Just like many of you out there, got into a home loan because they made it easy to buy but not easy to own! Mortgage companies luring you in with attractive payments, fast buys,and promises of converting into fix loans with lower rates. Sounds good until time moves on.
My Loan was first purchased thru Ameriquest in MN and was bought by Citi aprox 2-1/2 to 3 years ago. Ever since then I have been trying to convert my home loan to a fix or tried to lower my interest only rate from the 10% a year ago and the 9.5% I am paying now. Apparenty I do not quaify for a FHA or any other fix rate so I tried to lower the rate because I wanted to be responsible in carring the debt I took on.
I am self employeed, single and also pay child support. Business has been on the decline due to the economy(self explanitory) and the costs of living was on the rise. I was in a shortfall of money every month aprox $500-$800 for the past couple of years.
I contacted Citi to see what I could do and they told me the only thing I could do is go thru with a Loan Modification at that time. It was a verbal questionare by the rep and then a letter they send out and I fill, then return. At that time they said I would maybe be qualified a reduction to 7.5% if everything looks good. I answered the questions and was told there was nothing they could do at that time. I was mad because that was the begining of the housing fall.
I the year before all that Ameriquest was sued in a class action suit in MN and many other states and thats why you don't hear to much of them any more. Ameriquest lost and I got a compensation check because of that.
Almost a yar has gone by and still in the same boat as a year ago but still willing to keep my house and make payments( by the way- I was never late on one payment ever since I have owned it, I took the debt on somewhere else and worked a lot more.),and be financialy responsible, I tried again.
Surprisingly this time, I was asked why I never filled out the paperwork for modifing the loan the last time I tried. I said"WHAT"?? I told then I was told I did not qualify and was NEVER sent out the paperwork to fill out. Now I was really mad because I have been paying to a year, 2.5% to 3% more than I should be.
So I said" Why not modify it right now then?" She says we can't just do that, you have to now be asked questions again. Now thats the dumbest thing I have every heard. So I asked her if there were any records in their system that indicated that they sent out the mailing to me, and there wasn't!
So I guess what I am saying, I have been paying up the nose for a bad loan, told I didn't qualify for a modification, but there real truth is I did and they have gotten my money for a year at the higher interest rate and now again told there is nothing they can do for me now.
In the wake of all this, I have asked myself a few question:
Were bailing their all these companies out with our tax money( I'm hit twice because I'm self employeed).
Where is the the bailout money going?
What are the feds doing to the companies because they are not financialy responsible?
What law did they break when they did what they did to me?
If there is a lawyer out there that hears more of this I know they will be just another lender that will be sued again. The news is already pointing that out today.