Alcova Mortgage, LLC

Additional Notes

Complaint: In March 2012, I sought the help of **** ********* of Alcova Mortgage to help me secure a mortgage loan on the property located at **** ********** ****, Bedford, VA. He had been recommended to us by a local resident. We were new to the area and decided to try this man's recommendation. The sales contract was established in February 2012. **** ********* tried to obtain two different types of loans; an FHA loan through First Mortgage Company in March and a VA loan processed in May 2012. FHA turned down the loan based on the fact we lived near a cell tower (which was here before the home we were trying to buy). Mr. ********* could provide no reason why the cell tower was a problem with the FHA but proceeded to recommend we try the VA. He assured us numerous times there was no problem at all with our credit. We own a home in ***** ******** currently and have never experienced a problem. Mr. ********* apparently received word in June or July that the VA was turning the loan down for the same reason FHA did; the cell tower. But he failed to call us with this news and I had to seek the help of a manager in the Richmond office to track down the results of the VA application. I could go on about the lack of Mr. *********'s professionalism and the stress he has caused us. He was impossible to try to communicate with. He told us numerous lies and strung us along endlessly. But my real complaint is today is the 20th of August and I still do not have the refusal letter, or any documentation explaining 1) the loan was turned down by the VA and 2) for what reasons. The selling/listing agent has tried to assist us by requesting the letter for her file. As you can guess these people are also waiting anxiously for this letter so they will know how to proceed. We made our move here from ***** ******** on April 1st on the word of Mr. ********* the loan would close in April. I have had to pay five months of rent which is wasted money that could have been applied to the mortgage. I can't get this company to respond.

Desired Settlement: I would like the BBB to try to get us a copy of the denial letter given to Alcova Mortgage from the VA. I would like this to serve as a formal complaint against Alcova Mortgage and **** *********. I feel he owes us money for the second appraisal we paid for when **** said it was required again. We gave **** 500.00 for each of the appraisals. **** told us this 500.00 for the second appraisal would be credited back to us at the closing of the loan.

Business Response: I am writing in response to the complaint filed by ****** ******.  Mr. and Mrs. ****** were attempting to purchase a Manufactured Home that was adjacent to a Cell Tower.  ALCOVA Mortgage does not lend funds on Manufactured homes so we had to attempt to find a wholesale broker outlet that would be able to underwrite and approve the loan.  Though Mr. and Mrs. ****** were able to get Credit Approved for an FHA mortgage—the wholesale company that we sent the loan to for underwriting—***** ******** Mortgage Corporation declined the loan due to the homes proximity to the cell tower.  It is the lenders responsibility to mail out a denial letter to the ******’s and in this case that was sent from ***** ******** and I have attached a copy of that denial letter. Upon this loan being denied our loan officer—**** ********* rather than giving up on the loan attempted to find another avenue for Mr. and Mrs. ****** but was unable to find another wholesale lender that would we could send the loan to since it was a manufactured home.  There was never another VA appraisal ordered because it would have required additional funds from the ******’s to do so and without a suitable lender that was willing to do the loan this would be a waste of money for Mr. and Mrs. ******.  **** did continue searching and looking for ways and new lenders that could do the loan, but his search was unsuccessful.  Though we tried very hard to get the ******’s financing it does appear that our communication to them could have been better about the search and the lack of success we were having in finding a lender to be able to do this loan.  I have gone over this with our team and Mr. ********* and are willing to refund the clients their appraisal costs. I have left a message for Mr. and Mrs. ****** and will go over this with them when they call me back.  We wish that we would have been able to find the ******’s the financing they were searching for.  They are very credit worthy individuals, but in this case the property type (manufactured) and its proximity to a Cell Tower were issues that we were never able to overcome. Thanks ***** ****** –(Owner)Direct:   ###-###-####Mobile: ###-###-####  

