Everbank / Everhome Mortgage – Scam / Predatory?

[Justin618]

My younger sibling is in the process of buying his first home (he’s well qualified – 20% down, PITI less than 30% of income, stable job, plus he is in a low-cost-of-living area) --- I have no concerns regarding him overextending himself. He’s getting close to making an offer on a house.

I am a little bit concerned over his intended lender --- Everbank / Everhome mortgage. He says they consistently quoted low rates and low closing costs – he’s already done a pre-qualification with them.

Does anybody have any experience with them?

I am hoping somebody can vouch for them or give me some assurance.

Should I try to steer him to a bigger, well-established lender? (Wells Fargo, BOA, Citi, USAA) or in your opinion does it not matter much?


I have my own thoughts, but I want to hear yours first.

Thanks, much appreciated.
Justin

[fluffyistaken]

I refinanced with them in 2005 since they were giving best rate (5% fixed for 30yrs). Had absolutely no problems and my loan was promptly sold to Citi. Best of luck

[Grt2bOutdoors]

I've used them before as well, great service, couldn't find another bank to beat the rates then. Conservatively run, outfit.
Large lenders may require higher rates/ higher closing costs.

[Pangloss]

I once had a savings account with Everbank that was denominated in Euros. I didn't have any problems at all with the company. The percentage they skimmed off for the currency conversion was a little higher than I would have liked, but I'm used to rock bottom expense ratios with my Vanguard account. If I remember correcly, I first learned of the Everbank in a Wall St Journal article that favorably mentioned them.

[roymeo]

I'm sure that Wells Fargo, Citi, BOA, USAA (and all of the banks which they now own and went under different names) have never ever practiced discriminatory or predatory lending!

</sarcasm>

roymeo

[tokyoleone]

Everbank is a legitimate, online-only bank and FDIC insured. One reason their rates are often better than other banks is because they are online-only.


Everbank has also received high ratings for service and rates in surveys by Forbes magazine, Money, and others, for what that's worth.

I once had an interest-paying checking account with them. Had no problems and the rates were competitive.

[zhiwiller]

For what it is worth, I've used Everbank for a few years for checking purposes. I once had to call them for a service issue and their CSR was quick and helpful.

[HueyLD]

I talked to a couple of Everbank customers about opening foreign currency denominated bank accounts and purchasing precious metals from Everbank. They have both done business with Everbank and are very satisfied with their products and services. Neither had any reason to promote the bank except for being satisfied customers.

[jackiecc]

EverHome purchased my mortgage a year ago and so far they've been by far the worst of the seven banks that I've dealt with over the years. Their payment processing system is quite slow and unreliable. Most payments made through their website take one to two full weeks to process.

I've had two payments fail entirely on the EverHome mortgage side. (My bank has documented that EverHome never tried to process either of them.) EverHome did not contact me about the first payment until they had reported a "late payment" to the credit agencies and waited 17 days after I submitted the second to contact me (they called at 10:12 pm on the 31st). After giving them the confirmation number, amount and date of the payment I submitted they led me to believe the matter had been cleared up. EverHome then reported another "late payment" less than 24 hours later without contacting me.

When I logged in to make my next months payment I discovered the mess. I called and immediately paid that month (7 days before it would be considered late), the previous month that EverHome failed to process, and all of the ensuing fees they charged to the account. Now, 8 days after the phone call in which I paid all charges I have received a letter stating that they are foreclosing on my mortgage. It was post marked 4 days after the phone payment.

I'm fairly certain that they cannot legally foreclose but in no way certain that stopping the foreclosure will be an easy process. There are several other customers who have encountered similar problems with EverHome and are still fighting them in court. I may be in for a battle. To see my experience in more detail or to find links to theirs, visit "everhomemortgagesucks" on blogspot.

In short, I'd recommend working with a mortgage lender with some customer service. If you check consumer reviews on EverHome Mortgage you'll find that they are dismal. Best of luck to your sibling.

[giacolet]

I called their Jacksonville, FL Customer Service office on 8/14 to get a mortgage loan payoff (estoppel letter).

