Re-financing our home with Conseco was the biggest mistake we've ever made. We had co-signed loans for a child (first mistake) who fell more than a few months behind on the payments. I was beside myself knowing that we would have to catch up those payments as well as continue making mortgage, auto, and personal loan payments. We were falling farther and farther behind and everything was being reported to the credit agencies. We tried to re-finance our home with a reputable bank, but we were self-employed and now we had marks on our credit reports. Conseco to the rescue! They called us... We did not initiate the call.
We were obviously not thinking straight, because we agreed to a 13.25% interest rate. I was told that we would be able to re-finance later at a lower one. What they didn't tell us is that we wouldn't have any equity later, so the chance of that happening would really be slim. We were then informed, immediately prior to closing, that the real estate taxes would not be escrowed... Which immediately put us behind $1800. Now, we're stuck with a huge payment and not much of it going to the principal.
Then, we tried to sell the house (figuring it was the only way out). We couldn't because the mortgage was more than the house was actually worth. Now, how did that happen? Well, it seems that, not only were we stupid to get the loan in the first place, we didn't read the contract entirely. Conseco has the right to tack on a penalty if we sell or re-mortgage within a certain time period.
I'm surprised they're in bankruptcy. They are brilliant at getting the rest of us screwed.
Bonnie
Westfield, Massachusetts
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