HouseHold Finance Corp. $38,000 later and still paying on a $20,000 2nd mortgage Federal Way Washington

We know exactly what you are talking about. We are going through the same thing. We had tried to refinance with them only to be told our appraisal did not come in high enough. When the our loan was written 3 years ago, there was no appraisal done and they ended up sticking a 3rd mortgage onto our property. At the time the other 2 mortgages were around $36,000 so with this loan in the amount of $31,000, that made our property supposedly worth $67,000. And this was even done without the appraisal. Now since we tried refinancing they did an actual appraisal. It came back at $55,500. Nothing on the property has changed since the 3 years prior so how can they estimate a figure of over $11,500 more 3 years ago? Screwy.... Anyways, we tried to refinance wtih different lenders and each one said the house value is not worth and 3 mortgages together. One of the lenders was nice enough to give us a number to the Office of Banks and Real Estate to submit a complaint. That is what you may want to do. You can find them on the internet at http://www.obre.stat.il.us. We have faxed back our complaint and they are suppose to get in contact with HFC to see what is going on. I will let you guys know when we find out how this turns out. Hang in there, I know we have felt like just giving up...giving up our home..for our sanity but we've held off to see what we can find out.

You didn't indicate the term of the loan or the interest rate. However, with the amount already paid and the amount remaining that you quoted, it does seem that you have indebted yourselves to at least a 20% interest rate. But how could this be? Even in 1997 one could get a loan for around 8%, or even less.

You actually agreed to pay back over $75,000 for the privilege of borrowing less than $21,000? Something is not correct, either with the information that you offer or with this loan transaction!

Did you actually read what you were signing? Did you receive an amortization table from the lender prior to signing so that you'd know what you were getting yourselves into?

You should also have received, read and signed, and have in your possession a BORROWER'S COPY of the Federal Truth In Lending Disclosure Statement. It must clearly specify annual percentage rate; total finance charge; number of payments; amount of each payment; and whether there is a penalty for paying off early.

The "Federal Truth in Lending Act" requires meaningful disclosure of credit terms and reflects a shift from let the buyer beware to let the seller disclose.

Required disclosures must be made:

Clearly and conspicuously
In meaningful sequence
In writing, and
In a form the consumer may keep.

Required Disclosures Under the "Federal Truth in Lending Act":

Identity of the creditor
Amount financed
Itemization of amount financed
Annual percentage rate, including applicable variable rate disclosures
Finance charge
TOTAL of payments
Payment schedule
Prepayment/late payment penalties
If applicable to the transaction: (1) Total sales cost, (2) Demand feature, (3) Security interest, (4) Insurance, (5) Required deposit, and (6) Reference to contract.

When paying off my mortgage, my lending institution was attempting to collect approximately $400.00 more than owed.

I researched to find the above information and presented my case. They presented their logic but as soon as I mentioned my rights under the Federal Truth in Lending Act and produced my copy of the disclosure statement, the paid-in-full and satisfied stamp was on my paperwork very quickly and I even received a thank you, sir for my business. End of story!

Keep in mind that IF the lending institution didn't fully comply with this law, you have a federal case against them.