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Article #140

Sterling National Mortgage of Clark NJ

#140
From: charles.e.allison..jr
Date: Thu, 21 Jan 1993 15:39
86 lines
4266 bytes
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