25 May 2006
Following contacts with private attorneys and the Colorado Attorney General's office we find we must seek your assistance, and the immediate assistance from the legislature to stop a compound fraud that may quickly lead to an eviction. We are both disabled seniors who own our own home in Longmont (at the above address).
As in so many similar tales currently, we entered into a home mortgage with Decision One, with a 5-year ARM. As term approached we sought to refinance our home. In the past years we have both become educated in real estate investment through our company, buying, repairing and selling at least one house in Lochbuie for a small profit. We also have been engaged in credit repair to the point FICA scores were 795 for Richard and 780 for Rebecca. With these scores we began to investigate available loan programs. Most of these are available over the internet, where one signs up electronically. These open a pool for brokers to make inquiries as to credit score.
Over a period of a month we spoke with who we believed was Decision One's representative, Nick Garcia, (EAC Corporation 1-800-323-0603) who was handling the refinance. We had made the original contract with Decision One, which in turn sold the note to Americas Servicing Company (ASC). Yet it was Decision One who agreed to refinance. Despite regular assurances the loan was proceeding, and Nick gave specific instruction to not pay two mortgage payments "as they would be included in the refinance mortgage" the loan was never extended nor signed, as due to the numerous inquiries to the three credit corporations, our scores dipped into the 500 range.
EAC Corporation then stated our "credit scores were too low". As anyone in this financial process knows, such numerous requests suppress the credit scores for fourteen days, at which point the previous score is reinstated, within a point or two. Furthermore, we find that Nick was not associated directly with Decision One as represented, but to "EAC Company" in New Jersey.
While we continue in the process of refinance, we have begun receiving demands for payment from ASC and now notice of foreclosure proceedings. They refuse to contact Nick or Decision One and rectify this matter, although the companies are not associated. This has created stress and anxiety to the point where we are not able to function in activities of daily living, have confused our thinking, and placed us in dire fear of losing our home and possessions. Tracking the actions in series, we find we have acted in good faith all along, including making a payment of $1,242.32, also marked "paid in full", in response to EAC Corporations "good faith estimate" sent to ASC and Decision One which ASC promptly cashed. Apparently they will accept money but not honor a contract.
In addition the have a complex voicemail system that delays speaking to any individual, and those individuals who finally answer claim no knowledge, understanding, nor authority to change any arrangements. At this point we tried to contact their legal department to see if they might have a clue; yet we were told we did not need to speak with Legal, and when we insisted we were "transferred" only to be repeatedly disconnected and despite our requests no one from Legal has bothered to return our call..
We finally called and asked for a modification on our loan, which they said would take up to 45 Days. Once again instructed not to make payments, but put the money aside to pay latter.
There have also been errors on the credit records that had to be cleaned up. A local judgment from Sherwin-Williams against a local painter named "Richard D. Riley" a distinct and unrelated person of whom we have no knowledge other than name, had been sued by Sherwin-Williams for an unpaid bill of $4,500.00. This ended up on Richard Riley (me) account. Physically appearing at Sherwin-Williams I (this Richard Riley) was assured that they (Sherwin-Williams) knew the "other" Richard Riley personally by sight, and that the records were to be expunged from our file and placed in his.
In addition, our tax payments were included in our mortgage payments, yet a debit of some $2,700 (approximately) of unpaid taxes was also assigned to our debts. This is impossible, and this must be a bookkeeping error somewhere, most likely with Decision One.
We must mention Decision One also "pulled a fast one" at the date of the original closure of the loan. The contract we requested, and seemed to come to a meeting of the minds about, was that there was to be a 5-year ARM with no pre-payment penalties to apply. At the signing they rushed us through, changed papers I the process, and the final contract reflected that there were indeed pre-payment penalties included. Other terms were also not quite as we agreed. There has been a pattern of abuse and fraud within Decision One from the onset of our dealings with them.
We have severe suspicions that this is a pattern of doing business as follows: They extend a loan, alter papers to their favor, extend the Adjustable Rate Mortgage, assure the client there will be refinancing available, then at the time of refinance make sure there are multiple inquiries as to FICO scores, and when the FICO scores are artificially depressed they engage in specific delaying tactics, which confuse the issue and make legitimate lending agencies cautious about extending a different mortgage, then begin demanding full payment according to the terms of the loan they have not yet signed and begin foreclosure proceedings. What might be their goal? For American Servicing Company ( which is part of Decision One) to gain title to their clients homes, own them, and mortgage them out again in the same fraudulent process. This is intolerable.
We ask your help, especially in any area we may not have thought about. Legislation as a remedy is obviously needed, but that takes place in the Senate ad House and tends to be quite slow in ratio to the extreme speed in which foreclosures may take place due to the tactical plans of fraudulent institutions such as Decision One. Immediate remedy, however, may be applied with assistance from your office. We request a formal Senate and House investigation into these matters which may well be current and ongoing.
If so, we would like to be placed in contact with any investigative committee members so we may be informed as to the changing status of legislation. We would like any political or investigatory pressure placed upon Decision One in general and EAC Corporation Nick in particular to define specifically who is liable for actual and punitive damages due to their actions (or lack thereof). We ask that we be placed in direct contact with any public-funded agency working to redress these types of problems.
We are in the process of learning real estate investing and this has never happened to us before.
Our company's mission statement is to help people find homes. Our business has been stopped cold, right when we were getting financial partnership backing and in an ideal period to fix and flip homes in the Longmont area, given a depressed real estate market. So far our actual losses exceed the small profit on the single house we were able to complete. Projected losses are much greater, and do not even discuss the loss to the people who do not have a decent home to live in that we may well have been able to provide at reasonable cost.
Rather than running a small but important and thriving business, we have met a backlash from the industry, due solely to their "established policies" that do not align with law already on the books, and now face litigation and must endue the fear and stress associated with our very home being taken away.
There is no "right" or righteous activity occurring at the three companies mentioned above.. Their advertising is expensive and pervasive, and totally deceptive. They do not perform the functions they say they will. Rather, they have a hidden agenda of preying on the poor, the disabled, the people striving to maintain what they have in spite of globally-increasing costs while income remains fixed. They, and others, are taking undue advantage of the situation and are wreaking havoc in people's lives as they do so. We are aware both the Senate and House, through Finance committees, have been addressing this issue. However, some immediate intervention in this particular situation is required within the week, so we may maintain our home and be given the right and due ability to fight fraudulent entities.
We also house a homeless man rent-free who is in a long battle to obtain his due Social Security Disability benefits. This means one burden we have removed from the tax structure again becomes dependent on the social safety net for full housing assistance. His appeal is being unduly delayed at Denver's Office of Hearing and Appeals, which refuses to so much as place his case on the docket. He is pursuing this independently, but the addition of the stress of upcoming displacement has placed him, as well as us, in a state of extreme despair and exacerbated his conditions that led to his disability. This also reduces any help he may provide our business, as he is able to help with financial and business matters when stable. Thus this situation with these companies have also effectively damaged our sole consultant.
Any help or advice will be greatly appreciated. Any further information you might need to pursue this matter will be provided by us. If you need access to FICA scores ad records, or any other permissions to access this case, they will be provided immediately upon request. Our contact information is below. We will be following up this letter on Tuesday, May 29th with a phone call in the afternoon, should you not contact us in the morning.
We thank you for any help, and appreciate your public service.