Financing new home in park Calif

[adrianne]

We have purchased a new manufactured home to be placed on a Federal government employee park in California. The financing comapny has had us jump thru incredible hoops, and we have met every condition so far. The latest was when we went to to the Title company to sign the loan docs. The loan company is from out of state, They would not accept the notary that the Calif title company provided because it was on an additional (6th) page, saying that the contract is 5 pages and adding a sixth page is an illegal change to the contract. TheTitle comapny would not notarized the the out of state document (page 5) because the wording is not what California requires by law. We are in the middle of this standoff. We also think it is very strange that the finance company won't fund the loan until the house is ready to live in. I thought that the escrow company holds the funds until the house is ready to move into. We had to put our down in escrow- why can't the finance company do the same? The house is delivered, we are good for the payments. Is this jerking around by the finacnce company normal or even legal? Is there a consumer watch group that I should contact?

[rmurray]

For home only finance...all lenders require the home be set up prior to funding....escrow accounts are not common and seldom if ever used..

The title company and lender should be able to work out the problem...possibly 2 notary statements would work...Notary only guarantees the lender that the signatures are actually you...Notaries are not party to any other aspect of the contract..Assuming the lender is licensed in CA...they surely have proper contracts for your state...It sounds like the closing agent is causing the problem..

[adrianne]

Thank you for your prompt reply - having never bought a home before it is a jungle of prcocedures to go through and you're never really sure if things are going the way they are suppose to.

There has been this push to get the loan funded in escrow in order to protect my interest rate. Once my contract is signed - can they change the interest rate before funding the loan? The home is delivered and the setup crew are hard at work trying to get the T&T and paint carpet. skirting etc, done as fast as they can.

[rmurray]

No they can only change the rate if the time goes beyond the credit committment...At which time they will re-approve your loan at the current market rate...Market rates have actually gone down in the last few weeks...not up..

It is smart to have them hold the money until finished...but..most likely if you told them the home was delivered and set..they would fund now...of course that would mean the dealer would have all the money...and might not be in a rush to finish then..

Good Luck

[Rschmitt]

FYI, under CA law, every new home must be sold through an independent escrow company. On home only loans, lender typically funds upon issue of Certificate of Occupancy (issued upon final inpection by governing jurisdiction). Homes on private property can fund either on issuance of Manufacturer's Certificate of Origin and receipt of same by escrow company or upon delivery to site depending upon lender.