WPCA Prevents Refinancing Through Fannie Mae

I received the following email from a sewer district resident.

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The WPCA hits again! My husband and I are trying to refinance our house. In doing so, Fannie Mae has told us that we either need to have the WPCA sign a subordination agreement agreeing to come in second in line to Fannie Mae for the Sewer Benefit Assessment, increase the amount we want to refinance (which would cause the interest rate to be 1% to 1 ½% higher, our monthly payments to be more and require us to have an appraisal done for $300 to $400) or that we need to pay it off in order to finalize this refinance.

I went to the Tax Collectors office to inquire about getting a Subordination Agreement signed. I was told WPCA or any town department will not sign Subordination Agreements for any reason. I then went down the hall to speak with Peter Hughes. He told me that that was correct, the WPCA or the town will not sign Subordination Agreements. Of course, I couldn’t just walk away and say ok. I told him that first I was forced to hook into a sewer system that was not necessary, that I knew I couldn’t afford and caused a financial burden and now he’s telling me the town will not subordinate to allow us to refinance our house to decrease the financial burden they caused. He said the WPCA Board voted not to subordinate months ago and I should talk to the Board if I had anymore questions or concerns.

I then put in a call to Jack Murray. Again I was told the WPCA will not subordinate for any reason. I explained that Fannie Mae would not allow a refinance without it unless the Sewer Benefit Assessment was paid off or the amount of the mortgage was increased causing the interest rate to be higher and having an appraisal done. He said the WPCA will not subordinate. They are in first place and are not willing to take the risk of being second in line to get paid if something should happen.

He suggested we try to get a mortgage through someone other than Fannie Mae. He obviously does not know me, I do my homework. We can get the best rate, terms, etc. through Fannie Mae. I told him that by not signing Subordination Agreements they could possibly be setting people up to get sued if they can’t refinance to pay bills, cause people to have to claim bankruptcy, prevent a child from going to college or a number of other serious situations that could be avoided and if going through Fannie Mae was the only way they could qualify for a mortgage they couldn’t even refinance to lower their interest rate or reduce their monthly payments. He again repeated that the WPCA doesn’t sign Subordination Agreements.

So in summary, the WPCA has forced us to hook into a sewer system we didn’t need or want, caused us to incur expenses we couldn’t afford, caused us a financial burden AND now they are preventing us from refinancing our house (at the best rate/terms we can get) to lesson the financial burden they caused and are preventing us from being able to do any business with Fannie Mae for the next 20 years, all because they are not willing to take a risk that would amount to less than $12,000.

It amazes me that I own a house but a few towns people, because they sit on a voluntary Board, have the power to decide that I can’t use Fannie Mae even though Fannie May would be the most beneficial to me and they have the power to prevent me from refinancing for 20 years if I could only go through Fannie Mae.

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