I signed a collateral loan for my daughter & her husband. $93,000. 12/2004.
Loan officer told us all untruths about the loan. On the day it was to close escrow, loan officer called to say she made an errors in drawing up the agreement, it would have to be redrawn with changes in the loan amount & payment & payoff terms.
World savings also, now wanted 25% cash downpayment to close escrow.
We said, "NO". Then World savings would take 10% cash downpayment. We said, "NO". Then World savings agreed to just the collateral loan $93,000.
The loan amount was changed to a higher amount, with-out any truth & lending statement! World savings now did not deduct the collateral loan from the mortgage loan. SO, the monthly payment was a higher amount.
We were told by the loan officer (Angela) that the collateral loan could be released in 6 months if the property increased in value by 20%. IT HAD.
But, now we had to wait 3 years. And only then if THEIR appraisers said the property had increased in value 20%. IT HAD. The appraisal was a sham. Came in $100,000. low. We had our own apprasal done.
The prepayment under 3 years was $9,000. They had to sell the house in 2 1/2 years because of the increase in payment & because the collateral loan was not released. After many, many phone calls to many, many people they only charged us 1/2 of the prepayment. They should not have charged any.
There is a differance between a soft prepay. & a hard prepay. We only signed the escrow papers after many delays because their house had been rented out. Tenants were moving in, my daughter was having a nervous break-down, all of the things were in boxes.
The loan agent & her boss were so sorry about all the errors they had made. They would do more training next time. (HA HA) World savings knew what they were doing, they just took advantage of us because the move had to go on. My daughter did not have a place to live.
I hope that some day there is a class action suit against World savings (now Wachovia) Even after close of escrow & after a 20 day wait. I had to fight to get my collateral loan release.
I have all the paper work. If I had extra money for an attorney I would have sued them. I still might take them to Small claims court. Vachovia I hope you get to read this.
Jacqueline
LINCOLN, California
U.S.A.