• Report: #230281

Complaint Review: Clayton Vanderbilt Mortgage

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  • Submitted: Fri, January 12, 2007
  • Updated: Tue, June 26, 2007

  • Reported By:Brooklyn New York
Clayton Vanderbilt Mortgage
500 Alcoa Trail Maryville, Tennessee U.S.A.

Clayton Vanderbilt Mortgage This company engages in predatory lending practices and harrassment if you do not pay on the 1st of each month, ripoff Maryville Tennessee

*Consumer Suggestion: calls

*UPDATE Employee: Educate yourself before responding please..

*Consumer Suggestion: Vanderbilt plays dirty - I Feel you

*Consumer Suggestion: Feeling your pain

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4 1/2 years ago, my mother approached me about helping her purchase a manufactured home in South Carolina. As she has poor credit, she wanted me to buy the house for her as I had good credit. Unfortunately, the dealership where we purchased this house had a contract with Clayton Vanderbilt mortgage.

My mother is responsible for paying this mortgage, even though the loan is in my name. For about two years, the mortgage was reasonable. However, two years ago, the mortgage went from about $530 a month to nearly $700 a month. We were told that the increase was due to the increase in our home insurance rate.

My mother contacted the insurance company and they advised her that they didn't raise their rates but that Vanderbilt did. A few months ago, the mortgage was jacked up again-this time to $880 a month. The reason for the current increase is that Vanderbilt took it upon themselves to pay my mother's property taxes-something we just found out that they can legally do.

We have to pay them back for the tax money they shelled out. Mind you, my mother has since lost her previous job and now has a job that pays her less money, so she cannot afford this increase. I cannot help her pay this mortgage either since I live in New York and my rent is about the same as the current mortgage. I cannot afford over $1600 a month for two residences.

Since I am the legal owner of this house, whenever we are even 1 day late ( which in the last year has been about every month), I get harrassing phone calls from Vanderbilt nearly every day at both home and at my job. I have been told by a Leslie and numerous other rude and nasty people that they will beging foreclosure proceedings-even though we may have been only 15 days late.

At the time we purchased this house, I was lead to believe that the mortgage payment was fixed-meaning it would not change during the life of the loan. They are deceitful and prey on poor and working class people who are vulnerable and have few options. I am trying to refinance this mortgage with another lender, but it's impossible since many lenders won't touch manufactured homes. The ones that do have advised me that my debt to income ratio is too high.

My mother desperately wants to keep the house, but we cannot afford this astronomical mortgage and I cannot take Vanderbilt's harrassment. I don't know if this will do any good but I really need to vent.

Vena
Brooklyn, New York
U.S.A.

This report was posted on Ripoff Report on 01/12/2007 09:26 PM and is a permanent record located here: http://www.ripoffreport.com/r/Clayton-Vanderbilt-Mortgage/Maryville-Tennessee-37804/Clayton-Vanderbilt-Mortgage-This-company-engages-in-predatory-lending-practices-and-harra-230281. 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 4Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Suggestion

calls

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

jennifer meant well, find a letter online to cease and desist, send it certified and they have to stop calling you. recording is ok but will only help you in court.
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#2 UPDATE Employee

Educate yourself before responding please..

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

First off there is right at 400 account reps (this is not customer service reps) that each have an average of 1200 accounts each to maintain. The customer service reps are different and do not handle delinquent accounts. Total counting the loss mitigation, recovery, remarketing, bankruptcy, legal, titling, closers, corporate atty's etc are about 1500 people working in the main corporate office. There are other corporate offices also. The computer system does not even pull up the account until it is 9 days late. So we are not calling you one day late.

Also if you would read your contract it clearly states that if you do not provide acceptable insurance coverage on the home then they will place a leinholders risk policy that is recovered under advancement. (hint: this is under the insurance clause on your contract.) This is recovered at 10% per payment. escrow is different and most acquired loans do not have an escrow agreement. also there is nothing about a fixed payment. you are referring to fixed interest. Read the contract it clearly states that anything the leinholder has to pay out on your behalf will be recovered either in full or in payments.

the only time the tax department pays taxes is if you either have the escrow agreement or we receive a tax sale notice in which again in the contract it clearly states that if the taxes are owed then the leinholder has the right to protect their collateral at your expense. so if yo are not happy then your rep can go ahead and send you a tax notice of default which is a legal letter telling you to pay the taxes in full within 30 days and during this time you have to keep your payments up to date as well or you will still be in default of the contract.

yes these homes are titled at the dmv which means that unless land is tied up with it will be reported as a reposession if it is reposessed but if you read the contract it clearly states (under the default clause) that if a payment is not either a. made on time for the simple interest loans or b. within 10 days of the due date for conventional loans you are in default of the contract and the leinholder at that time can begin legal action against you. yes this does report to credit as a mortgage. Just signing a loan for someone does not mean you are not liable. where you sign it states that you agree with the terms of this contract and are legally bound by it.

