Conseco Finance cusotmer service ripoff harrassment Rancho Cucamonga California

Stacy, the reason why they were so hateful to you and said it was none of your business when asking who was going to be taking over for them is because they themselves don't know and they don't even know if they are going to be in business.

You see, Conseco Finance Unit is going on the auction block today (February 28th) and they will be parcelling out the divisions of Conseco Finance. Within Conseco Finance Unit, there are several distinct financial businesses...the financial services group which offers credit cards, lines of credit, and financing on consumer loans, the mortgage loan division which offers mortgages to consumers of real estate, the manufactured home loans division (Which is in big trouble) and several banks. These various divisions will be parceled out according to who is bidding on what. All of the other divisions look like there is a good chance they will be sold except Conseco Manufactured Homes Financing Corp. This is the one that is in real big trouble and has brought them all down.

The reason is that right now estimates of trailer and mobile home default inventory is estimated somewhere between 40,000 and 100,000 units. This is costing them millions of dollars to service. They have to pay the lot rentals, the taxes and the insurances on thesed defaulted double wide trailers. They also have to service the trailer and make sure the property is still saleable. They have so many defaulted trailers, they don't know what to do with them.

Today is the big day. Right now, there is only one Known buyer interested in the mobile home division and that is Fannie Mae which is planning on bidding $70 million dollars. If they get the bid, they plan on farming out the collection services and activities to another firm and will probably only concern themselves with the loans that are current. Current financial analysts and consumer groups estimate that Conseco Mobile Home Finance Division has a default rate of 20-30% on mobile home loans. The national average is 2% and this figure may raise as high as 8% in terrible economies. This abnormally high default rate is terrifying to potential buyers for they realize that it is not the market that is driving such high default rates, but poor management, shoddy business practices, rude and incompetent employees who don't have the basic understanding of financial principles and accounting procedures, and a very poor reputation.

So the bottom line is that today Conseco Mobile Manufactured Homes division may be sold off and stripped of its assets by a corporate raider who specializes in buy cheap and farm out duties therefore gaining great profits. The bids are made today, the judge makes the final approval on March 5th.

About Calvary for another post. This is a theory of mine. I suspect that Calvary Collections is an unchartered put together collection/cash management firm that is operating with Conseco on an undisclosed contract. I think it may not even be a real firm.

It may be management and aggressive collectors forming this shady company to shake down customers to keep them financially afloat.
I would venture to say that all monies from this "collection" agency are not being applied to accounts but are all going into operating expenses to maximize cash flow. They probably figure that Conseco Manufactured Homes Division won't exist anyways and that they are not really hurting anyone. My private opinion and theory. i would simply refuse to deal with them and not do business with them.

this is cut and pasted from the www.hud.gov page----------

Your Rights and the Responsibilities of the Mortgage Servicer

When you apply for a home mortgage, you may think that the lender, or loan originator, will service the loan until it is paid off or your house is sold. However, in today's market mortgage servicing rights often are bought and sold. The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute. Sections 6 and 10 of RESPA provide you with certain rights regarding the servicing of your mortgage and escrow account. Please read this important information concerning your rights and the responsibility of your loan servicer.
Duty of Loan Servicer to Respond to Complaints.

If you have questions or problems with the servicing of your loan, the servicer is required to respond to you. Write to your servicer and call it a "qualified written request under Section 6 of RESPA." It should be a separate letter and not mailed with your payment. The mortgage servicer must respond to you within 60 business days of receipt. (See Sample Written Complaint to Lender.)

Loan Transferred to New Servicer. Your loan servicer is required to notify you in writing at least 15 days before the servicing of your loan is transferred to a new servicer. The notice must include the following information:

The effective date of the transfer, the date your current servicer will stop accepting payments and the date the new servicer will begin accepting them.

The name, address, and toll-free or collect call telephone number for the new servicer.

Information that tells whether you can continue any optional insurance, such as mortgage life or disability insurance, and what action, if any, you must take to maintain coverage.

A statement that the transfer of servicing does not affect any term or condition of your mortgage documents other than the terms directly related to the servicing of the loan.
Treatment of Payments During Transfer Period. During the 60-day period beginning on the effective date of the transfer, the payment may not be treated as late if you mistakenly send it to the old mortgage servicer instead of the new one.

Escrow Account. RESPA does not require that you maintain an escrow account for the purpose of paying property taxes, hazard insurance, etc. Nor does RESPA have any jurisdiction over the decision of the lender or servicer to require or terminate an escrow account. RESPA does, however, provide you with the following protections with regard to the escrow account:

If your lender or mortgage servicer requires you to maintain an escrow account for the purpose of paying property taxes, hazard insurance, etc., RESPA requires that the servicer pay such items by the dates due to avoid a penalty or late charge.

RESPA sets limits on the maximum amount of money the servicer may require you to maintain and pay in the escrow account. (More information about escrow accounts, including how to calculate the maximum amount RESPA allows the lender to require in the escrow account.)

PMI (Private Mortgage Insurance). RESPA has no jurisdiction over the lender's decision to require PMI. Nor does it have any jurisdiction over the lender's decision to cancel PMI. (The PMI Act provides information regarding cancellation of PMI.)

content updated June 21, 2002 Back to top

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