Consumer complaint received 2022-07-25
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — 
Company: Intercoastal Mortgage LLC (NC)

My wife and I have moved into our new house on the XXXX of XX/XX/XXXX and we feel like we have been taken advantage of by the builder, bank and appraisers. We have has several issues at then end of the process that makes us feel like we have the victims of appraisal fraud, predatory lending, and shady business practices by the builder after locking in on the price of the house and then increasing the purchase price of the house after it was set on my lot. Below is our statement of what has transpired. We have evidence to back up our claims. 

My wife and I started to look at selling our house and to build our dream house back in XXXX. We sold our house back in XXXX and started looking for builders and options for the land we owned. We talked to a few builders and got rough estimates for the build. We were told by the builders they could not lock in on prices due to the volatility of the market. So my wife and I went to talk to XXXX XXXX XXXX of the XXXX since my wifes parents and my brother got homes from them and seemed to have no issues. We went and spoke to the sales rep for the builder ( XXXX XXXX ) and went over several houses and options and discussed what we were looking at and the prices we were getting from other builders. We decided on a house that was similar to what we had picked with the other builders and the price difference was in the range of {$60000.00} to {$80000.00}. We had a lender already lined up when we started this process that refused to do the loan once we told them we decided to go with XXXX XXXX XXXX. They would not go into detail why they refused to move forward with the loan. So we asked the builder if they could refer us to a lender. The sales rep referred us to XXXX with Intercoastal Mortgage and we decided to go with them. We went through the process of getting approved and we hit our first snag. The lender told us that we had a tidewater issue when they sent the appraisal request to a VA appraiser and they labeled it a tidewater. We asked what that was and were told their appraiser didnt see any value in our proposed new construction. The builder called and told us that the VA didnt give much value to some of the options we had picked like the garage which would have cost {$50000.00} but the VA would only give us {$12000.00}. So we removed the garage and the finished upstairs and we were waiting on a response from the lender on the appraisal and we got an email from the builder saying that we should look at a conventional loan. We told the lender and builder to go ahead and go with the conventional loan. The lender sent us an email about a week later to inform us the appraisal came back at {$410000.00} which is what we needed to move forward because our loan was {$300000.00}. We went in to the builder and signed the paperwork for the house locking in the price before the new price increase took effect from what the builder was telling us. We were told that we should not see a price increase but had to sign a form stating the price could increase due to the market. Our proposed house payment was {$1900.00}. We kept in touch with the builder and lender trying to stay informed on the status of the house, rates and price increase as the house was being built. As the house was coming off the factory we tried multiple times to lock in on the rates but was told by the lender we should wait til the house was in route to lock in the rate due to long setup times.During this time we received an email from our sales rep with the builder that she had quit. We finally got a ship date on the house and we were able to go ahead lock in the rate, which was almost double what we were originally quoted. The house was set on our lot and was almost complete when we were told by the builder that the cost for the house increased by over {$12000.00} by email. I called and spoke to the owner who said he never admitted to locking in the price and would never have done that due to the market. The builder and us could not come to an understanding on the price increase and we had to add the increase to the cost of the house. We thought we would be able to because of the equity we had. So we talked to the lender and informed them of the price increase and were told that we were waiting on the recert appraisal and they didnt see any issues to add the increase. We went a couple weeks waiting on the appraisal and were informed by the bank when asked repeatedly they had asked for the appraiser to recert the house and the appraiser refused because there were no houses in the area to value the house. The loan processor informed us that they have never had this issue before and the vp of the bank told her they were going to file a complaint against the appraiseXXXX. I asked the lender how we are going to move forward. The lender responded saying they had to request for another appraisal. That appraisal came back at {$290000.00} which the lender asked for reconsideration and that appraiser came back at {$320000.00}. I called and spoke to the VP of the lender and we discussed how this could have happened and how to correct this. He said he would go after the appraiser that overvalued my house but he would have to get another appraisal and talk to his legal department and he insisted this has never happened to him before and that he has been in the business. Later on I sent the VP of the lender an email asking about the status and he informed me that he was going to get with an appraiser and he had to get with his legal to determine what to do. I was contacted by the lender and was informed that we had to go with a FHA loan to get the house closed. The appraisal came back at {$350000.00}, which is what we needed to close and we closed on the house. We could not include the price increase and we had to agree to a payment plan with the builder of XXXX payments of {$6000.00}. Our new payment for our house is over {$2500.00} a month. Our house payment now included PMI because of our loan to value being at 96 %. I have tried multiple times to contact the lenders vp about what they are going to do about this issue with no response. Since then I have filed a complaint with the appraisal board against the first appraiser and asked if there is another complaint filed by the lender and was told there was not. I believe I have been misled and lied to about all the issues with no resolve.