Another Stressful House Closing

Another Stressful House Closing


In October of 2001, we had a selling closing on our house in Highland Village on one day  and a buying closing on the next day. This meant that the moving van could start packing right away and then deliver to new home the next day and we would spend one night at a hotel.

It went pretty smoothly at the selling closing until the final numbers came in and I noticed about a $5000 discrepancy in the amount we were to receive. The agent assured me that it was correct, but I knew the sales price was based on the equity from 10 months before. I need to explain.  This was a sale to an agent for the firm from which we were buying a house. The company Goff, Inc. promised to buy your house at 90% appraised value minus 6% closing costs. They used a ReLo third party to buy the house. Anyway, when the deal was made, the numbers were approximate since the amount owed on the present mortgage was calculated from two months previous. Since it took 7 months to build the house and because I was paying double payments, the equity was indeed $5000 higher than the paperwork.

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So, we called the president of the company (ReLo), and the woman conducting the closing explained the situation, to which he replied, "Oh, he's right, base it on the mortgage company's figure". I have always suspected that this was a common happening and that my catching it was probably not common. Anyway the remainder of the closing went smoothly and we received our check to take to the next day closing on buying our new house.

We (Geri, Mom, and I) spent that night in a so called suite, which was really just a very large motel room with two queen sized beds and an area with a couch and TV.

The next day's closing was actually held in the seller's headquarters building (they had a showroom, etc as well as offices for the mortgage broker and closing company). The lady doing the closing was quite young and probably had only done a few before but all seemed to be going well. 

As many of you know, there are about 3,000 papers to sign at one of these things and we were about 1,500 in when the advice on loan came across the table. I took one look at it and realized something was wrong with it. The monthly payment was way too low. So, I brought this to the attention of the seller agent and the lady doing the closing. Both assured me that I must be mistaken and they had never heard of anyone complaining about a lower than expected monthly payment. A bit later, the promissory note came across the table and as I read it, I knew what was wrong. The note was for a 30 year mortgage, and we had asked for a 15 year. I stopped the proceedings again and explained the problem. The lady doing the closing stated; "Well, what difference does that make, you just make the bigger payments" to which I replied and the seller agent agreed; "The interest rate is different". The closing agent then astounded all of us by saying; "Yeah, but wouldn't it be higher?" 

I said earlier that I thought she didn't have much experience, but I thought that she would have been properly trained and understand how mortgages work. Especially, since she was working for a settlement company.  Since the company providing the mortgage was also in the building, we called in the woman who had been handling the process. After explaining the details, she said, "but, John, we never talked about a 15 year mortgage". Since we had originally dealt with her father, I  told her we had with her father and on the original paperwork it was noted. She looked and in a shocked voice, "Oh, that's dad's handwriting alright, I missed it!" Again the woman doing the closing said, "but that's to his advantage isn't it since the interest would be higher on a 15 year mortgage?" We were all dumbfounded and after explaining it again, the woman handling the mortgage got on the phone to the broker to see what she could do. 

It turned out, that we would have to have another closing in the future to fix.

I then asked; " Okay, who's going to pay for a hotel and storage for our furniture?" Well, that worked, the bank said they could change the percentage but not the term and I could just pay the 15 year amount as extra principal.

After all the closings, we arrived at our new home and the moving van is not being unloaded. Goff's site manager explains that we don't have an occupancy permit yet and will probably be a couple of days. After I explained that the moving company storage fees would have to be paid by the seller since they knew we were having a closing, he and the city agreed to have our belongings put into the house, but we couldn't stay there. I again asked; "Okay which 5 star hotel suite has been reserved for us in the meantime". He got on the phone, then he and whoever he called went into negotiations with the city and lo and behold, a certificate of occupancy was signed.

We then spent our first day in Krugerville. What a stressful day, but our new neighborhood and town turned out to be the best place for the three of us.

Davdan @ 2008-2018