Century 21 Mortgage Co., Mt Laurel, NJ - mortgage loan to home buyer denied due to HUD limitation of four dwellings per water well was exceeded

# 8 for September 22, 2003

Complaints.com received the following on September 21, 2003:

From:

RE: Century 21 Mortgage Co., Mt Laurel, NJ - mortgage loan to home buyer denied due to HUD limitation of four dwellings per water well was exceeded On their website, Century 21 Mortgage (Cendant Mortgage Co) pledges to treat those who do business with them as "one of the family." Furthermore, they state that the mortgage loan experience with them will even be pleasurable at times. They go on to say that, if any time, you are not being treated right, to ask for the "Office of the President." The stated (and implied) impression is that they will treat you right: with consideration and, certainly, fairness.

Our experience with Century 21 Mortgage was contrary in every way to their website promise.

The couple purchasing our home had applied to Century 21 Mortgage for an FHA mortgage loan in May. Century 21 Mortgage had questions about the number of dwellings on a single water-well and whether the situation conformed to HUD/FHA guidelines and requirements. Consequently the local Century 21 realtor faxed to them the articles of agreement relating to the shared-well situation in the subdivision.

There was enough information to allow Century 21 Mortgage in Mt Laurel, NJ to decide if the shared-well situation met HUD requirements. In the meantime over the next month the realtor, title company, and us (the sellers) heard nothing from Century 21 Mortgage that gave any indication whatsoever that the loan wouldn't be approved. So we moved out of our residence - planning on the set late-June closing - and made financial commitments based upon the set closing date.

Several days before tha scheduled closing in Late June the local realtor began receiving a flurry of water-well related questions from Century 21 Mortgage. This continued right up to, and including, the scheduled closing day. Then silence from Century 21 Mortgage until the week following the scheduled closing when we were told the loan would not be approved because the HUD limitation of four dwellings per water well was exceeded.

This should have been apparent to Century 21 in late May when the very-specific articles of agreement for the particular well and dwelling were faxed to them. However they let more than a full month elapse, without a word, while we made financial and other commitments, before denying the loan not only at the last minute but after the scheduled closing date. As this caused us unnecessary expense and inconvenience (certainly not how you would "treat one of the family") I wrote Mr Terry Edwards, the Century 21 president, requesting reimbursement for our expenses incurred due to Century 21's poor handling of the whole situation.

We received a message on our voice mail from a Century 21 staffer saying Century 21 "had absolutely no legal obligation" to reimburse us, and they couldn't discuss the matter because details relating to the buyer were private. However, the reason we were finally given for the loan not being approved (too many wells per dwelling)had nothing to do with the buyer. The particulars involved us.

So Century 21 went from "treating you like family" on their website to "we have no legal obligation" when it came to a real situation where they dropped the ball during the loan application process.

It's telling that the local Century 21 realtor does not go out of their way to recommend one of their affiliate companies (Century 21 Mortgage) when a client inquires as to places to shop for a motgage loan. I would caution anyone thinking about applying for a loan thru Century 21 Mortgage Co not to believe the promises made on their website. The business about "being treated like one of the family" is misrepresentation and false and misleading advertising.