I refinanced my mortgage loan in 1999 with a second lender. As I was going through the process for the purpose of paying off debts, the fees kept getting larger. By the time I got through it had gone from approximately $2,500 to $5,000 at closing. I did not find out that we would not have an escrow for taxes and insurance until my husband and I signed all of the paperwork.
Our mortgage was placed with Midland Mortgage Co. in the beginning. We did not anticipate that with not having an escrow as we did in the past, that we would have so much difficulty and not be able to pay our taxes. An escrow should be required in a mortgage contract for every company.
Also, during the refinancing our interest rate which was at 10% increased, not decreased, to 12%. During this time our income decreased when my husband retired, and we were not able to keep the insurance. We got behind in other bills too. Of course, though my credit was not good, it only made things worse when we had bills in arrearage.
After a little while we got a letter in the mail that our mortgage was transferred to Fairbanks Capital Corporation. I have not been able to keep up my payments as I should because the monthly mortgage payment is too high at the interest rate we have been paying. The many fees Fairbanks charges add up quickly.
With not being able to pay the taxes over a long period of time, I am told I owe thousands and thousands of dollars. For a long time I asked for help, like a deferral payment, when I encountered possible foreclosure, but I did not get this resolved and no one offered suggestions, except to make the required payment. Sometimes when I would make arrangements, the harassing calls would still come in until the payment was actually received.
Just recently I was put on a forbearance plan where I thought this would be a deferral to keep our house from foreclosing. Instead the payments are higher, but Im not really making enough of an extra payment to make up for my late payments.
I feel if this account had been set up correctly from the beginning with an escrow we would not necessarily be in this situation. Can somebody please help me?