• Report: #240699

Complaint Review: 21st Mortgage Corporation

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  • Submitted: Sun, March 25, 2007
  • Updated: Fri, March 30, 2007

  • Reported By:Winter Park Florida
21st Mortgage Corporation
21stmortgage.com/ Internet U.S.A.

21st Mortgage Corporation ripoff sly technical unchallenged unlawful unconstitutional Internet

*Author of original report: Claim Resolved

*Author of original report: response

*UPDATE Employee: Again, more to consider

*Author of original report: A from Knoxville

*UPDATE Employee: Things to consider

*Author of original report: Update 2

*Author of original report: Simple Update

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I'm writing this report on behalf of my mother. She is a 50 year-old restaurant owner in Bowling Green, Ohio. She's lived in her trailer since 1998. It isn't much, but it's very well-kept with a beautiful garden and exhaustive decorating (and constant redecorating thanks to my mother's perfectionist personality).

Her original mortgage lender was a company called Comerica. Anybody familiar with the Detroit Tigers would recognize the name, as it's the stadium's sponsor. Hence, Comerica Park.

Since 1998, my mother has never been late on a single mortgage payment. Her total loan was for about $31,000. She has about $8,000 left after almost 10 years. Since she acquired the mortgage, Comerica has been taking payments directly out of her bank account.

On Friday, January 26th my mother received a notice saying that her mortage was going to be bought out by a company called 21st Mortgage Corporation. The letter said that her mortgage would technically be switched by February 15th, and that "if your payments are drafted by Comerica please note that future payments will be automatically drafted and applied to your account".

The letter also specified the need to update her insurance coverage to avoid insurance penalties or fees. In order to do that she needed to have her insurance policy reflect 21st Mortgage as the lean holder. In order to do that, she needed to have her loan number for 21st Mortgage, which was not included in the letter. Instead, her Comerica loan number was included. When contacting 21st, she could not get her loan number as quote, "they didn't have one created for her yet".

Now, while all of this pesky insurance business seems like it's adding up to something, it hasn't yet actually. Instead, they pulled another maneuver, possibly leaving the invalid insurance claim as a contingency.

Their move was altogether more gray than that. On February 2nd, my mother's mortgage payment was due and automatically withdrawn from her account under the Comerica loan since the switch wasn't official until the 15th. Her payments were due every two weeks, so the next was due on the 16th. On the 16th, her payment was not drafted from her account by her new lean holder, 21st Mortgage, as they said that it would be. Instead, it was considered a late payment. Because of this, 21st has the ability to demand the entire loan as a payment or face eviction. And that's what they did. They told my mother to pay the remaining balance on the lean or get evicted. They even sent people to take pictures of her house because it was "being foreclosed".

In the letter that 21st sent to my mother, it stated clearly "that the transfer does not effect the Comerica contract terms". However, by transferring the loan to 21st alone, the loan became sub-prime and subjective to this kind of unchecked abuse.

Unfortunately, 21st Mortgage is ultimately owned by Warren Buffett, one of the richest men in the world. When talking to the customer service at 21st, my mother was even told "if you fight me, you fight Warren Buffett". That's not exactly friendly customer service.

Maybe it's the war, maybe it's everything else that has to do with the war. Maybe it's the dueling congress and executive branch, I'm not sure what exactly it is but something tells me our attention is not focused at home, and because of this the most important part of this country, the foundation and the heart of the United States is being victimized by the corporations and nobody seems to care, or at least nobody is listening.

Mike
Winter Park, Florida
U.S.A.

This report was posted on Ripoff Report on 03/25/2007 05:15 PM and is a permanent record located here: http://www.ripoffreport.com/r/21st-Mortgage-Corporation/internet/21st-Mortgage-Corporation-ripoff-sly-technical-unchallenged-unlawful-unconstitutional-Inte-240699. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 7Consumer 0Employee/Owner
Updates & Rebuttals

#1 Author of original report

Claim Resolved

AUTHOR: Mike - (U.S.A.)

After a few weeks of rocky phone calls and strange claims 21st Mortgage finally called off the foreclosure.

They said that since the transfer didn't go as smooth as they had hoped they will waive the late payment and any fees associated with it. The foreclosure has been called off, and starting immediately my Mother is current and on good status with 21st -- as long as she stays on time with her bills.

I'm still concerned about the lack of regulations in the sub-prime and credit markets. People are being charged ridiculous fees and fines and are put in situations where they have to face a mountain of interest that's usually impossible to climb.

Thanks again to 21st for understanding the situation and resolving all the issues with my Mother. I feel much better knowing that there are some people looking out for their customers' best interest.
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#2 Author of original report

response

AUTHOR: Mike - (U.S.A.)

