Its all starts a long, long, time ago... in the year 2002.
In 2002 I was the victim of an auto subleasing/sale scam where I lost two vehicles to the unscrupulous company of US Auto Management.in 2005 they were indicted, charged with consumer fraud, and a judgement of consumer fraud was rendered in and ordered to pay back millions of dollars to those consumers that were taken in this deal.
Judgements in my favor:
Case # CV-070092 - Me -vs - US Auto, et al.
Case # CV-009848 - State of AZ -vs - US Auto, et al.
Fast forward to 2005 where I am arguing with the banks - Mitshubishi Consumer Credit and Bank of the West advising them of the scam, they continue to pursue me and destroy my credit in the process (albeit the fact that the Arizona Attorney General was stepping in the middle of it...) they still continue to harrass me.
Then in early 2006 I was contacted by NorthEast Mortgage who set me up with Countrywide, as I wanted to try and take some equity on my house and start a business, and pay down some credit card debt.
It all sounded good, I was offered the following loan:
Interest Only, HELOC Pay Option ARM Loan.
Rate of 6.5% Interest, that would go no higher than
7.5% in the first 5 years.
No PMI
No-PrePayment Penalty
So I proceeded, I paid for the appraisal on my home, it came back with a value of $345,000, which was great.
My loan was previously for the amount of $218,000, there was a pre-payment penalty on that loan which I did know about, and accepted.
The new loan was supposed to be for: $224,000 (which included the pre-payment penalty), $50,000 cash out for starting the new business and $16k to paydown credit cards, this was all good and fine, for a total loan amount of $261,000.
What did I actually get after I was 60% and 3 months into the process:
Forced to pay off the FRAUD ON MY CREDIT REPORT - ~$18,000
Forced to pay off the one Auto Loan on my Credit Report ~$24,000
Payoff the Credit Cards ~ $16,000
Forced to pay Exorbant Lender and Title Fees ~ $10,000
Total new loan was supposed to be around $289,000, which I was unhappy with, but it saw it as a means to an end, and that starting my business would have to wait... So I signed the papers, and figured that I would just hold on to the loan for a short time.
During my signing of the papers, I noticed some strange things on the paperwork that did not seem quite right, so I questioned the title company, and made a phone call to the broker. And they told me that I had nothing to worry about and was assured that if anything was incorrect because I signed the power of attorney that they would correct the errors. So because I put trust in the broker and the lender, I went ahead signed the paper work.
Fast forward 3 months later, I have made my first payment already, and got the statement for the following month.
My interest rates now starts rising sharply to over 8%!!! I was astounded by this, and called the lender (Country Wide), and asked them why... Their answer. "Check your docs. You signed it!!!" I hung up the phone and began to search for an alternate lender.
So it took me several months to locate one (Desert Hills) that I liked, and during the payoff statement process, it comes out that there is a pre-payment penalty to the tune of $12,000 and change...
So both my and my new to be lender start making calls, writing letters, and email's to Countrywide to find out the story behind it... After some proding, and them taking more than 1 month to reply to me, I get their answer and in so many words "You signed it..."
So here I am today, with a new better loan, but still out $29,000 and change in extra fees/requirements that I was forced to pay with mortgage proceeds.
I hope that their attorneys read this, and make a effort to resolve this... But I doubt it...
Scott
Surprise, Arizona
U.S.A.
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