Thursday, September 23, 2010

Refinancing Saga

August 31 we applied to refinance our mortgage with the bank that currently holds the mortgage. September 9 we got a call to set up the appraisal for September 13 at 1 P.M. The same day the mortgage officer from the bank told us to have the property in tip top shape for the appraisal. That found us painting, grooming the drive, weeding and mulching flower beds, and doing other miscellaneous clean up projects Friday evening and Saturday. We worked from 6 A.M. until 11 P.M. and did not take many breaks even for eating. We each had a banana about 8 A.M., a sandwich about 2 P.M. and a bowl of soup about 9:30 P.M. We rested on Sunday. Monday morning we were up at 2 A.M. to clean the main floor and basement of the house. By the time we left for work at 6 A.M., the place was ready for the appraiser.

This week:
Day 1 -- we received an e-mail from the bank. "The appraiser has concerns about the non conforming use of the property due to the print shop. The appraiser contacted the township and according to our rules and regs pertaining to the secondary market your home is not legal for their purposes. This only means that it does not fit the parameters for the low rates and that's why your home mortgage has remained with **********Bank. It is not a sellable loan, therefore, I cannot pursue this refinance any further. . . You could refinance within ***********Bank but when a loan remains 'in house' as we call it, rates are not that attractive and it would not behoove you to spend the money. So sorry ladies..."

Day 2 -- I e-mailed the bank: "OK, that raises some questions for us. 1) non conforming use -- How is it non conforming? Non conforming to what? 2) township--what did the township say that disqualified us? 3) rules and regs pertain to the secondary market -- in what way is our home not legal for their purposes?

The bank e-mailed us: "It is non conforming due to commercial use being a print shop. The secondary market does not allow for any use other than residential. . . The township merely confirmed that it is commercial in nature, they know it exists and that's OK, but not for secondary financing....Does that answer your questions. Let me know.

We contacted another local bank about refinancing.

Day 3 -- I e-mailed the bank: "That does answer our questions. We may look into other possibilities.

The bank e-mailed us: "Our corporate office ...had the underwriter review the portion of the appraisal that was done by the appraiser. We may proceed with your refinance providing: that the appraiser finds 1 or 2 comparable properties that have sold and settled that are like your property. Statement that the use of the garage is legal as per the township zoning officer. Statement indicating that the garage can easily be converted back to a normal garage. I'll keep you posted so just hang in there.

We complete the refinance application with the second local bank.

Day 4 -- I e-mailed the bank: Hmmm now that raises more questions and these are more along the lines of ethics. If it were not legal two days ago, how is it legal today? If it is legal, why were we told it is illegal?

I am waiting to see what the Lord has in store for us.