Your Questions About Check My Mortgage Statement

Linda asks…

For a mortgage professional: How does a gift letter work on a refi?

I am in the process of refinancing my home and I am becoming a bit annoyed with the lender I am working with. It’s a typical rate/term refi. However, I am receiving a $20K gift from my father to to bring my loan down to 80% LTV to avoid MI. I used to work in the mortgage industry and based on my experience, all I should need is a signed gift letter and canceled check.

However, the lender is now (in the 9th inning) asking for 2 months of my FATHER’S bank statements and claiming it’s some new law as the reason why they’re needed.

Is this lender correct that I really need to provide my FATHER’S bank statements? If yes, please explain why and what the law is and what the rationale is. Thanks.
Thank you to all who answered so far. I could totally understand if this was a purchase transaction and they needed to verify my downpayment wasn’t coming from an ineligible party (broker, seller). However, this is a REFI. Is this standard practice to ask for my father’s bank statements? Or, is this lender incorrect?

admin answers:

In fairness, lenders are very skittish these days with respect to mortgage fraud. You’re right, however. If you can prove that the gift is irrevocable, that should be enough. I’d suggest you go back to the lender and work with them from that perspective. Don’t bother butting heads with them, its not worth it. Give them the comfort that the gift is not a “sham”. If that doesn’t work, consider taking your business elsewhere.

Its completely understandable for a lender to want to avoid any risk of mortgage fraud. However, if they are being overly-intrusive for no reason, as a consumer you have a right to “vote with your feet”. Good luck.

Laura asks…

Should we get a lawyer for the problems we are having with our mortgage company, Litton Loan?

Around the 20th of February my husband got a call from the foreclosure department announcing that they had not received payment since October, and that our home was in foreclosure, according to there records we owe $7,290.00, $2,880 of which was attny fees, and $118.00 in late fees. I, being the bill payer, called them the following day, where they informed me that, according to there records at that point, they hadn’t received payment since August. I got copies of bank statements and faxed the statements with a letter of dispute to the customer research department, waited 2 days, and called LL back to see who received the fax and how long we would have to Waite to hear back from them. During a two hour conversation with customer service I was informed that the research department would get back to me with in 10 days. I explained that all we wanted to do was figure out what the problem is with our mortgage and pay it. The girl from customer service informed me that, according to her records, the problems started back in February of 2008, when they weren’t receiving the full mortgage and escrow pmnt. She was unsure of the details of the information she was giving me, and had to put me on hold several times to Speak with her supervisor. Our conversation was only confusing, and got us nowhere. In our loan agreement we chose to pay escrow and insurance separately, but her records show we agreed to have escrow billed along with principal and interest. 20 minutes later she apologized and said that all of this actually started in January 2008. My husband was in bankruptcy last year from January to end of March, so the customer service rep advised me to Speak with the bankruptcy department. I was transferred, I spoke with the bankruptcy rep for about 15 minutes, giving her the details of the drama, and requesting she locate the disbursement of a $4,000 check we paid via phone on March 25, 2008, at that time we were informed that our payment would have our acct in good standing and we could go back to paying principal and interest only. {How It Started: At that time LL paid our escrow for 2007 (without our knowledge) and began foreclosure due to payments not made in full, and again refused to accept payments until paid in full. We only learned of the near foreclosure when I called the tax assessors to find out how much we owed, they told us LL covered the taxes. We called LL to pay them for the property taxes and discovered that because they payed property taxes we ended up owing $1000.00 in attny fees and costs, piling up w/o our knowledge.} Back to the present: The Bankrupt rep contacted me after two hours of researching our acct, and informed me that she found the $4,00 payment had not been disbursed properly, she made adjustments to our acct. I was told to send payment of $1,577.00 to be combined with $777.00 they have in forbearance and that we would be caught up through Feb, and need to send payment for PRINCIPAL and INTEREST for Mar. I overnighted the payment with a detailed letter of the issues, happy as a clam, and called a few days later to make sure that payments where applied as discussed… to discover that they have returned that payment now, too. The bankruptcy rep avoided my calls repeatedly, and when I finally got her to speak with me on the issue of the returned check she said that there was nothing further she could do, that she didn’t know that we were in foreclosure (which she did, it’s why I called her), and that we needed to speak with the forclosure department, to see if we qualified to work out a payment plan. We finally got ahold of the foreclosures department yesterday (as they too where not returning our calls) where they state that we owe $3,370.00 not including attny fees, dating back to October. They’re payment record is also incorrect, and the rep said I will have to wate up to 30 days (remember: I was told 10 before) for the research dep to send me correspondence regarding the fax I sent them. The foreclosure dep had no idea what the cost of the fees were, and attempted to shoo me off by telling me that it could take 24 to 48 hours for them to get back to us on that. But on the other hand they were willing to see if we qualify for a repayment plan. When I stated that there was no need for that, that we have the payments to get caught up, (as they have been returning all the payments we make, the mortgage is piling up in our acct) we just need to know how much we owe in attny fees, suddenly he was able to call the attny office himself and put me on hold while he found out how much we owe. When he got back to me I was informed that we owe a total of $2.877.00 and $156.00 in late fees, our new total (since the adjustment- which his records now show) is $6,247.19. That’s a difference of $1,043.00 from the original charges, that covered principal and interest, but the attny fees didn’t change??? What???The adjustment brought us up 3 months, and the rep wasn’t even posative when the

admin answers:

