Novastar Mortgage
Novastar Mortgage is a contract breaker refusing conversion from an ARM that was contractually agreed

We signed a mortgage in May with Novastar mortgage. It was an ARM with a converion option allowing use to lock in the mortgage and the current rate (7.99%) for $250.00. It also had a two year prepayment penalty. The first two years the rate was fixed at 7.99% and coud go up aterward to a max of 15.99% if the conversion option was not taken.

May my wife called to exercise the converion option at which time she was told by Novastar that she would have to call back in June because we were not in the conversion time period. She called again in June and was told she could convert but that the rate was going to be increased anyway and would continue until it hit the max of 15.99%. Her responce to them was so what was the converion for? A week later we received a notice that our rate was being raised from 7.99% to 10.99%.

Again she called and was told we didn't have a converion option. She called back to get a different agent who told her that they would review our file and get back to us.

In September we contacted Novastar consumer complaints department and still have gotten no where on our conversion option, but we were informed that the 2 year prepayment Novastar was trying to slip in an unsigned unagreed to addendum uping it to a 5 year. Every page of our contract was singed or intialed but this addendum they later sent us was neither signed or intialed. We asked for arbritration information after advise from a legal friend and Novastar refused even this request for information. They are going to try and raise our rate again in December to 11.99% and a point every six months ther after until they get 15.99%.

We have tried to handle this matter between us and Novastar, but they have so far been unwilling to honor the conversion or the two year prepayment penalty.

I hope to shed some light on this company, NOVASTAR, who doesn't honor it contractual obligations and will most likely end up in court if their "buisness ethics and practices" remain unchanged very much longer.

Company: Novastar Mortgage
Country: USA
State: Missouri
City: Kansas City
Address: 8140 Ward Parkway
Phone: 8884995363

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