Consumer complaint received 2019-02-26
Product: Mortgage — Other type of mortgage
Issue: Closing on a mortgage — 
Company: Movement Mortgage LLC (PA)

I received a XXXX loan in my mortgage for home repairs. I went to settlement and was waiting for the first payment to be paid to the contractor and I was told by HUD that I needed to secure the permits for the property but when I went to secure the permits, the City had the property listed as a commercial property and the other two apartments are not a part of the property. The loan was given to me with the intentions that I would have the 4 units rented. I called XXXX of XXXX XXXX XXXX XXXX to let her know what the City stated and was told, " They could not release the funding due to FHA guidelines. I was told that the two other units does not exist so I brought a home for an amount that is not worth the amount the mortgage is. No one checked the property line and now the mortgage company is asking for payments and I am unable to live in the property due to mold and other things that was supposed to be covered under the XXXX loan. Also, the bank went off me making income from all 4 of these units and I don't make enough currently with just my current job to pay the mortgage payment for this property. I was told by XXXX to call HUD to see what I can do about this situation. HUD told me there was nothing that they could do to help me.

XXXX XXXX XXXX XXXX, Pa XXXX   Timeline XX/XX/XXXX Showing of XXXX XXXX with XXXX XXXX ( my agent ) XX/XX/XXXX Pre-approval given by Movement Mortgage XX/XX/XXXX XXXX  reaches out to XXXX XXXX ( loan officer ) about a XXXX loan for a 4 unit mixed used propertyXX/XX/XXXX I sign the Standard Agreement for Sale of Real Estate with my agent XX/XX/XXXX I am asked to sign mortgage dos and request that my agent reviews then firstXX/XX/XXXX I inquire about the {$2000.00} deposit and if it is included in the {$12000.00} closing costs XX/XX/XXXX I request information from the loan officer about including the first three payments into the mortgage to cover costs during the time the building is being repaired XX/XX/XXXX Me, XXXX of XXXX XXXX XXXX XXXX, XXXX and XXXX of XXXX XXXX XXXX XXXX meet at the property and complete a walkthrough of the entire building excluding the commercial space. Two tenants are observed living in the property in two separate units. I pay {$570.00} and {$390.00} to the consultant.XX/XX/XXXX XXXX XXXX XXXX XXXX submit their bidXX/XX/XXXX I receive the inspection report from the XXXX XXXX  XX/XX/XXXX I pay the seller the 2nd {$1000.00} deposit XX/XX/XXXX A bid of {$87.00}, XXXX is submitted and the loan officer inquires if the amount is acceptable to me because it is XXXX over what the XXXX consultant suggested XX/XX/XXXX the contractor replies that he was asked to include additional itemsXX/XX/XXXX I reach out to the contractor and schedule a meeting to discuss the bid XX/XX/XXXX Per the loan officers request, I file taxes XX/XX/XXXXXXXX asks XXXX to schedule the appraisal XX/XX/XXXX appraisal orderedXX/XX/XXXX Contractors profile completed. XXXX XXXX XXXX XXXX XXXX XXXX  inquires about the status of the closing XX/XX/XXXX XXXX   announces the appraisal is in and awaiting approvalXX/XX/XXXX XXXX XXXX XXXX   sends additional documents XX/XX/XXXX XXXX provides the sellers realtor an update XX/XX/XXXX XXXX emails XXXX about the status of the appraisal and XXXX  shares that the appraiser added adjustments to make the comps higher and they are awaiting approval XX/XX/XXXX XXXX  asks me to contact XXXX XXXX for insurance. I am asked to say the commercial space is being converted to obtain a lower quote and get better insurance after closing. The initial quote is rejected, and a second quote is sent.

XX/XX/XXXX I am told that my student loan payments need to be lowered for my debt to income ratio. XXXX calls the loan company with me on a conference call and walks me through the process.

XX/XX/XXXX I am asked to pay off my car loan in order to qualify for the mortgage XX/XX/XXXXXXXX requests a closing disclosure from XXXX XXXX XXXX XXXX XXXX XXXX.

XX/XX/XXXX I am asked to borrow money for closing and get gift letters from the lenders.

XX/XX/XXXX I close on the property. During closing, the sellers realtor discloses that the one tenants never pays and you will have to get him out of there and the other guys pays.

XX/XX/XXXX I reach out to the tenants and am told by both parties that they have not paid rent in some time. I also contact the loan officer about increasing my insurance and having it included in the mortgage payment. I am told I can not do so and must pay out of pocket.

XX/XX/XXXXXXXX  refunds the payment for the appraisal.

XX/XX/XXXX I complete a walkthrough of the property with the contractors who are shocked to learn tenants remain in the property.

XX/XX/XXXX I request evictions templates from my realtor. He informs me to obtain a renters license.

XX/XX/XXXX I inform Movement Mortgage of the intent to switch contractors due to inconsistencies over the request for a material draw and anger over the inconvenience of tenants in the property.

XX/XX/XXXX walkthrough of property with prospective contractor