Consumer complaint received 2022-11-15
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — 
Company: WATERSTONE MORTGAGE CORPORATION (FL)

I'm a first-time home buyer and decided to go the route of first-time home buying down payment assistance program with my XXXX XXXX agency for assistance in this process. XXXX XXXX had several requirements, and XXXX was to complete the pre-approval home loan process with an approved lender from their approved lender document list. I contacted XXXX XXXX with XXXX XXXX XXXX  XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX, FL XXXX from the counties approved lenders list. I provided XXXX with all my personal financial information, and he advised me that day on that phone that he would be able to get a loan approval and it would only cost me out of pocket approximately {$1500.00}. XXXX XXXX expressed that the down payment assistance program from the county required a {$1000.00} towards the home loan, which I was aware of. 
Being that I'm unfamiliar with home buying and did not have a realtor at the time. XXXX referred a XXXX XXXX XXXX with XXXX XXXX XXXX. Throughout the beginning of the process XXXX was very communicative. Constant communications with XXXX during this process after finding a home and placing an offer on a property. The home was selling at {$270000.00} and per XXXX XXXX advice I was told to put {$5000.00} in escrow and overbid ( {$280000.00} ) on a home to ensure that my offer would be accepted, even though the market was shifting into homes being on the market longer. Before I agreed to these terms and put the offer in, I spoke with my XXXX XXXX XXXX  XXXX XXXX, with XXXX XXXX. I expressed to XXXX that I wanted to make sure this was the right decision because it took me a very long time to save the {$5000.00}. XXXX confirmed it was the right choice if I wanted to get the home over any other bid, he advised me that the {$5000.00} escrow money would be used towards the down payment assistance payment requirement and any other closing costs. I was in constant communications with XXXX during the final loan approval process because of the constant misunderstandings between I and XXXX XXXX XXXX XXXX XXXX, on several items she was requesting. XXXX, continued to assure me that this was normal in the loan approval process even though I believed the record keeping was negligent. 
I was required to pay {$490.00} good faith deposit and home inspection upfront during this process. I received the home inspection paperwork from the agency and expressed all of my concerns with the realtor. Its my understanding some of the concerns with the seller were but not all. During the repairs of some items, I appeared to the home location and spoke with a XXXX XXXX working on some items. I expressed again my concerns and thanked him for completing these tasks. There was no other time I reentered the home to confirm the items were done but I was advised verbally by the realtor that it was completed at that time. 
XXXX XXXX touched down in Florida and caused a lot of property damage. I requested the Realtor to provide me with a walk through of the property to ensure theres been no damage to the home because of XXXX XXXX. The Realtor schedule an appointment and we did a walk through, I immediately noticed that several of the requested items for repair or installation was not completed. I expressed this to the XXXX, XXXX XXXX, and she stated that it was past the inspection period and there was nothing that can be done. I immediately contacted XXXX XXXX about my concerns, and he expressed why arent you buying a home warranty. I explained to him that these items should have been completed during the inspection process. All my concerns were negated even though some were fire hazards. I received notice that the finalizing of XXXX XXXX XXXX XXXX XXXX XXXX  was near and that theyd only be taking out the {$1000.00} from the escrow for the down payment requirement. 
The appraisal was scheduled to be completed being that we were nearing the end of the home loan process. The appraisal came back {$280000.00}, over the price I offered several XXXX  of XXXX  of dollars over the number of other homes in the area. I reviewed the appraisal documents and found that XXXX of the homes utilized in the appraisal calculations were inaccurate home sales and fraudulent. I expressed my concerns about this overpricing to XXXX XXXX & XXXX XXXX. I requested a follow-up with the XXXX in re to the overpricing of the home and was denied this request. 
Again, several conversations later with Underwriting XXXX XXXX XXXX XXXX advised me I needed roughly {$9000.00} to close the loan in addition to {$30000.00} of down payment assistance. I expressed to XXXX I exhausted all of my savings, XXXX, treasury bonds to get through this process and had nothing left to give. I explained to her that we can end the loan processing at that moment because I had no additional funds. She advised me to speak to XXXX XXXX about this and to not make a quick decision. XXXX assured me not to worry because any additional monies needed would be coming out of the down payment assistance programs. I again reiterated to XXXX that I had no additional funds. 
Now we are days from closing, and I requested closing documents on Monday XX/XX/22. XXXX advised me that the documents are not completed, and he would give me a call later in the day. XXXX began the conversation requesting roughly {$7000.00} from me for closing and I explained to him there was nothing left to give. I reiterated to XXXX all of our previous conversations and how he assured me there would not be any additional monies needed at closing. XXXX began, what I felt was threatening me that I would lose my escrow deposit if I did not come up with this additional money. I explained to XXXX I was not sure how {$30000.00} in XXXX XXXX Assistance {$5000.00} in escrow, and over {$10000.00} paid towards my credit cards in the past several months was not enough to purchase a {$280000.00} home. XXXX again began threatening my escrow deposit will be lost if I dont come up with money XXXX dont have. Later that evening XXXX XXXX contacted me and advised me to take out cash from my paid credit cards to come up with the additional monies needed for the closing. I told her I would not commit fraud and go into more debt to close on a loan if I can not afford it.