Be Careful When Signing Your Mortgage - Here's What Happened to Me

I was in the process of buying my first home; it was a new build with one of the largest home building companies in the area. I had first selected a subdivision that was in the major metro school district with the assumption that they would let me send my kids to a county based special needs program, which they had attended for the last two years.

I found out from the county program that this particular school district wouldn't allow students to transfer to the county program. I talked with the real estate agent about switching subdivisions, and she was very helpful. She got us a spot in a nicer suburb for the same price as the previous lot we would have purchased.

Everything moved along nicely up until the day of closing, which was in late November. I was supposed to receive a check for about $800 because of a government grant for new homebuilders. I saw the check in the folder of papers and forms that the closing agent had. He explained to me that there was some small hitch and that I'd get my check sometime that week. He refused to elaborate on what was wrong when I questioned him, so I let it go.

I was really disappointed about not receiving check at the closing, as I had been promised. I had hoped to use some of the money on Christmas presents, but I should still have plenty of time to buy presents even if I got the check later that week. So I still left the closing feeling happy. I was finally going to be out of an apartment!

I headed to work after the closing. Within an hour I received a call from the closing agent. There had been a mistake. The new area where the home was built didn't receive grants for new homes, so I wasn't going to get the $800. In fact, I needed to write them a check for $5 to cover part of the cost the grant would have paid for.

I was mad, but I rationalized that the money wasn't really mine. I said okay, and someone drove out to my work place and had me sign the new closing papers and write them a check.

I felt really mixed emotions over the whole ordeal. I felt like I shouldn't sign the new closing papers because the mistake was their fault. At the same time I felt that I shouldn't press the issue since there wasn't a grant available for my new home's area.

I also felt somewhat suspicious that they were in such a hurry to get the papers signed. I probably should have told them I'd get back to them, but I wanted the closing to be done with so I could still move in when planned.

I've beat myself up over this incident so many times. Legally they owed me the money because they had let me complete the closing transactions; all the documents the lender and I had signed said that I was owed the money.

Since I did sign the new closing forms I was no longer getting the money I had planned to spend on Christmas presents and various moving costs. I had a little (and I mean little) bit of money to spend on gifts, so I made do.

My daughters both have autism, so they don't fully understand the concept of Christmas, which made it a little less stressful. Still, I felt like I had let them down due to a mistake that wasn't fully my fault.

I suppose that, if nothing else, I've learned to never immediately sign something because I am told to and to question things that don't seem right.
We have been living happily in our new home for about four years now, but I still regret the mix up that marred our first holiday season in our new home.