Consumer complaint received 2022-08-29
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: AmeriFirst Financial Corporation (FL)

XX/XX/XXXX : Amerifirst has stated in an email there was a hiccup in closing documents. Informed they did not factor the cost of monthly mortgage payments into closing papers.

Amerifirst Renovation & Construction Draw Processing office is informing we will need to allow a corporate advance of {$5400.00} and the bank is to also keep the 10 % contingency of {$4800.00} ( we were to receive for reimbursements ) to cover final draw to contractor. 
Renovation & Construction Draw Processing office will not respond to emails requesting updates. They have called twice and emailed once requesting a call back to answer any questions. As of XX/XX/XXXX an email was sent requesting all correspondence be sent via email. 

XX/XX/XXXX Contacted Corporate Director/assistant director of XXXX renovations ( draw office ). Return call on XX/XX/XXXX received, they requested we accept a corporate advance '', we declined and asked why it was not deferred as stated previously. On a return call XX/XX/XXXX, were informed the situation was escalated on our behalf and we would here from them the following Monday ( XX/XX/XXXX ). No call was ever received. Left a message requesting an update XX/XX/XXXX and not heard from anyone as of XX/XX/XXXX. 

According to FHA/HUD website explained that monthly payments were deferred until renovations are completed. HUD consultant informed during initial consult this was how the payments were covered. 

We were never notified at anytime during the 5 months of renovations that there was a problem. When we received emails stating payments were made on our behalf, we considered it was a deferment they were referring to. 

No explanation or details of what a corporate advance is or how it works, etc. has been provided. Corporate advance to my understanding is for persons who are in bankruptcy to prevent foreclosure. This is not the case, thus why we declined. Price of home was {$120000.00} with {$48000.00} in renovations. Total at closing was approx. {$190000.00}. Anything over this amount will exceed loan to value of the property. We do not see a reason why the payments were not deferred as we were told numerous time it would be covered or taken care of. 

All funds are being withheld at this time until we agree to the corporate advance. 

Payments were to be deferred until completion of renovations as the house was could not be occupied. We asked of this many times during the waiting period from XXXX XX/XX/XXXX until closing XX/XX/XXXX. 
Many delays in closing occurred due to poor communications, our documents changing hands numerous times. The loan officers kept switching us to different loans each time increasing the interest rate instead of locking in the rate. Mistakes were caught time and again with closing totals, estimates, list of work being done, documents requiring signatures, type of loan being financed, etc. All of which caused a 3 month delay in closing and an increase in the interest rate. Some situations occurring during that time were done so with out our knowledge or approval. 

We have not been provided with any documentation within our closing documents stating the bank has the right to withhold funds.