HOMEFRONT : Getting Unscrewed
Joe and Jean Roth Marinelli never meant to become Urban Guerrilla Homeowners. But early this year, through pushiness and stealth, they saved $4,100 on their $140,000 refinancing loan.
It started with the broker’s “guaranteed” rate of 7.38%. But when it came time for them to sign the loan documents for their Eagle Rock home, the rate had jumped to 7.8%. After hearing that, Joe, 35, a TV actor, phoned the broker,disguised his voice and was again “guaranteed” 7.38%. Joe promptly revealed his identity, called in a relative who’s a lawyer, and after much acrimonious debate, finally got a rate of 7.5%. Savings? About $3,300 over the seven years of the loan.
When the escrow officer wanted $100 for a “redocumentation fee” to retype the grant deed to add Joe’s name (the couple recently married), Jean, a 31-year-old musician, bought a $1.50 grant deed form and typed it herself.
When the escrow company quoted $45 for a credit report, Jean ordered it herself for $20. When the appraiser asked $400, Joe realized that he was only going to use a list of current prices of nearby homes. Joe won a noisy argument over the price and saved $300. Then the title firm, which had quoted $500 for insurance, tried to slip by a price of $572. Jean, who was at the escrow office when she spotted the increase, phoned the title company. Saying she was “at the escrow company,” she asked about the discrepancy. The title officer, assuming that Jean was an industry insider, asked, “Is there any way I can get out of the $500 quote?” Replied Jean: “No.”
Other suspect charges: a $50 fee charged by the mortgage broker for supposed “processing”; $100 by the escrow company for messengers and FedEx fees (when pressed, the company could produce only $16 in receipts), and recording fees of $5 a page--in fact, L.A. County charges $5 to record the first page of a deed but only $3 for each extra page.
The Marinellis may well have been dealing with a bad bunch, but they still advise loan-seekers to keep a sharp eye out. Says Joe: “Bring your own calculator, take notes and demand receipts.”
