Complaint Review: Full Spectrum Lending - Rolling Meadows Illinois
- Full Spectrum Lending Rolling Meadows, Illinois U.S.A.
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- Category: Mortgage Companies
Full Spectrum Lending ripoff Rolling Meadows Illinois
*Consumer Suggestion: Stop these predators..........
*Consumer Suggestion: Stop these predators..........
*Consumer Suggestion: Stop these predators..........
*Consumer Suggestion: Stop these predators..........
*Author of original report: update
*Consumer Suggestion: Pay Option Loan Flexibility
*Consumer Suggestion: Pay Option Loan Flexibility
*Consumer Suggestion: Pay Option Loan Flexibility
*Consumer Suggestion: Pay Option Loan Flexibility
*Author of original report: More details... The things that were not told to me were that my negative am could go as high as $6,000 a year and that I could only stay out of this by making interest only payments.
*Consumer Suggestion: Negative amortization does not need to occur. You control that!
I was sold a pay option ARM without being fully disclosed the risks involved. In fact, the risks were minimized and misrepresented. The representative knew full well my inability to offset a large negative amortization that he did not disclose and that he minimized when he put me in the loan.
I will add details and updates once I hear from Full Spectrum Lending's complaint department, Lisa Madigan (Illinois State's Attorney)on predetory lending, Better Business Bureau and/or the Federal Trade Commission.
ANy other suggestions are welcome.
Katheryn
Troy, Illinois
U.S.A.
This report was posted on Ripoff Report on 04/01/2006 10:14 AM and is a permanent record located here: https://www.ripoffreport.com/reports/full-spectrum-lending/rolling-meadows-illinois/full-spectrum-lending-ripoff-rolling-meadows-illinois-184425. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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#11 Consumer Suggestion
Stop these predators..........
AUTHOR: Angie - (U.S.A.)
SUBMITTED: Monday, October 16, 2006
Ted Janusz wrote a book that exposed the industry's secrets to the public in his book Kickback: Confessions of a Mortgage Salesman (Insight, 2005). Read it and give it to someone you know so they will know how to protect themselves from these preying scumbags. Spread the word!
CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.
#10 Consumer Suggestion
Stop these predators..........
AUTHOR: Angie - (U.S.A.)
SUBMITTED: Monday, October 16, 2006
Ted Janusz wrote a book that exposed the industry's secrets to the public in his book Kickback: Confessions of a Mortgage Salesman (Insight, 2005). Read it and give it to someone you know so they will know how to protect themselves from these preying scumbags. Spread the word!
CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.
#9 Consumer Suggestion
Stop these predators..........
AUTHOR: Angie - (U.S.A.)
SUBMITTED: Monday, October 16, 2006
Ted Janusz wrote a book that exposed the industry's secrets to the public in his book Kickback: Confessions of a Mortgage Salesman (Insight, 2005). Read it and give it to someone you know so they will know how to protect themselves from these preying scumbags. Spread the word!
CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.
#8 Consumer Suggestion
Stop these predators..........
AUTHOR: Angie - (U.S.A.)
SUBMITTED: Monday, October 16, 2006
Ted Janusz wrote a book that exposed the industry's secrets to the public in his book Kickback: Confessions of a Mortgage Salesman (Insight, 2005). Read it and give it to someone you know so they will know how to protect themselves from these preying scumbags. Spread the word!
CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.
#7 Author of original report
update
AUTHOR: Katheryn - (U.S.A.)
SUBMITTED: Thursday, April 20, 2006
Thanks for your information. I used it to do further calculations. I would have to make 20% return on any or all investments in order to offset the cost of this loan to me.
#6 Consumer Suggestion
Pay Option Loan Flexibility
AUTHOR: Anthony - (U.S.A.)
SUBMITTED: Sunday, April 02, 2006
These loans are the most flexible of any long term mortgage out there today. Any credible financial planner should inform you that if you are going to accrue deferred interest on your mortgage, you should offset it by a long term investment.
The $6000 Neg Am amount you stated in your response is really tied to a percentage of the whole mortgage amount. In other words, if you have a $100,000 mortgage, you will not be able to defer more than 10-15%, or $10,000-$15,000 before your loan is recast, meaning a new low payment rate is established. All of these loans are tied to different indexes and have fixed margins.
I have one of these loans with another lender and have a 10% maximum deferred interest window before mine will automatically recast. Last year I deferred $9500 in interest, of which $7750 was invested in a life insurance product, and after my insurance costs, the investment portion showed about a 13% gain. My neighborhood property values appreciated at approx. 9%. I consider this an exceptional performance, but I have a plan.
If you are uncomfortable with this loan, seek the advice of a reputable financial planner to examine your overall financial picture.
If Countrywide put you in a Pay Option loan and you really can not afford the different payment options, then shame on them, that is professionally irresponsible.
#5 Consumer Suggestion
Pay Option Loan Flexibility
AUTHOR: Anthony - (U.S.A.)
SUBMITTED: Sunday, April 02, 2006
These loans are the most flexible of any long term mortgage out there today. Any credible financial planner should inform you that if you are going to accrue deferred interest on your mortgage, you should offset it by a long term investment.
The $6000 Neg Am amount you stated in your response is really tied to a percentage of the whole mortgage amount. In other words, if you have a $100,000 mortgage, you will not be able to defer more than 10-15%, or $10,000-$15,000 before your loan is recast, meaning a new low payment rate is established. All of these loans are tied to different indexes and have fixed margins.
I have one of these loans with another lender and have a 10% maximum deferred interest window before mine will automatically recast. Last year I deferred $9500 in interest, of which $7750 was invested in a life insurance product, and after my insurance costs, the investment portion showed about a 13% gain. My neighborhood property values appreciated at approx. 9%. I consider this an exceptional performance, but I have a plan.