I had the appropriate info at hand: Loan Number, Mortgagor's SS#, property address and Mortgagor's name.

The rep was friendly, efficient and professional. The Payoff Statement was coming through my fax prior to the conclusion of the phone call request even though she said it would take between 2-3 hours.

Many lenders take 2-3 days, World Savings takes 10!

Also important to note is that I delt with a person and not an automated message. The Customer Service Rep took and input my information into her computer. I did not have to send a fax request which would have delayed the processing procedure.

[jackiecc]

I called them today (8/18) and asked for documentation that they were not foreclosing on my home and they said that they charge $20 for each fax and would only send the documentation after I faxed my request in writing. My call had been transferred three times at that point even though I called the number they gave me in their letter. You must have a gift for getting your way.

[Justin618]

Thanks for the replies...

My brother ended up writing a modest offer on a short-sale (homeowner upside down), the homeowner ratified the contract and submitted to his lender for approval - six weeks after submitting the contract the bank foreclosed on the house without ever replying to the contract. I am not sure if the left hand knew what the right hand was doing, or their failure to respond was in fact a denial.

In any event, my brother suspended his house search in the interim and was disillusioned with the whole process following the foreclosure, he ended up extending his lease for six months and will re-evaluate then.

Sorry for your bad experiences with Everbank - I tend to discount online complaint boards however, the only people motivated to post are those that have something to complain about (it's not a representative sample).

Justin

[giacolet]

Thanks for your reply and explanation Justin618. I realize the deal is broken but my explanation, hopefully, may prove informative and instructive to others.

Justin618 wrote:

...the homeowner ratified the contract and submitted it to his lender for approval. Six weeks after submitting the contract the bank foreclosed on the house without ever replying to the contract.

In the standard FNMA/FDMC mortgage the lender may consider the loan in default after 30 days of not receiving a scheduled payment. However, this rarely happens and the lender tries collecting the past due amounts to bring the mortgage current. This procedure goes on four to six months at which time the defaulted loan is transferred to a foreclosure attorney in the state in which the property is located. The homeowner receives written notice that a foreclosure is imminent.

Lenders are now swamped, buried in failed loans. They are not returning calls; in fact, once a law firm has the file, the homeowner has to contact the foreclosure firm. The lenders have "no comment" once a lawsuit is initiated.

First, a lis pendens is filed notifying the homeowner that a lawsuit is pending. The lawfirm sends the homeowner written notification and a statement of what is owed and the costs to reinstate the mortgage. The law firm then seeks a foreclosure judgment. Another two months may pass. If the lawsuit is not contested and a foreclosure judgment granted by the court, the homeowner is notified of the foreclosure sale and has the opportunity to bid to protect his home.

In the situation described, the homeowner obviously did not fully disclose the sequence of communications he would have had from the lender and from the foreclosure law firm. Secondly, repeated endeavors to contact the lender to have a contract approved fell on deaf ears because the lender had turned the case over to the lawfirm.

The homeowner and your brother should have found the status of the title from a title company or from a real estate attorney who could search the records to determine if and when the lis pendens was filed and if there was indeed a foreclosure suit. Or they could go to the county courthouse and check the records themselves. The lender's staff would have no clue on the status of the lawsuits.

Attorney's regard offers for a short sale as a delaying measure. The homeowner's resort if he fails to have the assets to pay the mortgage off or bring it current is to either get the backing of a hard money (15%) lender or walk.

Lenders are selling bundles of foreclosed loans to hedge funds and other investors at thirty cents on the dollar. They clean house not one mortgage at a time but in groups of 250 to 500 homes.

The explanation of a mortgage is ... if you pay you stay, if you don't you won't.

[grabiner]

I called them today (8/18) and asked for documentation that they were not foreclosing on my home and they said that they charge $20 for each fax and would only send the documentation after I faxed my request in writing. My call had been transferred three times at that point even though I called the number they gave me in their letter. You must have a gift for getting your way.

You need to contact a lawyer, and quickly. Getting the lawyer to send the relevant fax shouldn't cost much, and the bank is much less likely to mess with you when they know you are represented by a lawyer.