From October my payment for both of the 1st. And 2nd mortgages became slow and delinquent, simply because lack of cash. When I became unemployed in 2000 summer to autumn over 6months, the loan officer of Household Finance Corp. (later on referred as HFC) helped me by renewing the loan contract which I found later, was a trap, including early payment penalty (in other words does not allow refinancing) for 3years and the calculation was set up so called Negative loan. However, I admit that I really appreciate her help at that moment anyhow.
So, before October I already knew that the day would come soon when I would not be able to keep on paying nearly $2000 a month from my humble 3600/month handy income.
Anyway, as generally happens, I received several warning letters generated by computer of HFC and finally from their Foreclosure Dept in January. This letter had a name of the issuer and signature (though lacking the date). Against this human writing, I responded to the writer named Mr. Zyad Qumsieh and told that I was ready to surrender, ready to go for foreclosure.
He proposed me not to go to foreclosure but to agree on the process of Short Sale (Later I learned from my real estate broker that the amount of money which creditor could receive would be quite small at foreclosure while short sale cover quite near figure of the outstanding debt.)
I was not familiar with this terminology of short sale which he explained that two loans would be paid off by selling the property which was under lien of those loans. The conditions are, it should be done in a month, the property should be sold at the average market price or higher and the trigger of that program was my payment of one month portion of the unpaid balance while those two accounts would be handled frozen.
I paid one month portion on January 25th. at the South Gate Branch of HFC in face, and retained receipt.@
The property was sold at $181,000 which is fairly higher price than average $167,000 around my neighborhood and just around the amount of two loans (excluding early time payment penalty). The money was paid to HFC in the early March (must be before March 6) in accordance with the settlement agreement written by Mr. Zyad Qumsieh of HFC and signed, agreed by me via escrow office. The agreement dated February 28 (later on the agreement is referred as 02/28/02agreement) is stipulating account numbers of those two loans and the amount of settlement with the detailed attached sheet and written with the wording of "Payoff should be sent via overnight delivery to: "
In the early part of April, I was put in a situation needing $6000 for medical expense immediately but my financial situation was not good even after relief from that $month mortgage payment. When I contacted at Union Bank (my major and only one bank), I was told that the credit report showed I had a serious delinquency. My application for loan was of course declined. I could not understand the situation clearly.
Before I receive a report from Experian, I received statements for two loan accounts from HFC. One loan 1st. Mortgage was showing $0.48 balance (I don't understand why not zero, anyhow I have not received any more statement of this account later.). Another loan 2nd. Mortgage was showing the balance of $13,102.78.
According to the agreement they received my PAYOFF money, however, have not completed their obligation, to pay off my debt, to make those two loan accounts balance to zero.
Another failure of HFC is that they did not make the accounts frozen during that short sale transaction. The report of Experian shows my account situation dated on March 2nd, which is apparently just before completing the transaction based on the agreement.
HFC bleached this condition of short sale.
I called HFC and their automatic inquiry system told me that the balance of that account was $625, not zero but different from the figure of the statement and so, I called Mr. Zyad Qumsieh. He explained that the computer process was somewhat complicated and taking time to wipe out the figures and asked me to be patient till the end April. He also stated that I should not pay $0.48 balance of the first mortgage.
However, because of my need for urgent money, I called again and found that he found some problem and could not correct it because the file he had was missing. This time when I checked at the automatic inquiry system, it came back with the figure of $13,000 balance. (their computer was running wild). So, I asked him to supply me a written explanation of the situation of this account, namely in process and would become balance zero but never meant delinquency for which I sent a draft via fax on April 27th. 2002. He seems having talked with his supervisor so many times but was not able to receive the help from his boss.
When I called again, he was not available but the other person explained me that the case was already out of hands of Zyad, and that 's why he could not do anything. That guy also asked me if I signed any paper that I would take responsibility of any balance after short sale, and I said no. He then tried to transfer me to some proper person but the line was cut then. It seems that they arrange various type of agreement with various types of tricks.
For the meantime, I seriously worked on money making, including pawn shop and borrowing from my boss in the company to fulfill the need of medical expense.
On May 23rd., I sent 2nd time request for investigation to Experian on this account while supplying them with the copy of the 02/28/02 agreement (First time investigation was reported on May 21 and showed not successful.)
