Consumer complaint received 2025-05-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: SGCP Holdco LLC
State: UT

Complaint narrative:
When we were going through this initial loan process, we had signed initial disclosures that we would be doing a loan that only required 20 % down with a 6.75 % interest rate. ( Purchase Price {$580000.00} = {$110000.00} down payment ). Within a week or so after paying for the appraisal fee that was non-refundable, we were then notified that the 20 % down payment program was not available anymore that we would be required to put down 25 % instead ( XXXX ). At this point, we felt forced to move forward because of the appraisal fee we had already spent and also the {$5000.00} in Earnest Money deposit that had already become non-refundable and now being required to come up with an additional {$29000.00}, which was not planned for and not easy to get. We sent every single document to them that was requested and even documents that we questioned why they were needed but complied. The appraisal came back shortly after and the appraiser had made mistakes on multiple areas of the report, most importantly labeling the Townhouse as a Condotel. With this being inaccurate, we asked the lender to get the report corrected because now the lender was saying that our interest rate was going to increase by .50 % or higher. In the meantime, I called 2 other lenders and had them review the appraisal and our loan situation, verified the incorrect information on the report, and was confused as to why my current lender was not willing to have the report corrected. At this point, I was not wanting to proceed with XXXX XXXX but I now have {$5000.00} in non-refundable Earnest Money, a paid and non-refundable appraisal, and less than a week before closing. Again, forced to move forward with them. Fast forward to Settlement Deadline. The underwriting department has still not completed their process, required a bunch of additional documents pertaining to a " Condo '', which the HOA is not able to provide, and the Title Company is not able to provide because the property is not a Condo, and this forces us to ask the seller for an extension on the closing date. The seller graciously gave us an additional 5 days. At the end of that 5 days, we are still in the same situation with underwriting and forced, again, to ask for an extension on closing. The seller is now very aggravated and required an additional {$5000.00} in non-refundable Earnest Money before they would accept the extensions, which we were forced to do. So now we have {$10000.00} in non-refundable earnest money on the line, {$750.00} non-refundable appraisal fee, {$20000.00} in new furniture that was purchased and sitting in our garage for the new home, an additional {$29000.00} on top of the original down payment that was disclosed and agreed upon, and my fiance, now wife, is extremely stressed and angry at the situation. Fast forward to the final closing date. Underwriting has yet again said that we were not going to be able to meet the deadline for closing and has given no explanation as to why. The sellers are NOT willing to extend again because of the multiple extensions they've done already, so I beg and plead to the lender and underwriter on what we need to do so that we can close and not lose thousands of dollars because of this process. Hours later I get a text and phone call from the Account Executive for the Lender saying that in order to get us to closing, they are requiring an additional 5 % down for a total of {$170000.00}, {$58000.00} more than we had agreed upon and planned for in the first place and now we are really backed into a wall and forced to do this or we lose XXXXXXXX XXXX XXXX. I asked why this was now being required and the response through text and also on the phone call was " that's just what we're going to require to get your loan done ''. No valid reason for this change, no real explanation as to why. This was truly a bait-and-switch situation. We also had to pay even more money to buy down the interest rate to what we were quoted before and that was an additional {$15000.00}. Against what we truly wanted and should have done, we were forced to comply so that we didn't lose all our money. This has created a huge financial burden, completed taken all of our savings, forced us to borrow money from family, created a HUGE stress situation for my wife because of all this, and we know this isn't legal or ethical. I know that after 2008 there were laws put in place so that this type of predatory lending would not be allowed anymore and shouldn't be allowed towards us or any other borrower out there. I am not sure what legal recourse we have or what can be done about this but the {$60000.00}, for one, was not money that we had to use for buying this property and has created an incredibly difficult financial burden on us.

Please help and let me know what can be done or what direction I need to go in to hopefully try and find some type of relief from what we've had to go through. I greatly appreciate your time with reviewing our matter.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation