I applied for a consolidation type loan and was told I could only do it as an equity loan. Once the loan was complete, it was actually a second mortgage. There was much information that was left out and I thought I read everything. I guess I 'skimmed' through some information, but they got me somehow. I use to work in credit so I do actually know what I'm doing. I believe now that the rate is adjustable, which I would have never agreed to. I never have had one and never have wanted one.
I remember during the application process, I asked numerous times what the rate was, and was put off with different excuses. One was that they wouldn't know exactly until the end. Now I know why, it was adjustable. I now have a 14% rate.
I have tried to refi and no one will cover it because no one does more than 100% financing anymore, nor offers second mortgages for more than the equity in the home. Since property values have gone down with the loan opportunities, I have no way out.
For many months, the interest rate was not even on the bills, then in Oct I got 2 bills, the second showed the rate. I pay $359.21/mo and only $33 is going to the principal, and that's after approx 2 years. I felt I was stuck with it so I did nothing for this long.
Then, I lost my job 7 months ago. On their website, and on the monthly bills, they show help if you have had a financial hardship, so I checked into it. One of the things says loss of/reduction in income. I contacted them, they tried to refinance first. Even they wouldn't do it. They then transferred me to the 'hardship' department. I was told that I qualified and he was sending a recommendation. This was on 12/26/07 and he stated if I didn't hear anything by 1/3/07, to call back. I didn't hear anything so today I called back.
First, they had no record of my call, the hardship application or anything else. Then I was told if I had no income, or too little income, they couldn't help because I wouldn't qualify anyway. If this is a hardship for people who have lost income, how could you possibly have TOO LITTLE to qualify? I was told to go to my first mortgage company and fix that one. Well, that one has a 5% interest rate so it would only increase, how can that help me?
Not only all this, but the woman was rude and acted as if I was less than a person for not having an income. My loss of income was due to no fault of my own and does not make me any less than what I was before. I advised her I would be going to my first mortgage company because it is a government backed mortgage and I would be reporting them, not trying to refinance (the first mtg).
I still have a problem though, in that this rate is outrageous and I am left to pay it so it doesn't ruin my credit. The stupid thing is, they wouldn't even get the house or any money because I would just not pay the first one and they would take it, before I would let this company have it. I need help. Where can I get it?
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