This 2nd. Time investigation worked and my credit report turned to show "PAID" situation, however, Experian could not change the balance figure to zero which HFC insisted.
After the change of Experian report, there came numerous calls from HFC collection department. Each time by different person from early morning till evening time as if to torture me till I give up and promise the payment of the balance.
From their talk, I learned that the boss of the collection dept. Is picking up any crew and instructing to call me without giving any sufficient background of the figure shown in their computer and noted that nobody there knew the existence of 02/28/02agreement.
Among them only Ms. Paula Rewinski was bright enough to note that talk was lacking common ground and requested me to fax her the copy of paper work on which I was grounded. So, I faxed 02/28/02agreement to her. Even after sending that fax, there came two more calls and they did not know the 02/28/02agreement faxed to Paula.
Funny to say, Paula tried to overturn my opinion but failed (it sounded like that somebody, say her boss, exhibited his own irrational interpretation for which she tried to follow) then instead of persuading me, she promissed to get back after talking with the people in foreclosure dept, however she failed to materialize her promise.
So, on July 15th., I mailed copy of 02/28/02agreement together with copy of my fax of April 27th., to Zyad, to distribute the copy of it to those related section who took care of the process after him and requested to do the due corrective action immediately and to write to me before July 24th. If anything wrong in my writing. This letter was sent via certified mail and reconfirmed by the letter of August 1st., that there was not any communication to correct that letter of July 15th.in other words, what I wrote to them is now legal evidence of truth avoiding altering understanding of what was told (false statement).
In the end July I received July statement from HFC on that problem account which still is showing $13,126.23 balance as of closing date 07/10/02.
To monitor what they were doing, I tried to use automatic inquiry system, but when I punched in that 14digits account number, it automatically reached to customer service, not to the system after many trials involving their operator. (Later I found that they put a special arrangement to this account number and made only one responsible person can handle it.) My phone was transfered to Loan Dept. Finally, and Ms.De Hawringtion over there told me that the balance was showing $1,033.00, but I was not supposed to pay for it and Ms Sandy Son, supervisor of Foreclosure Dept. Was assigned to be responsible to take care of that account.
I called Ms Sandy Son at 800-333-5848 extension 6989 two times and received her return call, and she confirmed that she had taken action in accordance with my letter of July 15th to Zyad, I am not responsible for that balance, the account would be no balance by the end of August (cannot make it right now) which would make my credit status better, even make it possible to get a loan to buy a house. I told her that I got her words then hang up. However, after that I found that she does not know what she was talking.in August, I was trying to get a loan to repay my boss, and applied at Citi Finance.
When they had difficulty in finding right person for verifying my credit status regarding HFC account, I referred Ms. Sandy Son. Teleconference was generated between Sandy, Citi and myself, and then she exhibited different herself.
As if she forgot what words she gave to me, she stated that the balance of $13,000 survives and the account is considered not paid off while my responsibility on it is gone as an agreed settlement and this naturally forced Citi to chicken out from the deal with me who is still in trouble.
What she insists is inconsistent if you compare her statement with the /28/02agreement. Her attitude is just like denying what she let her crew written as agreement, which means she tried to cheat me, or intentionally ignoring it. Fact is that she did not help her crew to complete the process of short sale deal arrangement, or intentionally left the account balance open to collect more money than agreed pay off amount while transferring the next process to collection department without furnishing details.
In other words, she was delinquent in her duty of supporting her crew or she was trying to cheat me. If the case is latter, it should be defined as an activity following to company policy. Judging from the feeling of tone of Ms.De Hawringtion of loan department,
the company seems defined it is her fault and forced her to take care of this account and
nobody there seems interested in touching. I am not sure how the company
defined her fault, in term of lack of support to her crew or in term of failure in collecting more money after cheating me. One apparent fact now remaining is that she is not
handling the problem account in fair manner but is discriminating it based on irrational and inconsistent reasoning.
I presented this story to this site because I believe that there are many people with the similar experience and believe that exchanging information will finally generate the power to organize class action law suit. I am ready.
Now, I am beaten by HFC so badly but I state that I die hard. At the conclusion of this writing I would state that, any counter opinion from anybody of HFC will be welcomed through this site.
Yasuhiro
Rialto, California
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