Since you are in foreclosure I would get an attorney. Sounds like you have tried to work out the problem but this is to important of a problem to work out on your own at this point. If you have made every payment in a timely manner and have the paper trail to prove it I’m sure that you will be ok. At the same time it sounds like your lender is so messed up they need a little prodding to get this situation resolved.

I had a similar problem when my lender failed to credit an additional payment. It took them three months and I had to mail or fax them copies of my canceled checks showing my payment history 3 or 4 times before they finally figured out that they had screwed up.

Sandy asks…

Can all your wisdom and experience help with this? Guys you too?

I have to discuss finances with my exe, the mortgage etc. It is like trying to talk to a 2 year old. In all the time we were together I was never “allowed” to see his bank statement. His pay cheques went into “his” bank account. I would try to make a budget, but he wouldnt sit down and discuss anything. He would just run out the door. We NEVER once discussed anything. So now everything is in a HUGE mess, and it HAS to be discussed !

HOW do you deal with a man who seriously does have the mental and emotional age of a 2 year old? This is SERIOUS, and he refuses to discuss anything. Guys any ideas?
It was a fight the whole time we were together, I would make a budget and he would pay no attention to it. He has no assets, just the house which is in both our names because I dont have enough income to qualify for a mortgage
we werent legally married.
I mean honestly I will say nicely we have to discuss this, so call me when you are ready to and have time, and years will go by and it isnt the “right time” for him
Nick I dont tell him he is a two year old, but I am so frustrated with trying to deal with someone who acts like one
question is” HOW do I get him to listen, to sit down and discuss things like an adult?
In Canada there are community property laws if you have lived with someone for one year ! The lawyer has it all dealt with as far as it was my money used for the downpayment, and I get that back first before equity is considered and all that. But if I sold now I wouldnt get my money back out because property values have dropped
Men please what would work to get you to talk, on the phone, about this? No anomosity, no reason to rake up the past, I am trying very hard to keep it friendly and amicable
see new question above, instead of answering this one thks !

admin answers:

Now temper this response with the fact that I do not mean to insult you or to be rude.
Stop referring to or thinking that any man who loved you is a two year old. That is not a good start to problem solving. If’n you want to get mad at me then do so…………that said
Put him in a comfortable place and tell him you have something to say and do so. Then let him walk away without an answer at the time if he chooses to do so. Or be prepared to hear what he might say.
You fostered this situation with your “I was never allowed”. Now seriously you had the power to change that then and didn’t.
Now follow through and maybe it isn’t even as bad as you think. I certainly hope not. Anyone on here for any period of time knows that you don’t put up with much.
In my humble opinion.
If that doesn’t work then open a can of whoop on him and get it over.

Jenny asks…

Illegal mortgage practices?

I’m giving a down payment as a gift to someone on a conventional mortgage. I’m wiring the money to the title company and was told by multiple parties that I need no bank statements etc. My bank just called to tell me that the mortgage company is trying to get my acct balances. . Is this legal? I haven’t given them any authorization to check all of my bank accts.

admin answers:

Of course they can ask for the source of the downpayment.

Chris asks…

Gift Letter for Closing Costs?

(follup question)

My grandparents offered to pay the closing costs when my husband and I buy our first house here in the next few weeks.

-Our mortgage broker told us that for them to put ANYTHING toward the house (downpayment, closing, etc.), she has to see 2 months of bank statements & a voided check from them.

-Is that an actual law? Can someone please send me a legitimate site that says the law? My grandfather thinks he’s being swindled or something.

-Is it a new thing?
The closing costs are supposed to be around $2,500 to $3,000. I thought it sounded strange too!
Danielle, it has to be in our account for 2 months or the bank will not let us use it… it’s a hassle. My friend’s parents gave them cash for a downpayment in June & the bank wouldn’t take it.

admin answers:

I work in real estate. I don’t know if it’s actual law or not, but what is generally required is a statement from their bank showing that they had the money to give you (can just be a simple letter), a copy of the check they give you, and proof that you put it into your account (i.e. Updated bank statement or print out once you deposit it). Would help to know what type of loan you were getting. But what they are doing is trying to verify that you did not get a loan for the costs.

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