Posted by ck_KY on 4/15/09 12:45pm
Msg #285131

Somewhat O/T..Beneficial

Benefical is no longer accepting or processing Mortgage applications. We refinanced with Beneficial last September, and was told to do it again May of 2009 to get a better interest rate. They are now no longer accepting new loans, and we have a pre-payment penalty if we refinance with another mortgage company.

Has anyone heard of another bank possibly taking over Beneficial's loans? Any help would be appreciated.

Reply by Gary_CA on 4/15/09 12:47pm
Msg #285133

WHAT???

You accepted a pre-pay penalty last September???

You might have the last pre-pay on the planet. I'd try to contact someone and get it waived.

Reply by ReneeK_MI on 4/15/09 1:25pm
Msg #285145

Might be a moot point now - ask for a P/O letter and see

if there is a pre-pay on it, or just call and ASK.

Reply by Gary Boehm on 4/15/09 2:23pm
Msg #285157

Somewhat O/T..Beneficial

Ummm... if you sign with a company that requires that you only do business with them, or a certain service from them - and then they go out of that business/service and no longer offer it, shouldn't the question be: how can they possibly still require you to do that business/service with them with ANY kind of fee/penalty if you do not??

I'd get a definite legal opinion on that but it seems like a no-brainer, but then again what makes much sense in the financial world these days? Hmmm, CEO wrecks a company then expects a huge bonus? Same Category?

Reply by CaliNotary on 4/15/09 7:59pm
Msg #285226

"Ummm... if you sign with a company that requires that you only do business with them, or a certain service from them - and then they go out of that business/service and no longer offer it, shouldn't the question be: how can they possibly still require you to do that business/service with them with ANY kind of fee/penalty if you do not??"

The bank isn't requiring that she only does business with them. She has the right to refinance any time she wants with any bank she wants. They were just willing to waive the prepayment penalty if she chose to continue to do business with them, nothing wrong with that.

This is just another example of why so many people got into trouble in the first place. There are no guarantees when it comes to what will be going on in the mortgage industry in 6 months, and sometimes what you thought you'd be able to do, you can't do after all.

Reply by Doris_CO on 4/15/09 11:38pm
Msg #285259

I read about a month or two ago that HSBC will be closing all the HFC and Beneficial offices in the US. That's probably why your local office isn't taking applications for mortgages any longer.