• Report: #423008

Complaint Review: David Cadotte At Quicken Loans

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  • Submitted: Wed, February 11, 2009
  • Updated: Mon, February 16, 2009

  • Reported By:Manhattan Illinois
David Cadotte At Quicken Loans
www.quickenloans.com Livonia, Michigan U.S.A.

David Cadotte At Quicken Loans Lied about terms and rate 20555 Victor Parkway, Livonia, Michigan

*UPDATE EX-employee responds: Annoying, but not the end of the world

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Back in 2006, I applied for a home equity loan to finish out my basement for my business. I was only looking for $15,000 to $20,000. Qucken loan took my app and within a few days, they said we should be able to get you the loan. I told them what I wanted, which was a loan with a fixed rate and 10 years max. They came back and told me the shortest was a 15year, but if I made extra payments, it would cut into the princable. I said fine.

Now they knew I had a guy coming out to start work on my basement and I need an answer if it was approved and when will the closing date be. The worker needed to know, because if it was going to take a few more weeks, he would have to start another project, then come back a month later to start mine. Quicken told me everything was good and gave me a closing date. I called the guy and told him the info. The guy purchased the material and dropped it off at my house.

A day before closing, Quickens called and said they had a problem, but it could be worked out. I was mad. They delayed the closing a few days, my rate went from 9% to 12.5%. Their excuse was that I was a little more of a risk, but they could get it done at 12.5%. But they also said, I would have to borrow $42,000 to pay off, other debt and they could get things going. I agreed to that! They said it will be nice to have just one payment.

I closed and when I recieved my second statement, I noticed nothing went to the principal. I called and asked why this was. They informed me my loan was an interest only loan. I tild them the terms I agreed to, with one was to have a 15 year loan. I wanted it paid off no longer than 15 years. They told me it's too late, you signed the contract and cashed the check. Maybe we can refinance you. Then they turn around and sold off the loan to a foriegn bank and a company called Select Porfolio Services handles getting the payments for them.

So now I am stuck with a loan, paying $500 a month to all interest. At the end of this 15 year loan. I will still owe $42,000.

I am very upset and hope someone will be able to help me!!!

Daniel
Manhattan, Illinois
U.S.A.

This report was posted on Ripoff Report on 02/11/2009 02:17 PM and is a permanent record located here: http://www.ripoffreport.com/r/David-Cadotte-At-Quicken-Loans/Livonia-Michigan-48152/David-Cadotte-At-Quicken-Loans-Lied-about-terms-and-rate-20555-Victor-Parkway-Livonia-Mi-423008. 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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Updates & Rebuttals

#1 UPDATE EX-employee responds

Annoying, but not the end of the world

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

I understand your frustrations and can only say that it is not unique to Quicken. I am a former employee and I'm not here to comment on the company but rather to give you a hand. It sounds like you did all of this during the middle of the big mortgage meltdown. One of the big fallouts from this is that 2nd mortgages became incredibly hard to get and very limited in their options (I.E. 10 years, 15 years, etc.) literally overnight. It sounds like they were able to scramble and find a soultion for you. You may be stuck in the mortgage your are in due to falling home values, but the interest rate appears to be pretty good at 12.5%.

I know that you don't like the fact that it's an interest only payment, but there is a pretty simple solution if you want to pay it off. Here it is: The interest only payment on a $42,000 loan at 12.5% would be $437.50 per month. If you only pay that each month you will never pay it down and end up owing the exact same $42,000 at the end of the loan. All you have to do is pay a little bit additional each month to pay it off. Here are some examples (assuming a $42,000 loan at 12.5%):

To pay it off in 15 years pay $518 per month
To pay it off in 10 years pay $615 per month
To pay it off in 5 years pay $945 per month

Again I'm not trying to get into right or wrong, I just thought I might offer you a simple solution. I hope everything works out for you!
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