It amazes me just how many people sign for family then get it in the end. If the relative has poor credit don't you think it is because they were not responsible in the first place with their finances? and you are signing a contract for up to 30 years that if they walk away they are not persued.. you are. i have a child and love her more than anything but i will not sign for her home. if she cannot get it because she ruines her credit then she will be fine renting. as far as the insurance and taxes go any letters received from the county are imaged and they will be more than happy to send the proof to you that the taxes were delinquent if you are not escrowed and you can always request a payment history. the calls are time logged recorded and documented.

we managers review them throughout the month and listen to the calls. we have a department that does this as well with each rep. They are recorded listened to and graded per fdcpa. I go on here to see if there is an actual customer that needs help but all i continue to see is people that do not read and just sign "things" and want to get out of their responsibilities or want something for nothing. it is sad really. most of the acquired loans are simple interest and that means the interest accrues from payment to payment. Do you realize how much $ they make off of you for not making your payment on time? a whole lot more than they paid for the loan! it is the consumers that do not realize what they signed that end up 10 years into a loan and have not paid anything off or in some cases owe more than the original loan because of the interest accrual. oh by the way the originated loans are conventional not simple interest so i guess vanderbilt isnt sticking it to their customers are they? seems like only chase and first merit and oakwood etc (the acquired loans) were getting the customers they signed to pay these loans that will never pay off.

Vanderbilt uses the original contracts and has poa over them. they do not abandon the homes that are vacant. remarketing reps get a percentage of the sale for a bonus. They work a regional area. I do not see these reps waisting their bonus on not selling the home. they do follow the state statutes for landlord leinholder laws and some states do not have provisions for the landlord. sorry, but in these states there is not any agreement with vanderbilt and they have no responsibilities to the landowner in these states. also if the home does not have value then they will write off the balance and sell to a 3rd party collector so that means that it is the customers responsibility at that point. again, sorry.
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#3 Consumer Suggestion

Vanderbilt plays dirty - I Feel you

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

If you are going to record - you do not have to advise you are doing so - it only takes one consenting party - obviously, if you are recording - you are that consenting party.

As for the incessant telephone calls from Vanderbilt, advise them that you wish no further telephone calls from them and/or on behalf of them and any further calls will be considered harassment - record your stating this to them. If they call again - take you and your tape to the prosecutors office and file crimminal complaint.

As to the taxes - it depends as to if the home is taxed as personal property or has been transferred to real estate taxes. Call the auditor's office, personal property tax division in the county where the home is located and verify the amount. Remember, this really is not a "Mortgage Loan" this is an installment loan, manufactured homes are by legal definition are a "Motor Vehicle, and are titled as such. I would do a bit more checking into how they can legally alter your contract - if a escrow account was not part of the deal.

Check out insurance with Foremost Insurance Company - they are the leading authority on manufactured homes and everyone I have advised to check it out has saved as much as 300.00 per year. Also, Farmers Insurance, aquired Foremost and if you have automobiles you will get further savings by insuring them with Farmers.

Repossession/Replevin, is very expensive and Vanderbilt has history of not wanting to do this and leave the manufactured home in the name of it's titled owner, this way they are not legally responsible for lot rent or taxes. Simply put they don't want own a manufactured home or the expense thereof. These homes depreciate faster than cars.
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#4 Consumer Suggestion

Feeling your pain

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

I am so sorry to hear what you're going through. I have my own report on here somewhere, but I am learning that with this "company" You have to start making a paper trail. Find your original contract that shows it's a fixed rate. Also anytime you have to speak with them, record the conversation, of course for legal reasons you have to let them know you are recording it. They record us, for " training purposes" I had a very hard time with this company from the day they took my mortgage over.

Then I finally got to where I could send my payments through epay at my bank, and was there faithfully the 9th of every month. Until this month. On the 12th at 8am I get a call wanting to know where my january payment was. After talking to them, and calling my bank, it was sent to them on the 4th,so my bank questioned what they did with it.

It posted to my bank account on the 9th, but vanderbilt didn't show it until the 16th. Make sure you have all you paper work, and make sure you keep any and everything you get from them. you can also contact your attorney general, and their attorney general, and it might not hurt to contact the FTC. I wish you the best of luck.

paulette
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