World Savings Hidden Clauses Caldwell, Warren New Jersey

Shortly after my 26,I closed on my home in March of last year and believed that I got a good deal considering that I was a young first time buyer. Everyone, including family had assured me that I had gotten a good rate. I purchased the home with a conventional loan via world with an interest rate of 5.25.

Prior to closing, the loan officer who was assigned to me, did not process my paperwork and allowed all my information to sit on his desk for over 1 month. Mind you, during this time, he told me, my attorney and the seller that everything was fine and that my closing date would be in Dec. 2002. I had already put my deposit down on the home and was told that my mortgage was approved.

I waited and waited and didn't hear back from the officer, when I finally got intouch with him, he told me that I had to resubmit all of the paperwork world required, because they had expired. I was in disbelief. Based on his assurance that the house would close, I had given my notice to my landlord and had to move out within the next couple of weeks. Where was I to go? I got on the phone and called anyone I could until my complaint got to the vice-president. He and his staff contacted me and personally apologized for the officer's actions and told me that they would pay for my closing cost because of the problems that I had experienced.

At closing, my husband and I honestly did not remember World telling us that them paying our closing cost would result in a five year lien on our home because they took the funds from the federal government assistant housing program.

My husband and I found out when we attempted to get an equity line of credit to do debt consolidation. We had acquired enough equity in the home but no one would help us. The first company said that I had two mortgages on the home and I disagreed with them because I only knew of one. The second company said that when they did the title search I only had one lien which was the 1st mortgage. I was really confused at this point.

When I asked World what was going on, they informed me that the closing cost was a grant with a five year lien. I was shocked. I informed them that on a title search done on my home, it only showed one lien. They said that the closing cost was tied into the first mortgage. They even sent me letter saying that I could pay off the second lien, however, the money could not come from the other bank that I am trying to get a loan from. This is considered predatory lending.

I went over my closing paper and there was nothing stating that the money couldn't come from another lender. Even the pay off letter was sent to a lender that was willing to give us a loan. For every year that I live in the home, the loan would be decreased 20%. I tried getting an equity line of credit through World but was denied.

I don't understand the legal terminology I have read through the 30+ pages. The attorney was recommended to us from the seller and was familiar with World so I felt comfortable dealing with her. In hindsight I feel so naive.

The one terminology that I have heard through out us trying to get a equity loan has been predatory lending. I don't quite understand it but how can another lender get in trouble for paying off my 2nd lien when World has given them the written okay to do so? and Why can't another lender help me?

If someone could answer me, please help me. I feel trapped and besides myself at this point in time. All responses and suggestions would be greatly appreciated.

Georgia
orange, New Jersey
U.S.A.