We refinanced the house over 2 years ago to buy a business that looked good on paper but turned out to be a financial nightmare. Though that is not the fault of First Franklin the following is.
I was constantly 30-90 days behind on the mortgage for the past 2 years but after the business failed I got a decent job and got the payments current for the past 5 months and now the interest rate jumped 3 points. The mortgage now costs more than I make on one of my bi-weekly paychecks.in addition to the increased mortgage we have 5 children and all the bills that accompany them. But to add to the bills are all the carried over debt from the failed business.
Here is my point-First Franklin constantly calls me in the first week of the month, sometimes on the 2nd day of the month, stating that the payment is due on the first when in reality I have until the 15th before it is late. They want to know when I will pay and why I am late. I always explain the reasoning that I need both monthly paychecks to make the mortgage now. I was referred to Herb in the modification department when the collections department said I qualify for a modification. A modification will reduce the interest rate back to original for 2 years.
After filling out a form with the total monthly fixed bills, my income and my wife's Herb called me to tell me that I have more money going out than coming in therefore First Franklin will not modify my loan back to the original interest rate which was $350/month lower.
He in effect hinted that I cannot afford to keep the house when as anybody knows that a lower payment will free up money to pay off other bills thus reducing the monthly output while keeping the house out of a potential foreclosure—good for my family as well as the bank. Herb kept telling me that it would not be possible for the bank to lower the interest to help me out.
Not understanding the rational behind this I asked him to explain why it would not help me and he proceeded to remind me that I don't make enough money to make it feasible.
I was then told that the wife is not on the loan and I should remove all bills that she pays and only list the ones I pay and call him back the next day. I called him back and got a message that he would be out of the office the whole day, thanks for telling me to call back the next day when he knew he would not be there. I have since left 3 messages and still have not talked to Herb personally.
It is starting to look to me like First Franklin doesn't want to lose the extra $350 interest and additional late fees every month but is willing to take the risk that I may fall far behind on my payments. Looks like in todays market of record foreclosures First Franklin wants to join the other lenders and add another house to their portfolio while putting a family of 7 on the street.
Before the rep from First Franklin writes to this, let me remind him that I accept the state my refinance put me in, understand that there is no legal requirement for the bank to help me and will continue paying as long as I can.
But on the flip side there should be a moral and good business responsibility on the part of the bank to help their customers in a time of need. Let me also mention that because of the market and needed repairs of the house it is now worth less than the amount owed, therefore First Franklin would lose money in a foreclosure.
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