BACKGROUND:In 2001 I was talking into taking out a mortgage with Hfc/Beneficial.Altough my home was paid for had several high interest credit cards. The GFE( good faith estimate) I received was for $56,000 for 15 years @$585.00 per month. When contract was signed became $63,000. When first statement was received balance was $71,000 @$794 per month. When I ask about this they stated I could pay off balance plus $7100 prepayment penalty.Since I had already paid off other bills was no way I could do this.In 2002 was advised by Commonweath of Kentucky Attorney General's office of lawsuit against Hfc/Beneficial. Read further for flagarant violations of that agreement.
PRESENT HORRORS: pursuant to 2002 settlement between Ffc/Beneficial and the 50 attorneys-General and the District of Columbia- Article 5 in part ' all real estate secured loans closed between 1/1/1999 to 9/30/2002 prepayment penalties are not payable after 24 months from the origination of said loan'
In March of 2004 I filed for protection under bankruptcy. As part of that bankruptcy proceedings I reaffirmed the mortgage.Follows is a description of how Hfc used that reaffirmation to violate the 2002 settlement and add 1000's of dollars to account balance. In April 2004 my attorney received a letter from Hfc stating ' Account balance equals $65,506.66 this amount includes all monies due past and present'. This was signed and sent to Hfc when we received the reaffirmation papers back the balance was $67,891.74
which included $2385.08 in deferred interest.
The reaffirmation was dated for a first installment to become due on 06/30/2004 to give bankruptcy time for discharge.In7/2004 an amount of $6800 was added and hidden on the back side of account. This was not discovered until I had arranged refinancing in March of 2006. This constitutes an interest charge of $6800 in LESS THAN 30 days. However the prepayment penalty originally stated on the loan was 10% on outstanding balance. Therefore it appears Hfc had treated the reaffirmation as a refinance and added the prepayment penalty to the loan as deferred interest well after the 24 months allowed by the settlement.
Re: 2002 settlement Part 20 para B ' the amount of deferred interest and interest short as of the date of last payment shall be disclosed on the Borrow's monthly billing statement'
The $6800 deferrment of July 2004 does not now or never has appeared on monthly statement. It was only discovered when I arranged refinancing in 2006.
Re: 2002 settlement part 25 para A ' Hfc shall provide payoff information within (5) business days of written request'
When refinancing was sought in 2006 payoff information was requested on 03/06/2006 it was not received until 04/27/2006 (51 days) and showed a payoff approx. $8000 higher than statement balance. When this placed the value of home below new mortgage threshold the refinance was not consummated. Hfc then added another approx. $1000 to the deferred interest for March and April. When I withdrew monies from 401K to bring account current Hfc withheld interest accured from last payment AND left deferred interest. This has happened at least 3-4 other times where I have allowed account to go 30 days in order to withdrew funds to make multiple payments and interest has been taken for both months from proceeds AND added to deferred amounts.
IT GETS WORSE: I have had insurance on my home under the same policy since 1990 uninterupted. In Sept. 2004 (note bankruptcy date) I received notice from Hfc that due to the fact that I had no insurance on my property they were placing hazard insurance on my property and adding it to my monthly payment. I called and informed them I had insurance and would not pay the extra and my insurance company faxed them a confirmation of insurance effective 12/15/2003 to 12/15/2004. This happened again in 2005 & 2006.
IT GETS REAL WORSE: In August of 2007 I again got a notice they were obtaining Hazard insurance on my home at a grossly inflated rate of $827.13 for $75000 of fire only insurance. My premiums are $523 per annum for $100000 and is full coverage with contents and liability (big differance)(( their insurance company)). My insurance company again( 3rd year in a row) sent them confirmation of coverage. In Sept. Hfc attempted to take an extra $68 out of my bank account for insurance premium. When I blocked withdrawals they began to call several times a day at which time I informed them they were getting nothing until they straightened out the payment amount. Finally they called on 12/15/2007 stating that my payments were returned to normal.
I advised I would go to tha branch office on monday to make the payment nad I wanted something in writing to show this was straightened out and would not occur again. On Monday 12/17/2007 I received a cancellation notice in mail staying I owed $514.31 in back premiums from 04/03/2007 ( note that they didnt notify me or try to increase payments until 08/03/2007.
12/22/2007 received call stating all I was due was the regular payments for Oct and Nov 07. Now it appears the insurance premiums and the Oct-Nov interest has been moved to the deferred account making them due at end of loan but still owed.
SAVING THE WORST FOR LAST: It now appears that a grand total of $3220.08 has been hidden on the backside of my account for 4 years of insurance on MY GIRL FRIENDS HOUSE in another county. A house which she sold in 2005. A house which I have copies of the deeds since 1984 showing I have never had any legal connection with. I have spoken to a local lawyer about filing an exorbinate punitive suit due to the fact is has came close to driving my 84 year old mother ( who lives with me) to hysterics and has caused a severe emotional and nervous strain on myself.
However when made aware of the complexity and the sheer number of various counts, the lawyer advised he felt inadaquate to pursue the case any further. Due to limited resources I do not have the means to retain a law firm to continue on an individual basis unless someone can direct me to a firm which will operate on a contiguency basis.
This is not all but only a synopsis with several minor issues left unaddressed
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