Article View: nj.general
Article #140Sterling National Mortgage of Clark NJ
From: charles.e.allison..jr
Date: Thu, 21 Jan 1993 15:39
Date: Thu, 21 Jan 1993 15:39
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Summary: Don't get screwed by Sterling National Mortgage of Clark, NJ Fellow netters: Don't let this happen to you! Sterling National Mortgage Company is a loser!! Avoid using Linda Valentine to re- finance your mortgage! Here are the details - In late July we applied to re-finance our mortgage with Sterling and gave their agent, Senior Loan Officer Linda Valentine, the mortgage application fee. Appraisal and credit approval went fine. By mid-October we and the Loan Officer locked-in to a great interest rate of 6 7/8 (plus points) for a fifteen year mortgage. We were very excited about the great rate, especially since the uncertainty about the outcome of the Presidential election was causing interest rates to rise. In early November we received our written mortgage commitment, but "without a stated interest rate." Of course, we were immediately concerned! Was Sterling trying to avoid providing the mortgage at the agreed to rate? In the mid 1980's during the last re-finance surge, the mortgage companies had horrible reputations of screwing their applicants. We immediately contact the Loan Officer to inquire what's going on. She states, "Don't worry, it's just an office screwuup. You're locked in at 6 7/8. I'll get it resolved tomorrow." So we attempt to followup the next day to see how she resolved the problem. We left messages 3-7 times daily for the next two weeks, but our Loan Officer never contacted us. Finally, got angry! This delay was costing us hundreds of dollars a month! So, we attempted to contact the Bank President, Mr. Stanley Elberger. But we only got to leave a message on an answering machine. By gosh, that night our Loan Officer calls to discuss the situation with us. Unknown to her, we use our answering machine to tape her excuses. She spins a fairy tale great for Ripley's Believe or Not Stories. While she agrees we "locked-in" the rate with her, she says her administrative offices lost the fax documenting the rate and that since interest rates had risen in the interim, Sterling could no longer honor the rate they promised. (She says she discovered this "mistake" two weeks earlier, but why didn't she bother to notify us? In the meantime interest rates rose even further.) Per Linda, "Of course Sterling will hold the mortgage commitment open till interest rates decline to their previous rates ... after Paul Voucker is named Clinton's Secretary of the Treasury. In fact. it might even get to 6 3/4%!" To add insult to injury, our attorney calls Sterling's president. Our attorney also does not believe this fairy tale, or nightmare come true. The president doesn't call, but his agent says, yup, what Linda says is true. We know you locked in with Linda, but without the office paperwork... I'll tell you what we do ...... Yes, it gets even better. If you believe in the tooth fairy, the Bank President says there is some law that prevents them from closing at the original rate. "To avoid breaking the law," we'll provide a mortgage 3/8 less that the going rate (which is still 3/8 higher that our lock-in)." A few weeks later, Sterling's advertized rates fall to 7 1/4. We plan the closing, as 7 1/4 minus the 3/8 reduction promised by Mr. Elberger equals our lock in rate. But naturally Sterling backs out just 2 days before the closing. So, stay away from Sterling National Mortgage Company and Linda Valentine. It will save you lots of aggravation and thousands of dollars. In the meantime, we have sent pleas for help to the State Department of the Treasury, the Better Business Bureau, and the Asbury Park Press Trouble Shooter. If you have any other ideas, please contact us. We'll keep the net updated on our plight. Chuck Allison 908-949-2733 (Days) 908-530-2682 (Evenings) cea@hogpa.ho.att.com
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Path: arc1-ca.pugleaf.net!sparky!uunet!spool.mu.edu!dsinc!cs.widener.edu!bu.edu!att!cbnewsi!cea From: cea@cbnewsi.cb.att.com (charles.e.allison..jr) Newsgroups: nj.general,nj.market.housing Subject: Sterling National Mortgage of Clark NJ Message-ID: <1993Jan21.153918.6836@cbnewsi.cb.att.com> Date: 21 Jan 93 15:39:18 GMT Distribution: nj Organization: AT&T Lines: 86