If you call Quicken Loans you will hear a recording about how everything they do is “engineered to amaze” you and how they’ve closed over 2 million loans. I’m calling BS!!
I just had my first, and last, experience with Quicken Loans. The only thing amazing about them is how they waste people’s time and money.
The buyer and seller agreed to the price and terms, which by definition, is Fair Market Value. Therefore, not surprisingly, the appraisal came in at the agreed upon price–which was also supported by comparable sold homes in the neighborhood.
But that wasn’t good enough for Quicken. They wanted a second appraisal, which of course was called for at the eleventh hour putting the buyers out of contract. And, of course, the second appraiser (who showed up disheveled, twitchy, and armed with the shortest low tech measuring tape I have ever seen in this business) came in with an insanely low appraised value and killed the deal.
This cost the buyers money and the sellers time. Timing on this transaction, more so that usual, was crucial. The buyers had to hope that the sellers were willing to wait for them to get financing together (all contingencies had been removed with the exception of appraisal and financing). Again. The sellers have to hope that if they do wait for the buyers, that they won’t have to wait too long.
Apparently these buyers aren’t alone. There are almost three thousand complaints against Quicken Loans on Consumer Affairs alone. There are about 600 complaint on PissedConsumer.com. They don’t get high marks from Yelpers either–the positive reviews seem totally fake. Without the fake positive reviews, they would have a solid 1 star–which is as low a rating you can get on yelp. Meanwhile, on their own website, they claim “95% of our closed clients would recommend us to family and friends” with the operative word being “closed” which rarely happens since they procure fake low ball appraisals.
When I approached my favorite local lender, Patrick Mahon, I didn’t even need to tell him the whole story. As soon as the words “Quicken Loans” came out of my mouth he said that I didn’t need to say anything else, that the deal will never close with Quicken.
In reading the complaints on Consumer Affairs it appears that QL makes their money off of fees, fees for loans that never get funded. Loans that never get funded aren’t loans, of course. It seems QL is now in the business of charging fees. Period.
Apparently, QL prefers refinancing rather than helping buyers actually acquire property. Seems like something the Consumer Financial Regulatory Bureau should be looking into. Although this could be a result of the Department of Justice suit against QL for artificially inflating the value of properties in order to bilk the FHA and taxpayers out of millions of dollars.
Moral of the story. Work with local businesses that have a stake in the community, with people that care, that you’ll run into at the grocery store. Being face to face creates accountability.