If you are uncomfortable with this loan, seek the advice of a reputable financial planner to examine your overall financial picture.
If Countrywide put you in a Pay Option loan and you really can not afford the different payment options, then shame on them, that is professionally irresponsible.
#4 Consumer Suggestion
Pay Option Loan Flexibility
AUTHOR: Anthony - (U.S.A.)
SUBMITTED: Sunday, April 02, 2006
These loans are the most flexible of any long term mortgage out there today. Any credible financial planner should inform you that if you are going to accrue deferred interest on your mortgage, you should offset it by a long term investment.
The $6000 Neg Am amount you stated in your response is really tied to a percentage of the whole mortgage amount. In other words, if you have a $100,000 mortgage, you will not be able to defer more than 10-15%, or $10,000-$15,000 before your loan is recast, meaning a new low payment rate is established. All of these loans are tied to different indexes and have fixed margins.
I have one of these loans with another lender and have a 10% maximum deferred interest window before mine will automatically recast. Last year I deferred $9500 in interest, of which $7750 was invested in a life insurance product, and after my insurance costs, the investment portion showed about a 13% gain. My neighborhood property values appreciated at approx. 9%. I consider this an exceptional performance, but I have a plan.
If you are uncomfortable with this loan, seek the advice of a reputable financial planner to examine your overall financial picture.
If Countrywide put you in a Pay Option loan and you really can not afford the different payment options, then shame on them, that is professionally irresponsible.
#3 Consumer Suggestion
Pay Option Loan Flexibility
AUTHOR: Anthony - (U.S.A.)
SUBMITTED: Sunday, April 02, 2006
These loans are the most flexible of any long term mortgage out there today. Any credible financial planner should inform you that if you are going to accrue deferred interest on your mortgage, you should offset it by a long term investment.
The $6000 Neg Am amount you stated in your response is really tied to a percentage of the whole mortgage amount. In other words, if you have a $100,000 mortgage, you will not be able to defer more than 10-15%, or $10,000-$15,000 before your loan is recast, meaning a new low payment rate is established. All of these loans are tied to different indexes and have fixed margins.
I have one of these loans with another lender and have a 10% maximum deferred interest window before mine will automatically recast. Last year I deferred $9500 in interest, of which $7750 was invested in a life insurance product, and after my insurance costs, the investment portion showed about a 13% gain. My neighborhood property values appreciated at approx. 9%. I consider this an exceptional performance, but I have a plan.
If you are uncomfortable with this loan, seek the advice of a reputable financial planner to examine your overall financial picture.
If Countrywide put you in a Pay Option loan and you really can not afford the different payment options, then shame on them, that is professionally irresponsible.
#2 Author of original report
More details... The things that were not told to me were that my negative am could go as high as $6,000 a year and that I could only stay out of this by making interest only payments.
AUTHOR: Katheryn - (U.S.A.)
SUBMITTED: Sunday, April 02, 2006
What was misleading was being told that I could make 3 to 4 minimum payments and 1 interest only payment and not go into negative am. I was told that the negative am would not be more than $2,000 a year and that my house increasing in value would offset that along with the one interest only payment every 4th payment. With all this being in place, I was also told that I could make this payment arrangement and purchase an investment piece of property and this would bring me into cash flow.
The things that were not told to me were that my negative am could go as high as $6,000 a year and that I could only stay out of this by making interest only payments. This would be making as much as $500 a month more on my monthly payments to just pay an interest only payment. I would not be paying down the principal. This could not be offset by my house increasing in value as it took my home two years to reach that figure in the last two years, based on the last two appraisals (the last one done by Countrywide's choice). My loan officer was fully knowledgeable of this. I could not begin to purchase a piece of investment property that would have the potential of putting me in a cash flow.
It was my finally calling CW's customer service to be sure if it were the 3 or the 4 minimum payments and the 4th interest only payment would offset the negative am. This is when I discovered that I had been misled by non-full disclosure. I talked to 4 different people in CW company, who were directed to me by customer service, just to see if they would be consistent. Even one of these said that their loan officers need to explain these pay option arm loans better.
When I called back to talk to my loan officer and his super, they told me that they sell these all the time and that basically their customer service isn't informed.
I have my notes, my telephone registers, my son and his notes. My son was with me on a conference call. I have all this to verify my statements. I asked my loan officer for their telephone records of taped calls, but my loan officer said there were none.
I did receive a call from CW after all of this and they asked me to do a survey to which I was able to tell most of what I stated above.
I have written to Lisa Madigan and made a call to someone on predatory lending.
I am also still awaiting a promised call from a manager above my loan officer at CW. I have left 3 messages on his voice mail.
I have since done research into predatory lending. It seems to be prevalant in the metro-St. Louis area, where I live. It also targets seniors, which I am, and a minority group.
I am asking that this problem be rectified.
I have not called the BBB yet and will reconsider after what was written in the rebuttal.
#1 Consumer Suggestion
Negative amortization does not need to occur. You control that!
AUTHOR: Steve - (U.S.A.)
SUBMITTED: Saturday, April 01, 2006
You will get a payment coupon each and every month. There will be different payment options you can choose each month. You can control whether or not there will be negative amortication on your loan.
If you choose the payment option that is called "Interest Only" or "Fully Indexed Rate" your loan balance will not increase by negative amortization. This payment option is variable. The payment will probably change every month based on what the index does.
I understand that you may have been mislead, and that is wrong. However, if you choose the interest only payment, Option #2, your loan will not go negative.
In fact, you can always pay extra principal on the note if your goal is to pay down the balance.
While it is wrong if you were mislead...YOU have the control here.
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