Consumer complaint received 2021-08-09
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PRIMARY RESIDENTIAL MORTGAGE (MD)

In XXXX of XXXX I was in the process to purchase a home in XXXX Pennsylvania. An initial appraisal was completed and came in XXXX above asking price. About a month later I was told a second appraisal was necessary due to PA law, because the house was in the owners possession less than a year. The second appraisal came in {$40000.00} less than the asking price. I reviewed the appraisal and it seemed to be completed and conducted professionally. The appraisal company was selected by the lender, Primary Residential Mortgage in Maryland. The lender and real estate agents were upset with the result. I stated my concern that perhaps the house was not worth the asking price. The agents and Primary Residential Mortgage decided to order a third appraisal which then conveniently came in at XXXX above asking price. 

During this time waiting for the third appraisal and reviewing the second- I realized the house had a retaining tank for sewage and water, and not an actual septic tank. The monthly costs for servicing this were going to be $ XXXX {$800.00} per month! This was obviously unacceptable and I made it clear that this was not disclosed clearly in the contract and disclosures. It was made to appear that the property had an actual septic tank with drain fields, which it did not. I decided to terminate the contract. Since that time I was treated with animosity and my real estate agent did not contact me since, and offered no guidance whatsoever. I honestly felt the lender and the two agents were working in their own interests and not mine. My loan officer XXXX XXXX was helpful but also had to remain impartial so there was not much she could do in terms of getting involved or offering advice. I terminated the contract which stated the seller was paying for closing costs. I was never notified about being held accountable for any additional fees. 

A month later I decided to purchase a house in West Virginia using a new real estate agent and new lender. A month later, My new loan officer notified me that the previous lender ( Primary Residential ) was holding my previous FHA loan as open- and I could not apply for a new loan when one is already active. I called and emailed XXXX XXXX the senior loan officer as well as other employees to resolve this. I was told by Primary Residential that they contacted my real estate agent and were told I never signed a termination contract with the realtors and that was holding things up- which was false. I signed a termination addendum on XX/XX/2021. I immediately provided a copy of the signed termination addendum and was told the FHA loan would be cancelled. 

A week later, my current loan officer contacted me again, and now stated that Primary Residential Mortgage had come up with another reason to refuse to cancel the loan number, stating I did not pay for appraisals. I was never sent an invoice for any appraisals, and this was now almost a month and half since I had terminated the previous transaction. At no time was anything communicated to me that needed to be resolved. Prior to terminating the contract, I specifically asked what I would be responsible for, and was told nothing except perhaps the XXXX deposit which could be under dispute with myself and the seller, and was not related to the loan itself. I understood that, but nothing was left incomplete with the lender. Under the contract the seller agreed to pay all closing costs, and the appraisal was listed under those closing costs. Regardless, had this issue been a legitimate concern and not a last minute attempt to cause me hardship, It is reasonable to believe I would have been notified of the bill. Instead, this scenario is clearly created out of spite. 

I feel this was being done out resentment to hinder my new house purchase with a new lender. As of today 's date, my request has not been handled, and I am being told it will take 3-5 business days, even though I submitted the first request on XX/XX/XXXX and it is still not completed. It simply can not take two weeks to cancel a loan that has been terminated a month ago. Considering how the lender was trying to manipulate the appraisals to get the result they wanted without my full understanding of the process, and the treatment I received afterward when deciding not to proceed, it appears the FHA loan being held as active and the various fabricated reasons to refuse to close it despite the contract being terminated on paper on XX/XX/2021 is a deliberate attempt to cause me difficulty with my new transaction going forward.