Consumer complaint received 2016-10-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Application, originator, mortgage broker — 
Company: Gulf States Financial, L.L.C.
State: FL

Complaint narrative:
A XXXX XXXX XXXX who owns XXXX XXXX XXXX XXXX, XXXX knowingly committed Mortgage Fraud by misleading me into refinancing my VA loan to a FHA with the intent to purchase another home with the newly released VA certificate. He knew that the new house I wanted to purchase was only XXXX miles away from the newly refinanced FHA loan and he made both loans to be my Primary residence. 

On my Refi loan, I was told that the market rate for my home was around $ XXXX and I owed $ XXXX on the home. So XXXX told me I would n't need to come to the closing with any money, matter of fact I would be getting money back if I would take a hire interest rate. So he sent me XXXX different interest rates to choose from. But I was not to make the decision until the house was appraised. 

XXXX made the arrangements with the XXXX to come an appraise my home, the XXXX appraised my home at $ XXXX. That appraisal was about XXXX to XXXX below the market value of the last few homes that were sold in my area. This was an unforeseen mishap for me, but as I look back, it looks like it was intentionally done. 

Now because I was changing by VA loan to a FHA loan, I would have to come to the closing with up to $ XXXX just to get to the only 97 % financed threshold, plus additional monies for the closing cost. So XXXX gave me the XXXX interest rate scenario were if I would pick the XXXX interest rate I would get enough credit points to cover the additional closing cost. This would also drive my monthly mortgage rate to {$1600.00} ( XXXX FHA ) from my old VA rate of {$1500.00}. 

I had to go forward with this because on XX/XX/2016 I signed a contract to purchase the new home with the anticipated refi of the old home, releasing my VA certificate to use on the new home. XXXX also so gave me XXXX VA rates for the new house purchase. 

On XX/XX/2016, I had the closing of the XXXX, yes I had to come to the closing with $ XXXX. The only problem that I did n't notice in this closing was, XXXX had the XXXX set up as a Primary home, but he knew that I was renting the home out to my XXXX step daughters, so it should 've been setup as a XXXX investment home. 

Now XXXX arraigned for the new home to close on XX/XX/2016, but this is where things started to fall apart. We started to lose communications with XXXX between the third week of XX/XX/XXXX on. My realtor and I could not reach him for over 2 days once, so I reached out to the lender who he selected XXXX XXXX lending ). They gave me a contact number of the go between person of the loan. His name was XXXX, his phone number was XXXX and email : XXXXXXXXXXXX. But he never returned my call or emails, but after the first time I called and left him a message, XXXX reappeared on the seen. 

Then leading up to the last week before closing XXXX XXXX stop responding to our calls, emails, and texts again. Then all of a sudden he started responding on the Friday before the closing ( XX/XX/2016 ) that he was working hard with the lender and he could not tell me if the loan was going to close on Monday. Needless to say we did not have a closing on XX/XX/2016, matter of fact we could not get in touch with XXXX on the day of the closing.

Company public response: Company disputes the facts presented in the complaint
Company response to consumer: Closed with explanation