I took out a home mortgage from Sky Bank. During my closing I was signing all the documents concerning the Loan. When I got to the payments disclosures. I realized the agent had included Escrow payments for Insurance, Taxes and PMI. I stopped the loan proces as this was not what we had discussed previously.
In our previous discussions I wanted to go with a convential loan to avoid the VA loan funding fee. I wanted to pay the tax and insurance on my own. So, I just wanted to pay payments and interest on the loan.
When I stopped the process tina asked said well that was okay she could just get the documents redone and have them faxed. She so you don't want escrows for Tax and Insurance. I responded no I don't want to pay any escrows I just want to pay principle and interest. This occurred in March 2004.
In Dec 2004 I recieved a statement from Sky Bank showing I had been paying PMI on the loan. Well I was pretty upset as this was not what I wanted or what we had discussed. I called the bank talked with the loan agent and several others at the bank. Of course I was told there was nothing I could do, as I signed a PMI disclosure form. I said look my closing was pretty messed up and if I signed that form it had to be prior to me stoping the process. I was abruptly told that I was being less than truthful.
I researched my documents and found that I didn't recieve many of the documents in my package. So basically, the following is a just of what happened. I stoped my closing at 10:15 AM and instead of discarding the documents I had previously signed, the documents were included unknown to me after I completed signing the new forms including a HUD 1 form. I have now reviewed the RESPA and low and behold it appears to require the disclosure of PMI on the form. Amazingly it was not closed on the HUD 1 Form.
After building what I thought was a pretty compelling case I sent a highly detailed letter to the Federal Reserve Bank in Cleveland. Having recently in contact with the Federal reserve they don't think they can help me as the law according to them doesn't allow them to enforce contract issues. They are telling me that I will have to go to Court.
I feel this is an absolutely rediculous situation what happened in my case is obvious just by reviewing the plentiful errors on my documents. So I guess it's of to Federal Court I go as know what at Sky Bank can admit to a simple mistake. If there is a Lawyer out there who is interested and experienced I would be intersted. I have done alot af research, Truth and lending, Respa etc.
I believe I have a very solid case which can easily be made. I also researched the history of legislation on this subject and feel that anyone sitting on a jury would be flaburgasted by the things that took place in regards to my loan. Any help would be nice! I would not recommend the use of this Bank to anyone as I for one can't believe the lack of customer service I have recieved from them.