EMC MORTGAGE COMPANY CAUSES SENIOR CITIZEN TO LOSE HOME Irving Texas

I did not initally choose to do business with EMC Mortgage. My refinance loan was originally with another lender who sold the mortgage to EMC.

I am a senior citizen. In 2002 I refinanced my house in my name alone after a divorce. The appraisal for the loan shows the size of the property to be 1/4 acre. I also owned the adjoining lot which is an additional 1/4 acre. I decided to sell the lot and put the money into my existing mortgage with EMC, so that I could qualify for a reverse mortgage. I had a buyer for the lot and the escrow was supposed to close on March 5th.

However, somehow the extra lot was encumbered. EMC told me that although the lot was not on the appraisal, "it is on the mortgage" and therefore, some of the money from the sale of the lot had go back into the mortgage.

EMC delayed and delayed, losing papers, demanding all sorts of records, ignoring phone calls and demands from the escrow company, etc. I was in danger of losing my buyer and also in danger of losing the option of a reverse mortgage because of rising interest rates. The deadline for the release given by the escrow company was 21 days, which ended on April 5th. The escrow did not close until April 28th.

I begged EMC on numerous occasions to expedite the release so that I could qualify for the reverse mortgage.

Because of their delays I was in a horrendous financial position, having expected to receive the funds for the sale on 4/5. I had prescriptions which I could not afford to fill, over-due notices on my utilities and a $98.00 delinquency fee on my property taxes. All of this was a result of EMC's delays. Their delays cost me approximately $200.00 in late fees.

In the beginning of this process, they did not tell me that they could not process the release until I sent them $100.00. I only found out when I called them to ask the status three weeks after a buyer made an offer on the lot. At that time (March 31st) I sent the $100.00 by overnight mail in order to expedite the process. When I called a week later to check the status, I was asked who was going to pay the $100.00. I informed the man that I had sent it to his attention a week earlier.

They would tell me that the process would be completed in "7-10 working days". Every time I phoned at the end of the 10 days I would be told it would take another 7-10 days. This happened three times.

On several occasions they had me in tears with their condescending attitude and refusal to help. I had the distinct impression that they were deliberately delaying.

The escrow company handling this process repeatedly requested from EMC that they release the encumbrance. They placed daily telephone calls, mostly to an answering machine.

EMC mortgage charged me a total of $500.00 for the release of the lot. In addition they kept $7,800.00 out of the escrow account to put back into the mortgage and also collected two monthly payments.

During the period between 4/5, when escrow should have closed, and 4/28, when it actually did close, interest rates rose to the point that I can no longer qualify for a reverse mortgage. Bottom line - because of their delays, I am forced to sell my house and look for a cheaper place to live. I contacted the Senior Legal Hotline and was told that I have no recourse, but I don't believe that.

Mary
Portola, California
U.S.A.