Failed to Honor Earlier Understanding

Posted by sgtsavage on 7/11/2008

I had a mortgage loan with this Clarksville, Tn bank and my loan officer said that there would not be any problem in using my property as collatral for buying some more land. I checked periodically and found that everything was okay until I finally submitted my papers (about 150 pages and three days work). Then I was told that they would not considered the existing property (professionally appraised at 3x's their mortgage debt) for an additional purchase (professionally appraised at 140% of the purchase price). Needless to say that I had to submit the paperwork again with another bank who promptly approved me (I have a 990 credit rating under Transunion's new rating system that puts me in the top 1% of risks). I was always on time with my payments and had more than enough available money to make the payments and to have extra. So the new bank offered me a substantial rate reduction and I paid off the Legends mortgage, closed my checking and savings accounts and found a bank that wants to stay in business. While there are some pretty friendly and helpful folks at Legends, their loan department is not to be trusted or depended upon for keeping their understandings. So check out the banks that you want to do business with because there is a difference. Thanks to the other bank, my net worth has increased substantially through their loan to me and I hope to make a lot business with Commerce Union Bank.