• Report: #784539
Complaint Review:


  • Submitted: Tue, October 04, 2011
  • Updated: Wed, October 05, 2011

  • Reported By: Jenny G. — Sonoma California United States of America
Fort Washington, Pennsylvania United States of America

GMAC Ally Miscalculated Payments on 30 Yr FIXED Refi (making the loan look fantastic!). Ten months later they say we owe $4,000 to escrow AND they are increasing our payments Fort Washington, Pennsylvania

*Author of original report: Dug Up Some More Details

*Consumer Comment: If you can't get any answers from Ally


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We had a GMAC FHA loan with a 30 yr fixed rate, and about 21 months later we refinanced to a lower interest rate. We refinanced with GMAC and got a 30 year fixed rate loan at 4.375 %. We were originally told the loan would cost us around $4,000 . In the end the loan cost us around $8,000.00. However we were okay with that since the refinanced loan payments were $350.00/month lower than our original loan. We figured we would make back that money very quickly in savings.

Ten months into the new payment plan we have received a letter from GMAC stating that our escrow is underfunded and that we must send them over $4,000.00 by the end of the month or they will raise our payments by over $500.00/month (to a payment amount MUCH higher than what we were making at the previous higher interest rate). Even if we do send them the $4,000 they will raise our rate by over $200.00/month (making our total savings over the original loan $130.00/month). It will take us forever to try and make back our $8,00 now AND we have to pay them thousands out of our own pockets.

So: we spent $8,000.00 to refinance, and consequently our loan is now $8,000.00 higher than it would have been had we stayed with our original loan. And if we do not send them $4,000.00 from our own pockets the payments will balloon ABOVE what we were paying before refinancing to a lower rate. And this is on a FIXED 30 year loan.

This has to be illegal! I think they intentionally:
- Charged us way too much for the loan so they could get fat commissions
- Placated us into playing along that by intentionally miscalculating lower payments

Just before we refinanced we had around $5,000 in escrow. How did that disappear in addition to $8,000 being added to our loan amount?

NEVER felt so deceived and ripped off in my life. Can anyone help? We have a very short timeline. The payments with the additional $520.00/month are due starting 11-01-2011, and we just got this letter from them last night.

This report was posted on Ripoff Report on 10/04/2011 10:16 AM and is a permanent record located here: http://www.ripoffreport.com/reports/gmac/fort-washington-pennsylvania-19034/gmac-ally-miscalculated-payments-on-30-yr-fixed-refi-making-the-loan-look-fantastic-te-784539. 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 Author of original report

Dug Up Some More Details

AUTHOR: Jenny G. - (United States of America)

Poured through all the closing docs and paperwork, emails, etc. Found a couple of things:

- The loan cost us about $12,000.00, not $8,000. The loan amount went up by 8k, but they also took $4k from our previous escrow account. I was so thrilled by the LOW payments presented to us that I didn't pay a lot of attention to some of the final details.

- The miscalculation can be traced to an error in their data entry of our property taxes. 
- This is an FHA loan, and my understanding of the paperwork is that we cannot pay our own taxes, insurance, etc. That is the responsibility of the lender and they created our loan and payment structure to cover all expenses related to the mortgage.

- I sent email to GMAC over 5 weeks before we closed in which I clearly and explicitly told them what our property taxes are, down to the penny. I sent this email simply to make sure they got this right. There was NO other information in that email; this critical information was not buried in an unrelated  message. Before that I'd told GMAC on the phone that there could be confusion around our amount of properly taxes due to some tax being billed as Supplemental Taxes early on in the loan. Because of that I took the pains on my own initiative to send them email with the correct tax information outlined. NO Excuse for them inputting the wrong property taxes!

A little additional background:
- I was originally told that the cost of the loan would be around 3k with a payment reduction of 150/month. When the cost of the loan skyrocketed from there the ONLY reason we were okay with it was because we ended up with such a drastic reduction in the monthly payment amount ($350/month lowered payments)

I still see this as predatory lending. Up until ten months in no one told us the true terms of the loan (whether that be through error or scheming doesn' matter). 

We would NOT have been willing to pay $12,000 for a loan that only reduced our payments by $130/month. GMAC should pay for this mistake, not us!

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#2 Consumer Comment

If you can't get any answers from Ally

AUTHOR: voiceofreason - (United States of America)

You probably need to get a lawyer involved before Ally does anything nastier. Contact whatever state agency oversees banks/lenders and request they intervene. Sounds like real dirty work. That's a bank for you.
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#3 Consumer Comment


AUTHOR: Karl - (USA)

and let him, or her, know what transpired.

There is a chance that they can help you, since many of the state's Attorney Generals are suing banks for discriminatory and predatory actions against consumers, right?

Good luck to you.

***MORTGAGE ALERT: Don't forget to type in the following and read the Ripoff Reports for valuable information if you have a mortgage in the USA-

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