I had two mortgage loans through Fifth Third on the same house. One was my primary which was down to $112,500 or so in 2002.in 2002 My wife and I (now divorced) took out a home equity line of $20,000.00. At the time they appraised the house for $130,000.00.
Because of the divorce and a reduction in my own income, I struggled to make the payments. The primary loan was $1080 a month.By the spring of the primary mortgage was in default. I was able to bring it current, but fell behind again almost immediately.in June I conceded that I would not be able to keep it and put the house up for sale. The primary mortgage went into foreclosure shortly afterwards.
I had a buyer by early Fall. The offer did not cover both loans. It would have paid off the primary, legal and real estate fees and commisions and about half of the $20,000 equity loan. Fifth Third's equity loan department refused to discuss this with me. Because I had continued making the equity payments, they said they had no reason to discuss a short sale with me. This was despite the fact that the same corporate bank was forclosing on the primary loan on the same house.
The lady I was working with in the Primary loan department attempted to force them to agree by going over their heads, but we were still told no.
I decided to quit making the home equity payments. I figured that they may be more willing to negotiate if that loan was also in default. And besides, if I was losing the house anyways why make payments that I would never benefit from.
In December of I had another purchase agreement / offer on the house. Once again the equity loan department refused to consider a short sale. I explained to them that once the redemption period was over that their lein falls off the home anyhow. I was willing to negotiate a payment plan on the balance of the loan, if they would accept the short sale. They could have received $10,000-12,000 of the $20,000 and I could have only owed them around $8,000. Either way, when the foreclosue was complete, or a sale was finalized, the loan would no longer be secured by the house. Much to my disappointment (and disbelief) they still refused to cooperate.
I had yet a third buyer lined up in the early Spring of 2005. But once again the equity department refused to work with me.
To summarize all this chaos; Although my two loans were held by the same bank, one department cost the other department thousand of dollars. It took a full year for foreclosure and eviction to occur. The primary loan department had to have taken a huge financial hit, that was not necessary. The primary loan was a FreddieMac loan, so they also lost money. Finally, the PMI company had to cover the difference on the primary loan, when there would not have been a difference had I been allowed to sell the home.
The house was listed in June by my agent at $139,900. The first purchase offer I recieved was for $130,000. The second offer was $125,000. The final offer was for also for around 125,000, but that person was willing to go as high as 132,000.in October FreddieMac sold the house at auction for $110,000.
Now the equity loan department has begun legal preceedings against my ex-wife for about $22,000 (Because she was a cosigner on that loan).
I feel I went above and beyond what most people would have in that situation. I tried for a year to sell the house, I made innumerable calls to dozens of different Fifth Third employees, as did my real estate agent. We were both treated poorly by the majority of people we talked to. One person, Homer Smith, actually threw out a purchase agreement that my real estate agent faxed him because it was not "addressed properly".
Not only has Fifth Third bank cheated themselves and me, I believe they have defrauded FreddieMac and the PMI company.
If anyone has any advice, or could point me in the right direction, I would greatly appreciate it. I want to assist my ex-wife in this matter. She should not have to pay this and I am not in the financial position to pay it myself.
Michael
Burtchville, Michigan
U.S.A.
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