Financing in Omaha>Question Details

Shawn, Other/Just Looking in Omaha, NE

Thank you for your site! In 2005 I refinanced my home through a streamline FHA process. Last week the

Asked by Shawn, Omaha, NE Sat Mar 21, 2009

rates dropped and I called to see if I could streamline again and the gentleman said that I do not have an FHA loan.

After digging for awhile he told me that when I did the streamline FHA refinance, they switched me over to a conventional.

Is that cool?

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Dean Uhing’s answer
Sorry that happened to you. Your experience shows the importance of asking questions before legal documents are signed. Once a person signs a legal document, it is done with the understanding that the document was read and understood. This is especially important when refinancing a property as refinancing doesn't always carry the same consumer protection as the initial financing when actually purchasing the home. Also during 2005, there was lots of stuff going on within the secondary mortgage market that is slowly coming to light. My personal feelings are that the consumer was not well-protected during this time.

You mentioned the gentleman you called did the "digging". I was wondering if you have the documents that were given to you. You should have disclosure documents prior to the signing and the documents you actually signed. Maybe you could review these (perhaps with an attorney) to see if you were promised one thing and then given another. If so, you can register a complaint. I'd start with your senators and congressional representative.

Good luck.
Dean Uhing
Prudential Ambassador Real Estate
402-709-0727
1 vote Thank Flag Link Sat Mar 21, 2009
Shawn,

Your lender may have switched you to a conventional loan in an attempt to get you the lowest rate possible, however this should have been communicated to you at the time. The upside is that conventional loans rarely have pre-payment penalties; check with your lender to be sure though.

Before refinancing compare how much money you will save on your monthly mortgage payment versus how much it will cost upfront to refinance and how long you plan on keeping the house. Just because rates are lower doesn't mean that refinancing is always a good idea. Any good lender in Omaha can assist you with determining if refinancing makes sense.
Web Reference: http://www.TrummTeam.com
1 vote Thank Flag Link Sat Mar 21, 2009
Shawn,
Well...to me it's not cool that the lender who you refinanced through didn't tell you that they put you into a conventional loan. Everything should have been disclosed when you refinanced. Is it bad that you are in a conventional loan? No. You can still refinance a conventional loan. I would contact your lender, ask what options they have available and make sure you don't have any pre-payment penalties on the loan they gave you. And ask questions so that you know what you're getting.
1 vote Thank Flag Link Sat Mar 21, 2009
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