Consumer Response: Alcova Mortgage knew from the beginning that we were purchasing a Manufactured Home. **** ****, our Realtor, informed Mr. ********* that it was a doublewide. Mr. ********* never informed us that his company did not lend on manufactured homes. If he had been up front with us, we would have applied elsewhere. We were constantly told, as was our real estate agent, that there was no problem with the first loan-- that everything was a "go." We were moving to the Bedford area from South Carolina. We were scheduled to close the last Friday in March 2012. We were driving to Bedford and were told the loan had been delayed but "most likely" would close on the coming Monday or Tuesday, no later than Wednesday. The Seller was gracious enough to allow us to move in since Mr. ********* continued to indicate there were no problems, that closing was imminent. After waiting months, we were told the loan had been denied due to the fact a cell tower was on the adjacent lot. At that time, we thought it best to seek financing elsewhere, but since Mr. ********* had all of our paperwork and insisted he could make it work, we thought he could get the loan through quicker this time. We applied for a VA Loan and paid for a SECOND APPRAISAL of which we have a copy. (so Mr. ******'s reply about us not paying for a 2nd appraisal is not true.) We were told again by Mr. *********, "no problem, we are going VA." We kept waiting to hear from Mr. ********* about the status of our loan. When we could not get him to contact us, we called the Alcova Richmond office. We were told by the manager that VA had denied our loan. Our Realtor called Mr. ********* and asked for a copy of the denial letter to forward to the Seller and to give one to us. She has made numerous requests, as we have, and has not received any denial letter nor response (other than to say he will email it). According to Mr.******'s email, the 2nd appraisal was never sent to VA. We are very confused by this as we were lead to believe that Mr ********* was working with VA all along on the second attempt to secure financing. Are they saying they lied about that and they never applied to the VA? If you need a copy of both appraisals, I can provide you copies of them.  Our real estate agent contacted the VA office in Roanoke to ask about their policy on cell towers. She was told that as long as it was not on the property being purchased, VA did not care. He told her he needed the denial letter and he would investigate as to why it was turned down. The VA spokesman stated that in no way was the loan denied because of the cell tower being on another property. We do expect full reimbursement from both appraisals, a copy of any denial letter, and an explanation about whether our loan was actually submitted to VA or not. We feel we have been poorly represented and do not plan to let this drop until we know the answer to our questions and receive the payment for both appraisal fees. In closing I would like to add that the message this "owner" claimed to have left on our phones with this offer of reimbursement of fees was never left on our phones as indicated. Regards, ****** ******  

Consumer Response: The original appraisal copy is attached. The cost of this appraisal was $525.00 and was paid for in advance. There was also a foundation inspection conducted  at the cost of $360.00 and was conducted by ********** ********** ********. The original date of the sales contract was 2/19/2012. The second appraisal was paid for in advance also at the cost of $500.00.  I took the copy of the second appraisal to the real estate agent for the sellers so she could have it as proof of denial. She has this document and has been in touch with the VA regarding the appraisal and they claim the number assigned is an FHA number and not a VA loan number. This makes me think they did get the second appraisal but sent it to the FHA instead of the VA?  I have called her this morning and I have asked her to scan it and forward me back a copy so I can forward it on to you. She was out in the field showing a property and I'm sure she will do that as soon as possible. When I get it, I will forward it to you. Thank you for your assistance. ****** ** ******

Business Response: Additionally, I would like to add to my comments below that I am always sorry when we can not find a loan for out clients and though we were looking for a solution to this problem with the property we should have communicated more thoroughly and that is why I authorized a check to be cut and sent to the ******’s residence yesterday. If the ******’s would like to call me to follow on anything related to this loan they are more than welcome to do so at the contact information listed belo. Thanks, ***** ******  I apologize for any confusion. Our first attempt at the FHA financing required a second review appraisal to be ordered due to the property type. There was never a VA appraisal ordered since we were not able to locate a lender that could do the loan.We have already mailed out the check for our clients for the cost of the second full appraisal since we felt that was a fair compromise since the second one was ordered after the wholesale lender we were using required it. There was no way for us to know there would be any issues with out receiving the first appraisal back. Appraisal fees are third party costs and ALCOVA is willing to absorb the cost of the second appraisal to help these clients out.Thanks ***** ******

Consumer Response: I am attaching a copy of the second appraisal for your review. I'd like to be clear that this agent implied as well as the Richmond Office Manager that it was the VA who turned us down the second time and for the reason of the cell tower. I have paid a total of $3150.00 in rental expense I should not have had to pay. I have spent over a thousand dollars trying to purchase this property by paying what this mortgage broker required me to pay. The way I see it, this appears to be the most unscrupulous mortgage broker I have ever dealt with. They told us blatant lies and we trusted Mr. ********* and believed he was truly telling us the truth.  Now, we have to start all over from the beginning with another mortgage company who processes VA loans.  The resolution ideally would be to be reimbursed for our expenses.  Short of that, I would like the public to be warned about this company. We are not mean or vindictive people. We truly felt we were taken advantage of.  By now, we are aware they lied about the VA and they never applied to them.  But I have attached the appraisal they claimed was used for the "VA loan".   Regards, ****** ******

BBB's Final Determination: After reviewing the position of all parties, BBB determined that the business made a reasonable offer to resolve the complaint. However the consumer did not accept the offer.