My husband and I were both unemployed at the same time and fell behind on our mortgage. HUD took over the account and advised us on how to proceed. (We had had the house built when our daughter was born and wanted to keep it.) They subsequently passed the loan to EMC Mortgage Corp. At that time, our arrearage was approximately $5,000.
Over 5 years and $60,000 later, we were STILL paying off this $5,000 arrearage and our principal had not been reduced ONE CENT! Our monthly payment had gone from approximately $750 to around $1,150. When it was $750, that amount had included our insurance; the $1,150 payment did not include insurance (we paid that ourselves in a separate payment). Therefore, our ACTUAL increase was over $500/month, or almost double our original payment.
Attempts to get EMC Mortgage to explain where the money was going were unsuccessful. Finally, I wrote a letter regarding the fact that the principal was still the same, TO THE PENNY, as it was when they took over the loan. THE VERY NEXT MONTH, the principal amount began to go down. While that was the desired result, I found it strange that it happened immediately upon receipt of the letter, when it had remained the same for over 5 years. Of course, no viable explanation for this was ever forthcoming.
I have just contacted a law firm and am waiting to see what their response will be.
We are still living in our home and still paying EMC Mortgage, but feel sure we have been defrauded out of thousands of dollars.
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