We had a friend of many years who was, and still is an employee of fgm.in 2004 he suggested we take advantage of the low intrest rates to refinance. This is not something we were actively considering, until he made the suggestion. We felt it was indeed a good time to take advantage of low intrest rates. We didn't shop around because we trusted our long term friend would be more apt to put our best intrests first & foremost. We felt there was a level of trust there, that we wouldn't find dealing with another company. We were told he would get us the best interest rates. I would like to add that we have good credit, so we could've shopped around, but again chose to deal with someone we knew.
Fgm did get us an interest rate that we were happy with. But along the process you are many of the lengthy fees that add up, will not be included in your loan amount, that will be charged back to the lender. This is not true, in the end most of the charges are indeed added to your loan amount.in addition initial figures show one amount, and then the day of closing the figures change drastically. But i would like to emphasize that you don't see your final loan paperwork, with the latest figures, until the notary shows up at your home for the closing.
I would also like to point out that unlike a normal closing, there is no lawyer present or anyone else to look out for your best interests or explain what your signing.
When nego. Our loan we told our loan officer that we absolutely didn't want a loan with a prepayment pentaly. We were repeatedly assured that there would be no pre payment penalty in our loan agreement. Again we trusted our loan officer/friend to be honest with us.
On the day of closing we got our first look at the most recent figures, which of course varied a great deal from the good faith estimate. We were told not to worry we would get money back later, just get on with it and SIGN, SIGN, SIGN! Sign your life away is more like it. There is tremendous pressure not to question, and hold up the closing process. Because at all cost your fgm loan officer (if you can get them on the phone at your closing) will lie and say what it takes to close the deal. While we thought we were careful to read what we thought was important areas, we failed to realize one of the 100 pages we signed, was a page way down the pile. This turned out to be a rider that was added, a prepayment penalty of an outrageous 5 year/5%!!!
Again let me empahsize that there is no one to guide you through and explain the overwhelming 100 pages of docs. Your signing. And of course because we were told there would be no prepayment pentalty, your not going to be looking for it!!!
Our loan was farmed out to wilmington finance (as our almost all of fgm's loans) we made one pymt. And then were flipped over the wilmington's other division, Morequity. This is a routine fgm practice.
Recently we visited our fgm loan officer / friend.in conversation, he told us that fgm's major financer, wilmington finance, was being audited for imposing the 5year/5% prepayment penalty without consumers knowledge. Apparently lots of consumer complaints concerning this issue. (but not to worry has wilmington is trying to find new, more clever ways to lie to unsuspecting consumers and slip their prepayment rider!)
This was a very disturbing conversation to us, for obvious reasons. This prompted us to pull out our 100 page loan agrrement. And what should we find, but the 5year/5% prepayment penalty rider! Had this conversation not occurred, we probably would've continued to assume that there was no prepay penalty as we were told. Not 2 yeas later we find out we were lied to!
Admittedly we feel foolish for being so trusting of our loan officer/friend. But this is just "business as usual" for fgm.
This prompted us to call our current loan holder, MOREQUITY. They confirmed that we indeed have this penalty in our agreement. The morequity employee, told us we weren't the first to call and complain about being lied to about the preapay pentaly. She told us we should file a dispute with the original loan holder, wilimington finance. I was put through to the vice pres. Of operations. I explained the whole siutation, and was told he would look into it, and call us back that day. So, far no return call... I also mentioned that i was aware that his company was being audited, in reagards to this prepay penalty be added to loans, and lying to consumers and telling them the oppposite. He replied, he knew of no such audit! As VP of operations this is obviously another of many lies.
It is our intention to file whatever disputes/complaints we can, in hopes that perhaps the current loan holder may remove this preapy penalty, to silence us.
So my fellow consumers please file your disputes/complaints if you have found yourself a victim of fgm's "bait & switch" type lies/tactics, reagarding the preapyment pentalty!!
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