• Report: #429521

Complaint Review: Instamortgage.com

  • Submitted: Sat, February 28, 2009
  • Updated: Sun, March 27, 2011

  • Reported By:concord North Carolina
www.instamortgage.com Internet U.S.A.

Instamortgage.com Predatory refinancing / false information Internet

*Consumer Comment: I have had a loan with them for over 5 years

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Instamortgage.com contacted me about a refinance at the time I had a 30 yr. fixed mortgage that I was in for only six months I just purchased the home for $275,000. The home was originally apraised for 274,000. Instamortgage offered me $15,000 at closing with no closing costs they bumped the value of the home to $335,000 without ever setting up or sending a apraisal.

They fast talked me into a adjustable mortgage telling me I would be able to refinance it at any time. They also put the loan in my wifes name who has not worked for 5yrs. and showed no income with a 670 fico score. When i tried to get them to refinance this 1 yr. later because of the turmoil in the mortgage business and I just wanted a fixed loan they said they could not do it because my score is to low and my wife does not work.

Now I have found myself struggling as so many others are and find it very hard to handle the $1,760 a month payment this does not include taxes and insurance those i pay directly. As my payments become late they send it to the credit bereaus who lower the score even more. so by the time the adjustable kicks in my score will be nothing the payment will increase i will never be able to refinance, instamortgage will continue to harrase me and then cry to the government for a bailout.

The banks do not have to raise the rates at the adjustable term and then cry poor.I am searching for legal representation to this matter. I believe that first of all these banks get all their interest before any real money comes off the principal. this is ridiculous. They rake in the money while the principal stays the same raise the adjustable on you when times are bad. then try to foreclose to take the home from you and then sell it for a short sale and tack the difference owed on you as a judgement.

And if this does not work for them then they cry to the government who bails them out and I have to pay them all over again with my taxes. quite a scam the government and the banks have going there. When are we gonna stand and take our country back from these greedy scum.

concord, North Carolina

This report was posted on Ripoff Report on 02/28/2009 07:04 PM and is a permanent record located here: http://www.ripoffreport.com/r/Instamortgagecom/internet/Instamortgagecom-Predatory-refinancing-false-information-Internet-429521. 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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#1 Consumer Comment

I have had a loan with them for over 5 years

AUTHOR: JUSTDON - (United States of America)

Without knowing the dates that you did your home purchase or refinance I make the following comments only on assumptions;

I contacted InstaMortgage some five years ago during the big real estate boom when people were refinancing their homes and taking out equity like drunken sailors because home prices were rising faster than they could realistically keep up with. I had actually been in the mortgage business for years before the time I refinanced with them and had a good knowledge of what  the market was doing. I warned people that these 120% refinance deals were unrealistic and would come back to bite them when the market corrected itself. Well that didn't compute well with most of the general population because of greed and people just listened to the loan officers and pulled all their equity out to buy cars, other properties and toys not thinking of how they would pay there loans off.

I make my payments, on time. My property values have dropped as well, however I didn't pull unrealistic amounts of equity out either. But now people think the government should bail them out by renegotiating the amount they owe by the current value of their home. Why? Why should these people who stopped making payments at all get any kind of break for their greed. If you income and debts could afford you a $150,000 home, why did they buy a $300,000?
The greed of the banks coupled with the greed of the people pulling out equity are the cause of what is happening to home prices and the foreclosure problems we are experiencing now, not just the banks. Based on the $1760 payment on your $335,000 loan, it appears your rate is at about 4.8%. not a bad rate and if you could refinance into a fixed your rate would probably be about the same. Your problem is that you are among a large percentage of americans who felt you had
this whole real estate thing fiqured out that a home purchase is a source of income not a roof over your head and now YOU want the government to bail you out because the extra money you pulled out when you refinanced to buy you new car or pay off your credit cards is gone and now you can't make your payments. I'd like to feel bad for you but I can't. Instamortgage is in the business of making loans to people who state they have the ability to pay them back. Unfortunately many of these loan officers do not have the proper education in economics and are just trying to make a commission. We will all learn a valuable lesson from this economic meltdown, as the banks have that is why it is harder to get those fixed rate loans today.
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