agreed.

    iI had gotten tired of what the USDA was doing to us, so I went to our Governor of the state, who's aid just couldnt get anything I told him through his thick head, how do these people get these jobs. I figured he was fresh out of kindergarden, and after giving him the names and numbers of everyone who was sticking it to my wife, he thought I was the nut. And you know what, I have documented proof, as to all the facts. And what was about to transpire.

    SO I did some fancy research and found some people in Washington, D.C. who maybe could stear me in the right direction, then all of a sudden, I hit on The USDA investagatory agency, the ones who investagate abuse of Government officials, who thought they could do what they wanted when they wanted, well folks they can and not a d**n thing we can do about it.

    You see not only did we provide this team with copies of every document we had but somewhere along the line they lost them all. Now how the hell did that happen. Life in these United States can realy suck. now wait until I finish this true account of the abuse I had to endure as well as my wife. And for what we got screwed by our government, big time.

    We found out later on during the process with the USDA, that they decided to cut my wifes loan in half, just one day we were called into the office of the USDA to find that the manager had gone through our paper work and found as he put it, my wifes credit was not all that good of shape, I told this guy he was an a*s, I cleaned my wifes credit up, it was so spotless you could eat off the floor of the reporting agency. I told him he needed to get his s*^# togather, because he was in for a bit of hell, my way.

This report was posted on Ripoff Report on 04/02/2013 10:07 PM and is a permanent record located here: http://www.ripoffreport.com/reports/usda-rural-development/internet/usda-rural-development-everyone-we-have-had-nothing-but-problems-internet-1040210. 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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#1 Consumer Comment

Our Frustrating Loan Process Experience with USDA

AUTHOR: Steve & Tammy Lackovic - (USA)

Carolyn to your posting, I want to add our experience as well as I have owned 3 homes in my lifetime in varying States, never late and always paid off those mortgages. BUT, when we had to go through USDA for a "rural home loan" here in Bethlehem, NC area (local banks would not assist or loan to small businesses in 2008-2010 period regardless of credit, my established business, etc); So with that said, we went through USDA. 

 I knew of a property that qualified as a rural property under USDA, and it was in foreclosure process, and what was the original Wachovia loan the previous owners had was one of many bundled by banks then and sold off to Hong Kong Shanghei Bank believe it or not... Their Transfer Agent was in Pittsburgh, PA for that foreclosed property & loan to sell this property we were interested in.

So when I saw this home come on market, we made offer, and with a few ripples from Seller, they accepted our Bid.  Now understand everyone, I am a 37 year licensed construction industry veteran, have done many things in my life, had an existing known local Electrical & remodeling business, yet I and my wife were put through the ringer to even get this loan finalized ! USDA's terms to loan were assanine and refuse dme and my own business from doing my own work on many issues, and to subcontract others wasting more monies in the process. Also USDA's terms were 1) property had to be less than 1 acre, 2) property could not have any type of attacked garage, 3) property had to be rural and within certain price range, 3) full property survey done and booked in County Offices (nearly another $2,000.00 cost to us to do), etc etc etc..

USDA required that the property had to be "ready move-in". Which meant for the income cap, and what they deemed so, reduced the amount of qualifying homes in the region even to look at or buy into meeting theit terms. So the 20 year old, brick built raised ranch style house we bought had a caveat by USDA that we could NOT move in and receive their "approval/occupancy certfificate", until we adhered to several pages of repairs/fixes their Agent deemed required. Many of the itesm were so pitiful and normal wear & etar and to do anything was simply wasting money anyway as we planned on remnodeling several rooms anyway one into the home. They did not care! It was Do as they demanded or else the loan could no go through. Example of one ridiculous demand was "spider vein cracks seen in batrhoom vanity sinks". These were cultured marble and occur over time but not abnormal to see- USDA requried those torn out and replaced wiht anything new (regardless were planning on remodeling bathrooms anyway after moving in)... 

SO with cash downpayment in hand, a closing that almost never happened (because HSB lawyer hired out of State from Charlotte was late to Hickory, NC realtors office), and USDA's list of requried repairs to gain occupancy, We were requried to have a new bank account from BOA with USDA overseeing that and it was for approx $12,000.00 they requried for the repairs they deemed necessary before we could take possession. This is a nice brick built (builder's) home we live in. Only one in neighborhood with full basement in fact. So for 2+ months after closing, we worked until 11:30pm nearly every night after working all day, to satisfy the USDA, still living in a Hickory apartment, and each time I would complete a listed repair, I had to call USDA to send Agent over to take digital picture of that, then issue me a check thereafter from the very BOA account they required us to set up in their control, so in essence, not only did we have to set $12,000.00 cash aside, but to do repairs I had to pay additional out of my pocket to do all those repairs firstly, then be reimbursed from the repair account which was our previously cash monies set aside to do those ! Kind of a double jeopardy stupid scenario making it seem hard to meet scheme as if they didn't want us to have this home.

