This company is a bait and switch lender advertising one thing and then once you're in you are held hostage, ignored and financially penalized. DO NOT CHASE THE DANGLING CARROT.
I am a LICENSED TEXAS REAL ESTATE BROKER and have been since 2001. I have worked with investors and I make my own investments as well. I HIGHLY DISCOURAGE ANY INVESTOR FROM APPLYING FOR OR USING SHERMAN BRIDGE LENDING.
What you can expect from Sherman Bridge Lenders: promises will be made to you, they will not be fulfilled; you will be lied to, you will be ignored, you will be stuck in a trap between the hard money purchase loan and the supposed refinance permanent loan you are ultimately expecting to get. Meanwhile, you will pay a very high price eroding whatever profit you expected or worse...going into negative losses as ongoing delays caused by Sherman Bridge Lending force you to pay spiked interest rates for an extended period of time leaving you at their mercy as they control your refi by threatening high fees as a penalty for seeking refi elsewhere. So you can't get them to follow through and you can't get refinanced by someone else.
I bought a house in November 2015, completed rehab construction in December at which time my refinance application went underway...lets see...January, February, March, April, May and a few days it'll be June...THEY HAVE TAKEN 6 MONTHS TO PROCESS MY REFINANCE AND CHARGED ME $1500 EACH MONTH THAT THEY HAVE REFUSED TO COMPLETE THE UNDERWRITING.
I have contacted them multiple times of course and a popular reason Sherman Bridge provides me is that the person in charge of my file is no longer working there. The 1st time I heard this I wasn't concerned since talented people get recruited away with better opportunities. But one after another after another? I now suspect that Sherman Bridge has serious internal issues as well and the good people, the reliable, service oriented, ethical and "get things done" people flee this company. So WOW! How are they treating their own people? I WOULD ADVISE ANY LOAN OFFICERS CONSIDERING EMPLOYMENT WITH SHERMAN BRIDGE ---DON'T DO IT! You will have very dissatisfied clients - no one likes being neglected and held hostage then being charged for the privilege.
The current person in charge of my file took a week off to get married. Yay for her. But prior to her vacation she promised I'd be closed on my refinance in 2 weeks (the 1st of which she was gone). That was April 29th, it's now almost a month after the promise. I have still not been contacted by her, any other Sherman Bridge employee or had any courtesy response even to my email requesting status, explanation for additional delays, or most importantly....WHEN I CAN EVER EXPECT TO CLOSE MY REFINANCE!?!?!?
I am convinced that this is deliberate action by Sherman Bridge to earn the $1,500 monthly interest as long as they can procrastinate and put my refinance off; and now having read other posts in this forum and learning that it's the normal way they do business with so many other customers I can see that they sell this hard money to permanent financing loan combination as a dangling carrot really since it's oh so clear Sherman Bridge never intended to process the refinance in a timely manner to begin with. It appears at this time the still have no intention of processing my refinance.
This company should be avoided at all costs by prospective borrowers and by prospective loan officers.
Updated over 3 years ago
I have submitted my review to the BBB.
@Rebecca Chapa I hate to see people having these issues with HML as they give us all a bad name, but unfortunately, these types are out there in droves. The recommendation I would have for you is to never expect to do a refinance from the same person you're getting your original loan from. The reasons are for exactly what you've stated - conflict of interest at best. Before someone gets a loan from us if their exit strategy is to refinance, we encourage them to get quotes/commitments on the refi from several other sources before taking the original loan so they aren't stuck at the end of our loan without options.
Thanks for sharing your experience here in BP. This will serve as a warning for other people who wants to loan money from lending company.
thank you for information
Thank you for sharing. Very helpful, I contact them a few days ago so happy I did further research
@Rebecca Chapa - There are thousands of banks, credit unions, direct lenders out there you can and will gladly do refinance for you. Why are you waiting 6 long months and getting treated, for a lack of better word, like CRAP? Did you sign any piece of paper saying you will solely use them to get permanent financing, and won't go elsewhere. I can't imagine someone who has been in business for a decade and half doing a rookie mistake like this. Please say it ain't so. What am I missing?
wow.. thank you for the heads up!
Appreciate the feedback, the company was on my list to contact...
Glad I read all the reviews about this company. I was going to use them for my next purchase. Thanks for posting.
@Chinmay J. and @Jason Hirko agreed. It seems the trouble was trying to use Sherman for initial loan AND to do the refi into the fixed-rate mortgage. I may use them for initial loan, and will refi within 12 mos to my conventional lender. I've confirmed there's no pre-payment penalty, and they know I'm not doing the refinance with them.
Thanks I have been speaking with them and so far nothing but crickets when the topic of refinance a group of five small homes on 3 lots. Great income property in great rental area. These were even a New Western properties? We will see but I am concerned. Great and well stated review.
Not to mention, their draw process when you have the rehab loan with them is a pain in the butt. I've had multiple draws that were not requested (to the inspection company) after I submitted them, not paid out enough because they thought the work wasn't done all the way (even though it definitely was), and they expect you to wait for a check in the mail after their 6-day draw process is done. If you request wires, it's $70 per wire. I'm not happy with the services that they've provided and will be seeking a new lender with more flexibility for the modern investor (and technology) in the future.
I'm a flipper in the Atlanta area and purchased a property from New Western Acquisitions. My original HML (Atlas Financial, who will recommend that NO BODY USE THIS COMPANY) jack up the purchase and decided the day of closing that they wouldn't do the loan. The buyer (New Western) said they would only continue if I used Sherman Bridge. So with $8,000 down payment on the line I didn't have too much of a choice.
Starting out it seemed okay but then when it was time to close I find out the they would only finance 90% of the original rehab budget and they would charge 2 points on the backend. I will never use Sherman Bridge again.
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