I got a real check in the mail for $5,001.10. All I had to do was deposit it and it would result in a loan, making it so you could get your money fast. On the back side of the letter it did say the rate would be 28.900% with payments for 60 months at $158.44.
Instead of cashing the check, I called the number on the back which put me in contact with the local office. After asking if they had anything with a lower interest rate, the gentleman, whom I was speaking to, said I was preapproved for up to $30,00.00 at the 28.900%. But, if I wanted to consider refinancing my 1ST MORTGAGE, he had a deal for me. I could pay off all my other bills and even get almost $20,00.00 extra cash for an interest rate of 8.25%. I told him my current mortgage was only at 8.00%, so why would I want to do that? He said if I made 12 consecutive on time payments, my mortgage rate would decrease by. 25%. And it would continue to decrease after each continious 12 month period of on time payments. Of course this sounded great. I was getting all my other bills paid, extra cash to do as I wanted and my LOAN RATE WOULD BE DECREASING EACH YEAR.
So, of course, I gave him all my information in order to start the loan procedure. I did have 1 problem that he needed to consider. I had a silent second mortgage for $25,000.00 owed to the city. (A silent mortgage is one where no payments are made, no interest accrues, it just sits there until the house is sold) He said he had dealt with these mortgages before and there would be no problem with it. Then I was handed off to a different person who would apparently do the paperwork. I told this girl that I would like $10,000.00 as soon as possible, because my husband was looking at a very good deal on a car, but that deal ended that same week. I asked her the time line we were looking at. She said all could be accomplished within a week and if not, I could still get the $10,000.00 advanced to me.
Next thing I knew, an appraisal was done, which came back with plenty of equity for the loan. I was advanced the $10,000.00 at a rate of 23.99% since the title work was not completed. I was told everything would be ready in a few days andd I would just have to pay the 23.99% for a short time.
Next thing I knew, my mortgage rate had changed from 8.25% fixed, with it lowered every 12 months with on time payments to a 9.37% 2 year arm. The girl helping me now, said the gentleman I had talked to earlier didn't know what he was talking about and had given me a wrong rate, in telling me 8.25%. There is quite a large difference in 8.25% and a 9.37% arm. Next I was told they did not do escrow, which I had been used to. I would now have to pay my own taxes and insurance (taxes which would be due in 3 months).
My husband took ill, which was probably good and bad. It gave me some time to think about what was going on here. I called a few other financial institutions about a loan and were given much better quotes and with my escrow that I was so used to having.
The topper was today. I called to speak to THE MANAGER, whom I found was the 1ST PERSON I had spoken to, that supposedly did not know what he was talking about. I told him that I was probably going to go with another institution and asked when any payment would be due on the $10,000.00 they had already given me. I asked him since he was the manager, why he had told me 8.25% and then it was changed to 9.37%. He said he had it wrong on his sheet he had looked at. Then, he told me the rate was now going to be 10%. I didn't go any farther with that!
Next this MANAGER SAID he had a meeting and hung up on me. But the final kicker is that in the mail TODAY THE SAME DAY I TALKED TO THIS MANAGER, we got a note saying we were unapproved for the loan, but that we were approved for a smaller amount (the $10,000.00 at 23.99%).
Don't deal with these people. They make things sound good and then trick you.
Robin
Green Bay, Wisconsin
U.S.A.
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