EMC Loan Moification SCAM Lewisville, Texas

To whom it may concern,

I am writing to you today, to bring t light what I feel is possible fraudulent practices by my mortgage company; EMC Mortgage Corporation and the government Making Home Affordable loan modification program.

Approximately one year ago this month (July 2009), I started the process of a loan modification that the government had made available. Along with faxing the proper documents over to my Mortgage Company; I physically discussed the paperwork over the phone on two or three occasions to make sure that all paperwork was in to complete the modification package. I was then told the following information:

1.       The new amount of my monthly mortgage payment would now be $XXXX.00. Dropping my monthly payment by almost $500 per month.

2.       This is a trial period that last 60-90 days until completed and that it would also be my new rate after the trial period is over.

3.       On the first of every month I have to go to a Western Union and pay additional money to send the total amount do. Then I must come home and call in a transfer control number proving I sent it in. Was also told not to be late during the trial period or the program would be canceled.

4.       At the beginning of November 2009, I called after I made my monthly mortgage and was told that it is almost complete, not to worry about anything just keep making the monthly payment. This is a government program, Mr. Schmidt, your package is good and complete, they just take awhile; no need to worry. This is what I was told!

Then around the end of December beginning or January, EMC Mortgage called me and said that they needed new documents to update the file. I gathered the files on the same day and went directly to Staples and faxed the document s over to them. This cost almost $45 for the faxes. I went home and received verbal conformation that they received all documents.

From November  2009, including this month July 1, 2010; I continued to make my monthly payment on time as requested.  I then continued to place phone call to EMC Mortgage Company about my modification and was every time I called, everything is fine Mr. Schmidt, this is a government program and it just takes time. Just continue doing what you are doing.

I continued my calls 2-3 times a month to make sure that this modification goes through and we dont lose our house and have a place to raise our 3 children. Starting in February 2010 until June 2010, I was told that everything is fine, all docs are in, and we are just waiting for an underwriter to be assigned.  5 Months for an underwriter to be assigned? WHY? Makes no sense!

Sometime around the middle of May, EMC Mortgage Company called the house and talked to my wife while I was at work. They confused her enough on the phone that she called me upset stating, We are not going to get the modification. I called the next day and the person I talked to on the phone told me, that my wife misunderstood what was being said and that everything is fine and; what paystubs as proof of income was. I was then told what they were going to use was the deposits going into my bank account and that will be fine as proof; and that the modification should be complete any time now. GREAT!

I made the payment in June 2010, and made my usual 2-3 phone calls over the month to see when it would be done. The same answer that was given every month over the past year was given again.

 Now, July 1, 2010; I went to the bank, pulled out the money, sent it by Western Union, and called in the transfer control number. Then I placed a phone call, again, to see when I should be getting the completed package. The customer rep on the phone told me that the final approval for the modification was completed and the package was being sent via UPS/Fed Ex on the 2^nd or 3^rd. It was about time, something that was supposed to take 60-90 days took almost a year start to finish; but we stuck with it and FINALLY it was done! HAPPINESS and RELIEF that our home was secure.

Around 1 pm every day we get our mail delivered. In our mailbox this day, July 1, 2010, we received an envelope from EMC Mortgage Company. When I opened it was a notification letter.  But, not a notification letter just discussed on the phone.

This letter stated the following:

                EMC Mortgage Corporation is writing to notify you that the Trial Period Plan offer through the Making Home Affordable (MHA) modification program for the above-referenced account has expired for the following reason:

                (X) We are unable to offer you a Home Affordable Modification because you did not provide us with the documents requested. A notice, which listed the specific documents we needed and the time frame required to provide them, was sent out previously.

                If you were previously on a trial period plan making reduced payments, please be advised that the actual payment status under the original terms of your loan will begin to be reported to the credit bureaus, which may result in negative credit reporting if you do not cure any delinquency. In addition, if your loan was in foreclosure at the time of the trial period plan offer, the foreclosure process may resume without further notice.

Now you can imagine how irate I got, considering I just got off the phone 20 mins. Before this letter came in the mail and was told, The modification was complete and paperwork was being sent out. I called up and was being bounced around from person to person for over 1 hour.  Finally, the person Tim I talked to explained to me that I didnt qualify for the government program, but I did qualify and was approved for the in-house modification program. The in-house modification program? I screamed? I never filled out paperwork or discussed an in-house modification program! What is this and what are the payment changes? I qualified for a program that I did not file for and it is saving me almost $200 per month off my payment. I was then told that the paperwork is already being sent out. I have to sign it and send it back as soon as I get it. I asked what would happen if I dont because this is not the program I filed for and as of today was told that my modification went through. I was told that the original terms of the mortgage apply, because of the difference of the payment between the original and government program that I would be a total of 5 months behind now, everything would be reported to the credit companies, and foreclosure proceedings would start immediately. ****Yes! I flipped out.*****   I was then told the other option was that we could do a short sale of the property; and I screamed that I am not interested in selling my house I have a family wants to live here, that is why I have been doing this program for the past year, following all procedures, and calling 2-3 times per month making sure everything was good. And EVERY month including last month (June 2010) I was told by EMC Mortgage Company that everything is good, the package is complete, we are waiting for an underwriter to be assigned, and you have to understand Mr. Schmidt that this is a government program and things take awhile. But, dont worry everything is good! If I wasnt worried and concerned about not having a stable home for my children to grow up in then I would not have been calling 2-3 times a month for almost the last year.

I feel that my mortgage company is practicing fraudulent, shady, misleading, and unethical mortgage practices towards the people who hold mortgages with them; and I want to do everything I can to expose them of the practices.

I followed all rules of the modification program and here is the breakdown of the letter above.

1.                         Any and all documents were submitted within a 24 period of the mortgage companies request and as per programs guidelines.

2.                         Payments were made on the 1^st of every month by Western Union and the transfer control number was called in, as per programs guidelines.

3.                         The government program was to be completed in 60-90 days. Which was to be completed by October 31, 2009, as per EMC Mortgage Corporation.

4.                         Starting November 2009 thru July 1, 2010, I was in constant contact with the mortgage company, calling 2-3 times per month making sure everything was good, so I can provide a safe and secure home for my family. Each time being told that everything was good, and it is a government program and it takes time. Just continue to make the payments and everything will be fine.

5.                         I was going to save almost $500 per month on the government program, but because of some unknown bogus reason, after 1 year, I mysteriously do not qualify for anymore because of said reason of not providing documents. Although, every call monthly, I was told by employees, for who represent EMC Mortgage Company that everything was good, including up to said month of June 2010.

6.                         I then qualified for an in-house modification program(that I was never informed about ever) that would save me almost $200 per month off my original payment; but would still give EMC mortgage $300 + per month more than if they completed the government program I was participating in for the last year. So now my mortgage payment increases more than $300 per month over what I have been paying the last year, which puts another financial strain on my family, and was why I was doing the program. To provide a safe and secure place from my family to live.

7.                         Was told that if I dont sign and agree to the in-house modification program, that my house would go into instant foreclosure proceedings. So, at the time of this letter I have no choice but to sign it so I can provide a safe and secure home for my family. 

I was watching a short story on CNN Headline News about 1 month ago, how millions of people have applied for this program but a very small percentage of them have been completed yet. And there was really no answer as to why.

The following link: http://www.ftc.gov/opa/2008/09/emc.shtm is an article from where EMC Mortgage Company paid a fine of $28 million dollars for unlawful practices. Well I think they are at it again.

 I want to do everything possible to expose this and do what I can to make sure hard working families are not being taking advantage of like I have.