Refinancing Problems After Closing

by Bob from USA

I'm not usually asked about mortgage refinancing problems after a closing. But in the case of Bob and his wife, that was when their refinancing issues began. After emailing me, Bob was gracious enough to allow me to reprint this.


It is my hope that other homeowners experiencing the same dilemma will be helped by Bob's experience during his home loan process.

Bob's Mortgage Refinancing Problems After Closing

Hello Kate, I just refinanced and have a 30 year fixed loan at 4.8%. I am having problems with the lender so I am asking for your advice. Here is my first problem:

Mortgage Refinancing Problems After Closing
Our first payment of $1243.64 was due on April 1st. According to my online account info they received the payment on Mar 31st. According to my checking account they cashed my check on April 1st.

The problem is that they have only applied $345.00 of the $1243.64 to my mortgage payment and my online account shows that I have not made my mortgage payment for April 1st.

If I can't get them to process my payment by the 16th then I will be reported to the credit agencies and be charged a late fee. This has happened to others from the complaints I have seen online about the same company.

Refinancing Problems After Closing: But I DID Sign My Loan Documents

Here is the second problem: My 2nd issue is that they sent back copies of my 'Uniform Residential Loan Application' saying that we never signed them at closing. However, we did sign these documents prior to closing and submitted them to our mortgage broker.

I can actually see that someone use white strips to cover up my signatures and my wife's signatures on the application forms because you can still see parts of our signatures on the copies of the paperwork.

Also it looks like they removed some other info on the documents like our driver license info and I can still see part of a stamped date on the top a page 1 that they removed partially. Why would they be asking for us to sign this paperwork again?

Thanks for your help. My wife and I have excellent credit ratings (772-802) and have never missed a mortgage payment in 6 years but this one has us really worried.

Refinancing Problems After Closing: 1st Update from Bob

I have an update this morning after speaking to the lender about the two issues. They said my mortgage payment was suspended because two payments were made to my mortgage account recently which caused the suspension of my $1243.64 monthly payment.

Somehow $345.00 was paid towards interest on my mortgage account on April 10th and this payment came from closing in February.

Because they received two payments, $1243.64 on March 31 and $345 on April 10th, they suspended the $1243.64.

A very concerning fact is that they would sit on my mortgage payment received March 31st and not process it right away towards my account. The customer rep assured me she is going to resolve the issue within 24-72 hours from today. My payment of $1243.64 should be processed so it would not be late.

But if it doesn't get processed by Thursday then it will be late so I am still worried. Sincerely, Bob

Refinancing Problems After Closing: 2nd Update from Bob

As for the 2nd issue, I spoke to a post closing resolution specialist and she said that even though my wife and I had signed the original Uniform Loan Application and submitted it in January, we still needed to sign a 'Final Uniform Loan Application' at closing in February.

This paperwork was not present at closing for us to sign, so they eliminated our original signatures and dates from the January paperwork and they are asking us to re-sign the copies they have provided. I'm still leery about doing this but I guess I will.

The good news is that they are in the process of selling my mortgage to another bank and it couldn't be soon enough. Thanks Again, Bob

Refinancing Problems After Closing: 3rd Update from Bob

My mortgage payment was applied on April 13th, so it will not be late. Again thanks for taking the time to answer my questions. Bob

Kate Answers: Mortgage Refinancing Problems After Closing

***zz-portrait-left.shtml*** Dear Bob, It sounds like the two issues are already on their way to being resolved.

That is a good reason to smile!

But I still have something to add. My advice can be wrapped up in two words, Paper Trail.

Avoid Problems by Preserving Paper Trails

  1. Be sure to write out a chronology of events, keeping all documentation including canceled checks and bank statements.

  2. Write down the substance of all conversations with representatives including names, phone numbers and dates.

  3. Retain this information along with your refinance documents in a safe place.

Another Signature Request

Regarding the re-signature request, it is customary for most lenders to require signatures on a final mortgage loan application. This is generally executed at closing when borrowers sign deeds, notes and other legal paperwork.

Good luck and best wishes,


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Mishandled Refinancing
by: EJohnson

My home was refinanced in 2006 by one of the largest nationwide banks using a big title company. Now it's five years later and HUD has taken my IRS return due to an oversight in payment to them by the title company from original loan refinancing.

What can be done to recover my funds legally since it was the oversight of the title company and bank?

Note from Kate: I saw this happen over and over. Trying to get to the bottom of who is responsible though is like searching for one particular fish in the sea. Even so, here's what I'd do.

First off, go through your records for the Final HUD-1 Settlement Statement you received when the refinance closed. The HUD had to disclose the payment to the IRS. Hopefully the title company was detailed enough to add in an account number of some kind to verify payment.

You're in luck if you have this paperwork. Submit it to the IRS as proof of payment and request your money back.

Otherwise, you are in for an uphill battle because you'll be requesting your file to be pulled out of archives at the bank and title company.

I wish you the best of luck. If anyone else reading this has had the same experience, please add a comment with your solution. Thanks, Kate

PS Whenever you have debts paid with cash-out refinancing, make sure the HUD-1 references the debts with account numbers, for this very reason.

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You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

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