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Report: #59646

Complaint Review: Beneficial Mortgage Company - Freeport New York

  • Submitted:
  • Updated:
  • Reported By: Freeport New York
  • Beneficial Mortgage Company 83 West Merrick Road Freeport, New York U.S.A.
  • Phone: 516-378-2021
  • Web:
  • Category: Banks

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I am writing this letter to express my concerns on the mortgage plan that I have received through Beneficial Mortgage Company. Upon seeking information to refinance my mortgage, I have been made aware of the fact that my mortgage balance exceeds the market value of my home. Mind you, the loan that I have is not a negative amortizing loan.

I purchased the home, in October of 1999. I took out a second mortgage in 2000. I consolidated the first and second into one loan in May or June of 2002 at a rate of 10.5% at a time when rates were really low. Granted, my credit scores were low and I consolidated 2 low credit cards into the program ($5,000 total), it seems as if I was put into a deal that now is drowning me financially. In addition, the loan does not include my taxes and insurance that is an additional burden that is partially why I was looking for another loan.

Is it common practice for a lender to go over 100% LTV or re-finance without an appraisal? It is my request that this loan be researched in an effort to help me free myself from what I think was a scandalous highway robbery.

Lisa
Freeport, New York
U.S.A.

This report was posted on Ripoff Report on 06/05/2003 08:54 AM and is a permanent record located here: https://www.ripoffreport.com/reports/beneficial-mortgage-company/freeport-new-york-11520/beneficial-mortgage-company-beneficial-or-sacrificial-freeport-new-york-59646. 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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REBUTTALS & REPLIES:
0Author
8Consumer
0Employee/Owner

#8 UPDATE EX-employee responds

Beneficial is NOT Good Believe me noone else does who works there has any other experience from another place either

AUTHOR: Nathan - (U.S.A.)

POSTED: Tuesday, March 22, 2005
I worked for Beneficial for two years having no finance experience from anywhere else. (Believe me noone else does who works there has any other experience from another place either). This company fools its people into thinking that they're doing good things for people. Charging people 5% origionation and giving people high interest rates is doing no one ANY FAVORS. (To the consumer, no Beneficial does not share this outrages origionation fee with their sales people. Instead they give them a meager salary and give them a sad commission based on meeting nearly impossible goals that only about 8% of the staff hits).

The reason your mortgage is over 100% LTV is because you were charged a 5% origionation above and beyond the value of your home. This keeps you at Beneficial's mercy for a long time because it's going to take you a long time to pay this down. They act like your getting a good deal because they charge no prepayment penalty and no PMI when in actuallity your going nowhere because another financial institution won't touch you until your home is back at its value. And by the way, good luck selling your home without taking a huge hit because it's over its value.

They have just landed them a good customer for a long time. PRR is not Beneficial's idea. They just harp on it more than anyone. Countrywide's B paper has a much more aggressive PRR program as does WAMU, Wells Fargo, you name it.

Pay right rewards are hilarious. They charge you a high interest rate up front on a high principle that has 5% origionation added to it and continue to bring it down a measly .25% per year as you pay a ridiculous high payment. That principle balance goes nowhere for a very long time.

Does anyone understand that this a huge money making scam that is in the benefit of the lender?? This equals one thing; More money for them and someone who's screwed for quite a while. Only 5% of all of the mortgages Beneficial has actually stays with them through the 5 year PRR period. Most smarten up and get out only after paying an insane ammount of money.

If you work for Beneficial get out! You can make so much better money someplace else doing better things for people, charging much less fees and you actually get a majority of the fees you charge! This includes working with people with not so great credit. Not to mention other places let you have a life. And the best part is NO TELEMARKETING. Any what's a lag?? Losing customers is part of this game. No other institution hits your pocketbook for LAG or makes you feel like it's your job to make this up. I make my living now working with realtors and builders meeting their needs and by doing wonderful things for people. I now make about 5 times more than I did when I worked there and work about half the hours. I'm talking DSM, DGM money. I come and go as I please and there's no guilt for giving my family more time. No micromanagment, my life is my own.

If your a customer of Beneficial, I'm sorry. You should have done your homework. If you're an employee of Beneficial, smarten up. When you leave you'll understand what you were doing and it'll make you sick.
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#7 Consumer Suggestion

Been in litigation over this

AUTHOR: Tim - (U.S.A.)

POSTED: Saturday, January 08, 2005
Benefical/HFC had been in class-action litigation over issues nearly identical to your complaint for years. They have settled many of these suits. (I have the settlement dollars to prove it).

They were accused (and settled, not admitting guilt) of PURPOSELY loaning greater than 100% of the property's value FOR THE EXPLICIT PURPOSE of being able to foreclose... ie, steal your home from you.

Nice, huh?
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#6 Consumer Comment

beneficial/refinancing

AUTHOR: Karen - (U.S.A.)

POSTED: Saturday, January 08, 2005
Hi All

I did refinance. I did not go with beneficial, however i refinanced with my 1st mortgage company combined both mortgages have 1 payment now at a 15 year. You just have to do your homework, I am sure beneficial is a great place to work and it may help other people and their situation. It just was not going to help me at that time! It may have offered better terms, but that office was not offering me any! I am trying to KEEP my house not LOSE it, and if they had other programs I was not informed.
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#5 Consumer Comment

beneficial/refinancing

AUTHOR: Karen - (U.S.A.)