There's nothing more to say on this topic, not everybody treats their customers the same. I'm glad that you are a responsible and friendly employee of 21st. I'm sure there are many more, but the fact remains that the possibility and likelihood of other employees overstepping their bounds are much higher than they should be without any checks and balances to counter their illegitimate claims and demands.
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#3 UPDATE Employee

Again, more to consider

AUTHOR: A. - (U.S.A.)

Did your mom contact 21st when she noticed the draft on the 16th did not take place? What was the explanation she received when she pointed out that error? What documents did she receive that stated the entire loan balance was due or there would be foreclosure? Is it at all possible that your mother or a 21st representative misunderstood any of the situation?

Please understand that I am not discounting your situation at all. What I know is that I personally treat every customer fairly, and it bothers me that you would assume otherwise by saying 21st Mortgage is a terrible company.
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#4 Author of original report

A from Knoxville

AUTHOR: Mike - (U.S.A.)

I understand completely how much work it is to transfer all the data on thousands of customers into differentiating information systems and the painstaking process of hard copies, however if a company isn't up to the challenge it's my opinion that they should be held responsible for sloppy and/or irresponsible business practices, not the customer.

If the conversion is really such a rocky slope then perhaps, at the very least, the ill-prepared/overburdened company should be a little bit more compassionate for their customers who suffer the consequences directly from their lack of organization.

Also, if they don't have any information pertaining to the customer, how can they move forward with a foreclosure and/or eviction? And why do they have to be so rude and stubborn about it? All of this on top of the fact that the company won't even own up to it's own mistake about assuming responsibility for automatically drafting payments when they should know how long it can take for the transfers regarding drafted payments to cross over.

If 21st showed any signs other than a lack of understanding, care, responsibility and patience then maybe things would go smoother.

Also, treating customers who have been loyal to their mortgage for 10 years like trash because they can't take the time to work with customers on a one-on-one basis with valid facts and supporting paperwork is unfair, misguided and at the least the company should be fined. More regulation, that's where I'm going with all of this.
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#5 UPDATE Employee

Things to consider

AUTHOR: A. - (U.S.A.)

As you mentioned before, the deal w/ Coamerica was not official until mid-February. Many Coamerica loans were not even registered into the system until Feb. 16 because thousands of loans were acquired and all have to be entered into the 21st system. This is probably the reason for the Feb. 16 non-draft... generally, auto-draft information is usually on a 72 hour turn around for editing, adding, or dropping.
Your mother probably couldn't get a loan # if she called before the actual transfer was made b/c 21st couldn't enter everything in and make an account official until the Feb. 15th date.
As for being able to provide documentation of payments, please remember that 21st and Coamerica probably weren't using the same information systems, and I know that during past acquisitions, none or only parts of the history w/ past companies is in the 21st system b/c of those program differences. Also, every single loan document has to be scanned and entered into the account database by hand, and this can take some time.

I would be interested in knowing more about the documentation that your mother received about her foreclosure b/c I find it strange that she would actually have been served a writ since the loan has been at 21st less than 2 months.
I can understand frustrations with this situation and sympathize with your mother's worries. Imagine the 21st reps who are having to deal with hundreds of accounts with these questions and concerns daily!
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#6 Author of original report

Update 2

AUTHOR: Mike - (U.S.A.)

I would also like to add the fact that in no way am I accusing 21st Mortgage of anything illegal.

I would also like to point out the fact that what 21st Mortgage is doing is only possible because of the lack of restrictions and regulations in the sub-prime market.

I would also like to add the fact that the ultimate president of 21st Mortgage, Warren Buffet, is an extremely revered individual who is personally responsible for over $30 billion in charities worldwide, and in no way am I accusing him of any wrong doing. I am simply stating the loopholes that are present, and while legal, shouldn't be and should be corrected. That is all.
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#7 Author of original report

Simple Update

AUTHOR: Mike - (U.S.A.)

I would also like to update the report with the fact that 21st Mortgage is extremely irresponsible and private with their records. Any transcripts or letters that provide proof for any late fees or payments are either non-existent or cannot be shown or described to the customers they are regarding. When accused of late and or no payments the customer has no information from the company's side to prove that the payments are either late or missing.

Also, they acknowledge the fact that loan numbers, which are vital to establishing insurance and protection from these exact situations, are missing or not established yet for weeks and/or months after the buyout of said mortgage. Meaning, that even if a customer wanted to be absolutely on top of the situation with prior knowledge of the way these companies work (which is almost for sure a data-mined prerequisite for target customer) the company always has a contingency with the failure to provide insurance, even one single day after the official acquisition of the lean.

The sick part of this whole charade is that there are probably other loop-holes and contingencies that I don't even know about...
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