Consumer complaint received 2021-02-17
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: GUARANTEED RATE INC. (TX)

I am one of the sellers and am filing this complaint for the Sellers and Buyer ( s ) against Guaranteed Rate XXXX  and XXXX XXXX for the unprofessional handling of the contract process and XX/XX/XXXX closing process resulting in {$15000.00} additional costs to Sellers. 

This was a family transaction from parents ( sellers ) to daughter and son-in-law ( buyers ) with parents gifting {$80000.00} in equity. The daughter, son-in-law and their children had been residing in the house for approximately 2 years, from XX/XX/XXXX to XX/XX/XXXX, closing. 

( 1 ) When reconciling the sales contract information with closing documents, I noticed a {$7500.00} discrepancy in the XX/XX/XXXX signed TREC contract and closing documents for 3rd party financing : Signed TREC XX/XX/XXXX Closing Difference Sales Price payable by Buyer {$80000.00} {$80000.00} Sum of all 3rd Party Financing {$170000.00} {$170000.00} {$7500.00} Sales Price {$250000.00} {$250000.00} XX/XX/XXXX, XXXX XXXX left me a voice message that based on Buyers ( daughter and son-in-law ) loan application we have a lot of wiggle room and can do whatever I ( Seller ) wanted. 
XX/XX/XXXX XXXX XXXX originated and routed the TREC Sales contract with 3rd Party financing at {$170000.00} ; Buyers signed XX/XX/XXXX, Sellers signed XX/XX/XXXX. 

( 2 ) XXXX XXXX and XXXX XXXX failed to update us on the final equity gift amount for closing, allow Seller a say on the {$2000.00} increased amount or make changes to the gift amount before closing, Clearly, the Buyer did not need our additional {$2000.00}, since he received a {$2800.00} refund at closing : XX/XX/XXXX estimated {$82000.00} gift letter received by email from XXXX XXXX with Guaranteed Rate stated : this is an ESTIMATE and can be changed later, please sign their loan needs to put in underwriting. 
XX/XX/XXXX email clarifying {$80000.00} gift amount to XXXX XXXX, Mortgage consultant with Guaranteed Rate. 
XX/XX/XXXX signed TREC form supported previous verbal conversations with XXXX XXXX of our intent to gift {$80000.00}. 
XXXX XXXX failed to update us that the Buyers information changed removing our daughter, making the {$82000.00} equity gift wholly to our son-in-law. 

( 3 ) XXXX with XXXX XXXX suggested I get monies I believe we were owed from my daughter, who is not listed as a Buyer. XXXX suggestion and anything returned by my daughter or son-in-law does not reduce our gift amount or associated income taxes due on the increased gift. 

My first call went to XXXX voice mail, I told her the gift amount and taxes were wrong and I would file a complaint. She returned my call apologizing said she saw it as soon as I called. She could adjust our closing cost and sent new closing documents removing the {$81.00} survey cost. 

XXXX said it was too late to correct the other, it would take 2 days and XXXX would be out of town and unavailable, XXXX would have to return monies to me as she was getting a refund. She would call XXXX and have XXXX explain it to XXXX. 

( 4 ) XXXX XXXX failed to provide Seller copies of closing documents for review before closing. We received XXXX email of pre-closing documents on XX/XX/XXXX, one day after closing. 

( 5 ) We paid the property taxes twice, {$2200.00} was taken at closing and remained unpaid against us/Seller as of XX/XX/XXXX with {$2500.00} due. 

( 6 ) Sellers loss : {$15000.00} Sales price {$7500.00} Increased gift {$2000.00} Taxes taken at closing {$2200.00} Taxes paid as past due {$2500.00} Taxes on increased gift {$700.00} ( estimate ) ( 7 ) Buyer did not receive closing documents prior to closing. 

XXXX XXXX with Guaranteed Rate represented both parties. XXXX XXXX managed communication between the parties by phone calls and text. XXXX XXXX prepared, distributed, and managed the TREC form and recommended finance options to the Buyers. XXXX XXXX, Mortgage Consultant with Guaranteed Rate managed gifting communication between the parties. XXXX XXXX with XXXX XXXX managed the escrow process. XXXX XXXX, Escrow Officer with XXXX XXXX managed the closing documents and closings. 

XXXX XXXX and XXXX XXXX, Guaranteed Rate failed to keep Seller informed or updated on Buyer changes prior to closing, XXXX XXXX failed to provide Sellers and Buyer copies of closing documents for review before closing, and XXXX XXXX and XXXX XXXX, Guaranteed Rate were not present or available at closing and refused to respond to emails after closing. XXXX XXXX, XXXX XXXX, suggestion that I get my money back from XXXX ( daughter ) who was not a Buyer is improper and offensive.