Loan Type Change

My husband and I purchused our home through FHA with a 1 yr arm variable interest rate. All the documents we signed were FHA, we have a FHA loan number and the funds for our home came from an FHA source. When we got into trouble with the mortgage I tried to get assistance. I was told by FHA that my loan was never registered by the mortgage company so they couldn't help me. I couldn't get conventional loan assistance because my loan was FHA. When I spoke to the mortgage company they said it was never FHA so I filed a dispute with them. I have heard nothing. My question is simply is this legal? Can I sign all FHA loan documents and have a FHA loan number and not be FHA? I feel like they did an intentional bait and switch and I'm sufferring for it. Is there any recourse?

Also I bounced a mortgage check in Jan of 2006 and it was just reversed Jan 2008. Not for one payment but two. I was informed that just $153 would be applied to my mortgage and the additional amount over $800 would be applied to attorney fees. What attorney fees? This was 2 years ago. Can this be done and if so don't I have the right to a written explanation?

You need to refer to your closing documents, in particular your note or mortgage. Unless there's a three digit number, followed by a dash and then 7 numbers, this wasn't an FHA mortgage. FHA case numbers are assigned during the processing stage & remain with loan for the life of the loan. If you don't see a similar type of number usually found in the upper right corner of your note or mortgage, chances are you didn't obtain FHA financing. And unless you were given a commitment letter upon approval that clearly stated FHA financing, you weren't guaranteed anything. It was your burden at or on before closing to carefully check the closing documents, or have your attorney present to do the same. Lenders are under no obligation to "guarantee" a certain type of mortgage, though most will do their utmost to provide the type of financing you're looking for. They're only bound by law to restrict certain fees to a certain percentage and to completely disclose all figures to you the buyer prior to closing .. before you signed the closing documents. It's probably best to have an attorney review everything now..your preliminary docs, application paperwork and the final closing docs as well. He/she should be able to show you that possibly you may have applied for FHA financing and where any changes occurred. (Usually during the processing of your loan.) It was entirely possible you didn't qualify for HUD financing; the loan type was probably changed at that point & closing docs were changed accordingly. They were presented to you at closing .. again, it was your burden to check them carefully before signing. I find the term "1 yr FHA Arm" a bit of a "red flag"..while they certainly DO exist with certain restrictions, more likely your loan was converted to a similar conventional product somewhere along the line. Impossible to say accurately without a thorough review of all of the documents you signed.

Either way, your lender isn't responsible for your "suffering," as you put it. If you were/are unable to make payments, it's encumbant upon you to remain in contact with that lender, and not FHA, at the time you were in trouble. Have you contacted that lender to inquire about an "in house" streamline refinance? Many have programs in place, particularly now with the national epidemic of "arm adjustment" foreclosures exploding across the country. It may be in their best interests as well to waive escrows and simply roll the loan over, particuarly at a time when interest rates are so low. (Just a suggestion.) If not, seek out a more reputable lender .. again, the competition is such that you should be able to find a good one willing to refinance that adjustable rate into a more manageable fixed one. It's a given you demand a commitment letter up front and carefully scrutinize all documents, particularly at closing, should you decide to pursue that avenue.

As far as the bounced check, yes by law, you ARE entitled to an itemized accounting of the charges involved. I'd suggest you put your request in writing; if you feel the attorney fees, etc are excessive, you again may want to consult an attorney for guidance (depending on the dollar amount.) Regardless, again, I'd suggest that however your lender chose to spend your money, they provide written statements indicating the account & past due is current. (Hopefully they've also provided that information to the credit bureaus as well, but you may want to follow that one up on your own to be sure.)

Hope this helps. Good luck.