The biggest cost was a new roof and I was forbidden to do my own roof (regardless of my profession), yet the roofing company they had hired, NEVER did facia wrap as I demanded before all new gutters were installed, so after we were in home, I had top remove all seemless gutters, to repair facias properly and then re-install guttering to protect facias/soffits from water/rot damage. This same roofer, never replaced rotted deck boarding either you could see from attic. USDA's mindset was "you got a new roof covering product and that is all we required". Anything else like facia wrap, decking replaced they didn't care about and was called incidental extras!! Can you believe it ! That is what a quality roofer does in fact do at time you tear an old roof off for a proper job...

I mean, how many people you ever run into who not only set aside $thousands in cash for repairs, but then had to make those from fresh monies, before you were reimbursed from your own set-aside monies.. UNBELIEVABLE!  But we did it as hard as it was, and got the mortgage and occupancy certificate. It was like some scheme set up to make most people fail... 

Right now after 7 years we have paid 50% of our mortage off, we have approx $80,000.00 equity value, and regardless of the USDA contract saying "this is a Govt collateralized loan", you go to any local bank, they do not seem to care about that to consider loaning or doing any re-finance!  Even USDA told us and loan docs state, this is a Federal Govt collateral backed loan- best in the world, yet local banks do not look at that as the best collateral that it is to loan against !!?? What the heck...

 

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#2 Consumer Comment

USDA Customer Service Agent VERY Hateful & Condescending

AUTHOR: Steve & Tammy Lackovic - (USA)

We came upon these complaints, and ourselves, as having our USDA mortgage since 2010, also agree with your posts and more. Recently we contacted Customer Service as we could not make July's mortgage payment as we always have previously through their automated system, and yet, we were blamed as a consumer not using another method!

Our story recently is about their automatic payment system, supposedly accessible 24/7. Now, we have always paid beyond principle, huge paydown on our principal made to date, and have NEVER been late in 7+ years, yet for July's payment (due on July 29th), we went to pay by phone on their automated system on July 28th, After we logged all info requested, we expected to hear "How much do you want to pay on this", but we did not. In fact, we got a recorded loop message "our offices are closed, please call back Monday Thru Friday normal business hours".  What the heck ! We made attempts all thru that weekend to no avail. Same message. Could not log our mortgage payment.

So early Monday morning (July 31st) we reached Customer Service Agent by phone, and she was so hateful and condescending from the start when we explained what happened. She acted like she didn't wat to hear what we had to say. She admitted their computer system was down again, but said it was not USDA's fault our payment could not be made till this Monday morning (2 days after due date) and would be assessed a Late Fee ! We argued with her, she got upset and said "USDA gives you other options to pay by and you should have used those".  What is this? I told her it is not our fault USDA's computer system was down again. We are the Consumer. She said she didn't care, and yes, it is our fault if our payemtn does not get to them by due date. I asked under the circumstanecs why they wouldn't credit this late fee since their computer system was not working correctly, and it is not the Consumers' fault for that. She said "NO", it won't be done, and she started talking over me and then hung up phone on me...

What the hell is this?? How can they blame Consumers when liability of their working computer payment system is THEIR responsibility- NOT ours? NOT even a message on payment system to this effect either. We will not use Western Union or such because of past identity theft problems so for 7+ years always paid by snail mail or called in payment like we tried to do recently. Yet we are treated so badly and crass by the USDA's Customer Service Agents and made to feel like we are stupid or worthless or problematic, when this problem was solely USDA's...

I am a licensed small business owner. I am very responsible. I have many creditors and accounts established over many years, yet my own USDA mortgage company treats us this way and it was their own computer payment system not working again.  How can that be of the Consumers' fault?

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#3 Consumer Comment

USDA Rural Developement

AUTHOR: Carolyn P - (USA)

I have had a USDA RD mortgage for the last 5 years and it has been nothing less than a nightmare.  In the last 3 years I have had nothing but problems.  You are required to submit a renewal packet yearly.  If ANYHING goes wrong during this process things turn sour quickly and it only gets worse.  Almost a year after there was a problem with my packet I am still reeling from it.  Since then I have been informed that I no longer qualify for assistance, but they can't supply me with any type of breakdown explaining why.  The man I spoke to can't even tell me what the maximum income is.  If you have no idea what the maximum income is to qualify, then how can you know I don't qualify.  When this all started happening my automatic payments suddenly stopped.  I called 5 times to fix the problem and was finally told to just manually pay my mortgage until the problem was fixed.  When I asked "What if my auto payments start again and I don't know it?  I can't afford to pay a double mortage with my income."  I was told that would never happen, I would be informed when they willl start up again.  Well 2 months ago guess what happened, the auto payments kicked back in unbeknownst to me  HALF of my monthy disability check was gone 3 days after payday.  All I got was a "Sorry for the inconvenience".  Now I am receiving correspondence stating that I have not sent in my current renewal packet, which I submitted 2 months ago.  AND I received a default notice yesterday, When I have NEVER missed a mortgage payment.  Calling customer service is not only a waste of time , but infuriating as well.  When I first received the loan it seemed like a godsend.  If you try in any way to pull yourself above the poverty line you will be penalized.  I raise 2 kids with a disability check and a part time customer service job.  We are by no means living high on the hog.  Just knowing the incomne limits would be nice.

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