We were having financial difficulties when we were solicited by phone to refinance our house. The folks soliciting us said we could get some money to help us at the time because there was some equity in our home. They also said we could do the refinance with no docs, that is, with no income verification. This seemed like a great idea to us, we thought the money we would get would not only hold us over until we got new jobs and got our finances in order, and we would even have enough money to also pay our monthly mortgage on time in the interim.
All this would help us in through our financial difficulties and we would qualify for a new refinance with these folks after 18 months of steady payments. We thought it was going to help us. This is not really the case. We had no idea what we were getting ourselves into.
After getting excited about the much needed money that would be coming soon to help us and quite involved with fulfilling the requests that the soliciting folks were asking for, and not getting any information from them about the new loan specifics and how we would be affected by them. So there we were on the day the notary came to the house, signing this paperwork that we had been jumping through hoops to qualify for and seeing the real terms for the first time. Terms that we were not familiar with since all that we had been told or asked for was stuff to get money from the equity in our home and we figured everything would be okay.
Everything was not okay. It turns we ended up upside down in our new loan right from the start. Not only that, but there was also a balloon payment due at the end of this 40 year loan that could buy a whole other house. This was handled by the notary at the signing by pointing out that after a period of steady payments, we could easily refinance again, and the balloon payment would go away and maybe even a better interest rate etcgreat we had that guaranteed refinance offer from them in 18 months, money to pay the mortgage from the equity, we thought it would be okay. Not okay.
We were upside down in the loan from signing, something they failed to mention, an astronomical balloon payment hanging out there and on top of all that, a 3,200 new mortgage payment that we were not expecting. As our old payment was 1,300, this was a payment spike we quickly discovered would not be carried far by the money that we got from equity. So after the papers were signed we started being billed by some new folks - Ocwen our new loan servicing company and a debt collection agency at that.
This is before we ever made a mortgage payment, let alone got behind with late payments. So we made some payments and somehow even when we paid on time by phone even to make sure the payment would be on time (a service we also paid Ocwen for) the payments would not be on time. The checks by phone or eft bounce or the check number would be wrong etcfrustrating and after awhile a pattern we noticed. When we finally realized even our on time payments were not on time we were already in a big mess. And of course Ocwen would not admit or fix any of these mysteriously late payments.
Pile on bank fees and Ocwen's fees and we very quickly had real payments that were late because we were out of money, all the while getting negative credit reporting too for the real late payments and otherwise. We were facing foreclosure. So we called Ocwen and requested assistance and got it, in the form of a forbearance plan that would only go into effect with a down payment. Thank the LORD, we were able to scrape together the down payment which was a miracle. Because being so behind in our payments our new payment was 3,600. And we thought 3,200 was difficult to come up with!
We made a couple of payments and ended up in default again. Meanwhile, our account had not ever been escrowed to cover taxes and insurance even though we had sent in all the required information and the request. Because of being in default they didn't do it. So there we were facing foreclosure again, now all this insurance stuff is coming to the house like they are going to insure for themselves because it's going to be sold but they would not do it for us before but they charged us fees and sent tons of mail about it.
So the sale date is a few days away and we really don't want to lose our house but we have no money and we are so confused and frustrated dealing with this company we don't know what to do. We decide to give them a call, and they offer us a loan modification agreement but we need 3,545 down and to receive from them sign and fax back to them these agreement papers. We sell family heirlooms we would never had considered to part with because we are facing homelessness.
Thank the LORD, we were also able to get a loan for the remainder and pay the day of the sale. We call them and tell them the Moneygram payment has been sent, where is this agreement paperwork they insist had to be signed and sent back for the terms we agreed upon to be valid. It comes a few days later and we don't know if the house is still ours, the paperwork has different terms then what they told us on the phone like no mention of dropping the balloon payment off of the loan, a. 05% difference higher rate than what they said and oddly enough portions about binding and inuring to our heirs and forever signing away all of our rights no kidding - FOREVER! So here we are out heirlooms, 3,545 not knowing if the house even belongs to us anymore and being asked to sign this crazy agreement that not only doesn't say what they promised it asks us to give up all of our rights forever and those of our heirs!
Frederick
vacaville, California
U.S.A.
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