Homeloancenter.com is using mail fraud to scam people into bad loan situations. I responded to a letter sent be HomeLoanCenter.com.
A Fast talking sales person took $600 from my credit card without providing all the details of what there 1% borrowed rate would do. Nor did he tell me how this is called a negative amortization up to the amount of 115% of my prinicpal balance bases on a monthly interest adjustment.
The sales person told me that my payment would remain level for 5 years. I did not know about or how the interest would be calculated and he never told me.
What I was told in the beginning did not represent the whole story of the actual loan agreement.
I did not know that HomeLoanCenter.com adjusts the interest rate of the loan payment each month. If there is more interest, they keep the payment the same and add the interest into the principle of the loan amount. Up to 115% of the loan amount. This is CALLED NEGATIVE AMORTIZATION.
This explanation and terms were never used and I was not made to realize what NEGATIVE AMORTIZATION MENT. I WOULD HAVE NEVER ALLOW $600.00 TO BE TAKEN FROM MY ACCOUNT HAD I HAD A FULL UNDERSTANDING OF WHAT THE LOAN PACKAGE WOULD BE.
HomeLoanCenter.com adds more information as to their scam tactics each time you talk to them. They said that I would get my $600.00 back in a check form, and then during another conversation they said that they would credit back my credit card at closing.
The loan officer said that the $600.00 was built into the loan and I may have to come up with money up front. They just scam people.
I was told that I had a prepayment penalty if I refinanced for three years, BUT I COULD SELL THE HOME THE NEXT DAY WITHOUT ANY PENALTY. I have the fast talking sales man on Voice Mail promising that.
I received two sets of offers (Loan Documents) and both have the exact same wording. They changed the escrow demands. However, the prepayment penalty is exactly the same. I found out from a local legitimate lender that the below statement is called a "Hard Prepayment Penalty", yet they told me and I have it on Voice Mail that I would have what amounts to be a soft prepayment penalty.
The prepayment penalty reads as such: "If within the first thirty-six months after the execution of this Note, I make prepayment (s) the total of which exceeds twenty 20% of the original Principal amount of the Note, I agree to pay a Prepayment Penalty in an amount equal to the payment of six (6) month's advance interest on the amount by which to total of my prepayment (s) during the twelve (12) month period immediately preceding the date of the prepayment exceeds twenty (20) percent of the original Principal amount of this Note.interest will be calculated using the rate in effect at the time of prepayment. I will pay this Prepayment Penalty regardless of whether I SELL the property or refinance the loan with the same Lender or Note Holder.
After I locked in the rate with less understanding than I should have had due to slick sales tactics of offering just enough bait, I got a voice mail as to just how much interest can be added to my principal in a month. Oh my God! $250.00.
Needless to say, I did not have full understanding of just what was being offered or I would not have locked in that 1% rate for $600.00 on my credit card. I was subject to a bait and switch tactic.
I just want my money back.
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