POSTED: Saturday, January 08, 2005
Hi All

I did refinance. I did not go with beneficial, however i refinanced with my 1st mortgage company combined both mortgages have 1 payment now at a 15 year. You just have to do your homework, I am sure beneficial is a great place to work and it may help other people and their situation. It just was not going to help me at that time! It may have offered better terms, but that office was not offering me any! I am trying to KEEP my house not LOSE it, and if they had other programs I was not informed.
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#4 Consumer Comment

beneficial/refinancing

AUTHOR: Karen - (U.S.A.)

POSTED: Saturday, January 08, 2005
Hi All

I did refinance. I did not go with beneficial, however i refinanced with my 1st mortgage company combined both mortgages have 1 payment now at a 15 year. You just have to do your homework, I am sure beneficial is a great place to work and it may help other people and their situation. It just was not going to help me at that time! It may have offered better terms, but that office was not offering me any! I am trying to KEEP my house not LOSE it, and if they had other programs I was not informed.
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#3 Consumer Comment

beneficial/refinancing

AUTHOR: Karen - (U.S.A.)

POSTED: Saturday, January 08, 2005
Hi All

I did refinance. I did not go with beneficial, however i refinanced with my 1st mortgage company combined both mortgages have 1 payment now at a 15 year. You just have to do your homework, I am sure beneficial is a great place to work and it may help other people and their situation. It just was not going to help me at that time! It may have offered better terms, but that office was not offering me any! I am trying to KEEP my house not LOSE it, and if they had other programs I was not informed.
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#2 Consumer Comment

These are great programs!!!!

AUTHOR: Elizabeth - (U.S.A.)

POSTED: Thursday, January 06, 2005
I am reading alot of complaints about HFC/Beneficial and their products offered. Our products are like any others, we offer sub-prime home equity loans for people with not so great credit. I am proud to say I done many good things for people over the last 2 years with the company and love it. I read that someone was complaining about a 7.73 rate reducing a .25% per year. This is an awesome program for some people with not the best fico's, and there is NO catch. Just make payments ontime, not going over 30days late. The rate does reduce, and never goes back up. Our loans can be any term requested, and will be paid off after that term. If you are late, you will have a late charge, possibly defered interest, just like any other co. If you get a revolving home equity loan, your balance will not go down, just like any other revolving loan or credit card. All revolving loans suck. I think our company takes a risk on bad credit customers and give them very good products. Unfortunately alot of our customers refi and end up saving about 500.00 on their bills, only to just rack up their credit cards again and blame someone else. I think there needs to be credit school for all people so they do not keep making the same mistakes over and over again. I have never lied to my customers and will not. I have had one complaint from someone and it really upsets me, I know I didn't do anything fraudelent, it's not worth it too me at all. I think customers hear what they want to hear. I explain things over and over throughout the refi process. I will retire with the company and live in a smaller city. All my customers know where I work and can find me there monday thru friday. I am not ashamed at all. I have saved soo many people from bankruptcy, foreclosure, and thousands of dollars of unsecured debt payments. Beneficial is a great company, there are just a few bad people in every industry. We try to make things right if there is a mistake. Oh, and yes, we go 100%loan to value. We don't charge PMI either. ALot of people would like this benefit. And yes, we sometimes do not need an appraisal, another customer benefit. I am proud to say we go 100%loan to value, alot of companys do not do this. They do 80% first mortgs and 20% second mortgages, same thing. Just better for us to put all into one.
And escrow, we don't have escrow accounts. Did you not know when you signed your papers? I know it is difficult sometimes to save for taxes and insurances, however, did you know your were charged a monthly fee for escrow handling with other companies? I agree, it would be nice to offer an option to people, but I tell them up front we do not offer escrow at this time. They understand and all is good. We have certain guidlines we have to meet in order to do a mortgage loan for anyone. We have to save customer at least $200.00 month(this takes taxes and insurance into consideration), give them cashout (without raising payments), consolidate delinquent debt, and term reduction. We have to meet at least 3 of these needs to do a loan. I think that is pretty good standards. All mortgage companies were under scutany for a period, this was a good thing. I was also in a class action suit against my old Mortgage co., this is why I now work in this field. People sometimes gets ripped off, but this doesn't sound like the case here.
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#1 Consumer Comment

Does not seem right

AUTHOR: Karen - (U.S.A.)

POSTED: Thursday, May 06, 2004
I am in the process of trying to refinance 1st and 2nd (2nd mortgage being a 10.50 interest rate i too contacted beneficial and i was told that they could do it with 100% value of my home (1st mistake) 80% is normal 100 is not. Then i was told my taxes could not be escrowed) which i currenlty have with my first(2nd mistake) They threw 2000 worth of bills in there(don't want that either. The final was the rate was 7.73 and each year the rate would go down a quarter providing i pay on time. Well i can't forsee the future and i am sure somewhere in there there is a catch to it. I don't want to start off owing ex 150,000 and in 10 years still owe 154,000. I always check the rip off report to see other peoples complaints so i know i won't be doing business with beneficial
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