Predatory lender complaint against:
Delta Financial Corp. Amy La Londe President. DBA 1st Guaranty Mortgage.
5100 N Dixie Hwy Suite 200, Ft. Lauderdale, FL 33334
877-229-9707
In the past we refinanced with 1st Guaranty Mortgage to have our credit repaired. They told my wife and I that we would have to go with Yale Mortgage a sub prime lender. Not knowing what that meant at the time we proceeded.
At a 10.6% interest rate 1stGM promised that we would only have to be at that rate for 1 year so we agreed. We made all of our payments on time for 1 year. 1stGM called us to tell us that we could refinance and get a conventional loan at a way lower interest rate of 7.8%, we were very excited and agreed to do it. After filling out the paperwork to get the Re-Finance started we were told that it should not take more than 10 days to close with a lower rate and have some cash out! We were very excited to hear this. Then reality check!
This closing dragged on for a month back and forth with we need more info and other papers which they already had from previous re financing we were getting very aggravated and upset. They dragged this on for about 4 months with wait just a bit longer we are about to close. I told them I was going to find someone else if they did not get this done! Jim Lawing at 1st Guaranty told us not to pay our mortgage payment and we will be closing soon."
Not knowing any better we listened to him and got a couple of months behind! Not having extra cash reserves we could not get this amount up to date! We asked 1st Guaranty mortgage for some help and advice. They said that their in house loan company Delta Financial Corp. Would give us a catch up loan so we agreed to come in and sign the loan papers for $5500 dollars to catch up 3 months of late payments. (Our mortgage increased to 12.6% within this time.)
We called Yale Mortgage to see if any payments were given to them. They said no. Went back and forth from Yale to First Guaranteed a bunch of times! Finally Yale said they showed that half of 1 months payment had been made and that was it. Not seeing any of the proceeds from 1stGM nor proof that any full payments were made. We decided to call another mortgage broker. The Lending Tree whom we called as per a suggestion from a friend, checked our credit and said that we had a lien on our mortgage. The amount was $5500 dollars! I found out that 1stGM did this so that we could not go anywhere else and get a deal.
Well it worked, no one would help us. Four months into this deal I lost my job and we got further behind! (I would have had my own business opened and making money had we closed within the time promised.) We desperately needed to have some cash reserves and my truck also not operational at the time needed some work!
I am still to this day having to use my motorcycle to get around on. (Which my wife hates because she thinks they are so dangerous!) We contacted a law firm and got them to send a Satisfaction of mortgage paper to Delta Financial Corp. No reply at all from this company even with legal representation they ignored the situation completely.
It has come to the point now where we have no other options but to sell our home and move to a more affordable location. Being stuck with a sub prime lender and an adjustable rate our mortgage payment got way out of hand. Over $2250 per month! We owed approx $163,000 on the home at this time!
Our house now on the market for over 5 months, at this time home values plummeted, not able to sell it for the amount needed to pay off the mortgage because of outstanding payments and late fees. Our realtor has known our situation all along and has said there is no other alternative. FORCOLSURE is sure at hand. With in this time we got pre foreclosure papers from Yale Mortgage.
Our realtor researched a SHORT SALE and told us that the title company called Yale and 1st Guaranty to make deals with them. Yale sent a letter that said we owed $193,000 with all of the late payments and fees. 1st Guaranty said we owed them $12,600. (remember the original loan amount was $5500) we were shocked. A company that was appearing to be so helpful with their so called CATCH UP LOAN. What company that is offering a service to help people would do this to families! (did I mention that I have a wife and 2 children).
Feeling so distraught we all go to bed hungry, sad and praying that there is something that could be done about this. This company wrecked our home and our lives.By giving us bad advice and taking advantage of us. This did not help us in the long run as it was supposed to. IT DESTROYED US! I will never be the same again! Stuck with no money or place to go we were in big trouble.
We have since moved with the financial help of my loving mother and older sister to North Florida. Renting a mobile home and trying to recoup from all of this. We are basically starting over on something that we worked so hard to achieve. We had that house in South Florida for over 10 years. Our South Florida home is pending a Foreclosure at this time!
Amy La Londe President of Delta
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