Consumer complaint received 2025-08-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: Better Mortgage, Inc.
State: IL

Complaint narrative:
I applied for a conventional mortgage with Better Mortgage for a property under contract at \ {$220000.00}. The first appraisal classified it as a 3-unit valued at \ {$220000.00}, which matched its long-term use and zoning. Better Mortgage staff pressured the appraiser to downgrade it to 2-unit + legal ADU at XXXX {$210000.00} despite written confirmation from zoning official XXXX XXXX and property records ( XXXX XXXX residential ) supporting a 3-unit classification. The appraiser claimed she spoke to the city, but both the assessor and XXXX XXXX denied this. She said she would only change it if the lender instructed her to. 

I have at least three versions of the appraisal with unexplained changes to classification, value, and features. Every version including the original still has photos labeled Units 13. The original report used bad comparables : active listings, wrong addresses, and rentals unsold for years. During the Reconsideration of Value, the appraiser added comparables # 68 but left the value the same, ignoring multiple recent sales over \ {$260000.00} identified by my realtor and the listing agent. Comparable # 5 had the wrong address. Rental income was misrepresented basement rent listed as \ {$0.00}, even though past leases showed \ {$700.00} for the first and second floors and \ {$350.00} for the basement. Actual comps my realtor pulled showed \ {$1100.00} for the first and second floors and \ {$700.00} for the basement. 

XXXX, XXXX  manager, told me this bad rental income could mean I dont have a loan at all. My cash-to-close, originally \ {$23000.00}, jumped to about \ {$50000.00} because of these appraisal issues. 

The appraiser did not justify the value of the 6-car garage. In the first report, she compared it to street parking. In the XXXX, she added some garages to comps but kept the value exactly the same. Better Mortgage claims professionals review every appraisal for accuracy, yet they let obvious mistakes go through in multiple versions without correcting them. 

My realtor repeatedly called and emailed XXXX, the loan coordinator, more than ten times with no response. Instead, he would text me directly at work, even though my realtor was supposed to be the main contact. This forced her to contact the appraiser herself, who told her it was her first job with Better and she wanted to do a good job. I tried to use the original appraisal, but XXXX said it was invalid because newer versions existed. 

A week before closing, Better Mortgage suddenly required a second structural, waterproofing, and mold inspection, even though the first professional inspection cleared the basement. The second contractor confirmed there was no mold, just old water stains, but I still had to pay for two inspections, delaying my closing even further. 

XXXX, the XXXX XXXX XXXX, was unprofessional. When I mentioned XXXX XXXX guideline XXXX, which allows classification based on what best qualifies the home, he dismissed it. He told me, before we play the blame game you should be asking questions, not making assumptions or complain to XXXX XXXX, and claimed XXXX should handle the issue, even saying XXXX  doesnt go into ADU/zoning revisions. 

When I told XXXX I planned to file a complaint, he became aggressive, saying I would only get the appraisal fee back. The assessor told me the lender ultimately decides how the property is classified and that I could change it to a 3-unit after closing for property records. 

Because of Better Mortgages actions pressuring the appraiser, using flawed comps, ignoring sales data, undervaluing rental income, failing to justify garage value, requiring redundant inspections, letting professional reviews miss obvious errors, and allowing staff to speak unprofessionally and aggressively the seller walked away, I lost the property entirely, and they now want to keep my earnest money deposit. I also overpaid cash-to-close from \ {$23000.00} to \ {$50000.00}, paid \ {$1800.00} for insurance in full, and incurred unnecessary inspection fees, all while suffering financial and emotional damages. 

I have proof : recorded calls confirming the 3-unit classification and \ {$220000.00} value, emails and texts with XXXX, XXXX, and XXXX, all appraisal versions with Units 13 labeled, rental and sales comps, zoning confirmation from XXXX XXXX XXXX both inspection reports, and records of missed calls/emails. 

Better Mortgages conduct appears to violate FIRREA, USPAP, ECOA, RESPA, CFPB UDAAP, XXXX XXXX  appraisal independence requirements, and conventional loan guidelines.

Company response to consumer: Closed with explanation