In August 2007, I attempted to purchase a brand new 2006 Manufactured Home which was located in Dominquez Hills Estates at 19009 Laurel Park Rd., #503, Dominguez Hills, CA 90220(adjacent to Carson, CA).
I was told the house was $195,000.00 plus an additional $2,500.00, if I wanted an air conditioning. The agent told me that I needed to pay $400.00 separately to an appraiser, which I did upon signing the purchase agreement and I also left a $5,000.00 deposit. My total down payment including the $5,000.00 was $43,349.00. I asked if the appraisal came back less then the price she was quoting, would there be an adjustment for the price? I was assured that the home value was $195,000.00.
The financing was to be arranged by Advantage Homes, after several attempts with their sources, they were able to finally acquire financing for me but with a few exceptions. The lender (Financial Freedom Loans, Inc.), would only lend me $120,000.00 at an interest of 15%, with an annual yield of 18.239%!!
In addition, they now wanted me to put a downpayment of $75,000.00 down. I now had to pay a loan origination fee of $6,000.00, a mortgage broker fee of $1,200.00,a processing fee of $300.00, Wire Fee of $25.00, Underwriting fee of $495.00, Document Preparation Fee of $350.00 and HCD fee of $92.00. Plus my loan would be for only 36 months and I would have a balloon payment of $117,964.16. Most of my payments would go to interest only, for a total amount of $62,089.41.
I started to walk away from the deal but I have been living in an apartment for over 17 years, I so wanted to purchase a home for me and my children. I have been a single parent for almost 3 years now. I did not expect to be involved in this insaneness!!
The deal was contingent upon two things, First, securing financing and second getting approval from the mobile home park management. When I completed my application and turn it into the manager. She looked at it and smirked "I have already denied five other people for the same home!!" I did some digging around and found sure enough the home had been vacated over 16 months! And yes, she had denied five people - all of whom were of minorities!
The manager was using a very strict "credit requirements" to qualify prospective tenants in the park. Including requiring that your income must be at least "33 1/2" the amount of the monthly expenses.
After looking up the California Civil Code, Div. 2, Part 2, Chapter 2.5 "Mobilehome Residency Law" which governs Mobile Homes and set the rules and regulation for them. This is clearly a violation!! Section 798.74 of the code which states that "Approval cannot be withheld if the purchaser has the financial ability to pay the and charges of the park and the management has determined that, based on purchaser's prior tenanties, he or she will not comply with the rules and regulations of the park. The purchaser has to be able to pay the rent and charges of the park by documenting the amount and source of his or her gross month income or financial support.
I provided the management with my check stubs, a credit report, bank statements. My current income exceeds this requirement. I have sufficient income to pay the park space rent of $852.00 and $100.00 utility charges. The management is also requiring that the monthly mortgage be included in the "park charges", when the mortgage is clearly a charge from an outside entity or third party.
Now, I paid an additional downpayment of $75,000.00 on September 29,2007 and another addition of $6,787.00 on October 8, 2007. I was told by the Real Estate Agent that my escrow would close on October 31, 2007 and for me to be available to sign the loan documents on November 1, 2007. On November 1, 2007, the document had not yet been prepared. I was able to sign on November 6, 2007.
During the "escrow period", the real estate agent advised my that the debit ratio of 33 1/2% wouldn't not apply to me and that her regional manager was meeting with the park owner to discuss changing this policy and for me not to worry. I would be approved. I dropped off my park application to the real estate agent, (again), on November 6, 2007 and she dropped it off to the manager of the park.
In the meantime, I gave my notice to my landlord, I brought some household items, I arranged to have a moving van and crew to assist me with the move.
When I asked for my keys, I kept getting the run around. On November 9,2007, I received a letter from the park management denying my tenancy at the park!! When I contacted the real estate agent, she told me I needed to contact the park management and demand an interview! I became very upset. Why am calling anyone when you told me it was okay?? I still got the run around.
Finally, I was told that it was nothing they could do. I told them I wanted my $86,787.00 by Friday, November 16, 2007.
Well, I got my money back but they took out a $300.00 processing fee, a $25.00 wire fee, 495.00 underwriting fee, $350.00 Document Preparation fee, $500.00 interest from 11/6/07 -11/15/07 for a total of $1,670.00 to Financial Freedom Loans, Inc.
In addition, they also took out $75.00 Loan Sign up fee, $25.00 Delivery charge, $35.00 Wire Transfer fee and a $50.00 cancellation fee, for a total of $185.00 to Express Escrow Company.
It is not my fault that the deal was cancelled. They failed to meet the escrow contingencies as stated on the purchase agreement. Also there is nothing in the purchase agreement that states that I would liable for any fees.
When I asked Advantage Homes, (since the cancellation was related to conditions beyond my control), for my money they held. They refused. So now I have to take them to small claims to get the fees back they charged me.
Also, I was illegally denied residency into park and I got the worst loan deal in the world. I am so distaught. I cannot believe that this is happening to me. I also found out that all of the people that were denied entry into the park prior to me, were denied for the same reason.
When I asked to see the appraisal, they promised to send it to me but it was never provided. They have never prove to me that the home was worth the $195,00.00 they were asking for!!
Send someone, one of color and one white, if you think I kidding.
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