Two years ago we got ourselves into about 30000.in credit card debt. Our son had been in the hospital for 5 months with no insurance and we were trying to help him out. We decided to try to consolidate our loans because at the time we didn't know that there were other ways. We talked to Household finance and thought we had an answer to our prayers. What we didn't know was our undoing.
The first thing they did was send out an appraiser who appraised our house for more than it was worth. They encouraged us to tell the appraiser that we needed the house to appraise for 189900. We did like dummies and he appraised it for that amount. Then they came to our house and told us we had to add all of our bills to the consolidation no matter how small.
Then they charged us 16900. For closing cost and more fees on top of that. We went from oweing 121000. On our house to owing 198900.00 and a second mortgage of 15000.00 The first mortgage was 11 almost 12 % and the second mortgage was 21%. We have payed 2250.45 a month for 2 years and our balance does not budge. We can't sell because we owe more than the house is worth. About 50000. More than the house is worth.
Also we have a 5 year prepayment penalty which adds another 11000. On our balance if we sell. We have begged them to come down on the interest so we can afford to make the payments but they won't. Our credit is ruined because of our high debt ratio.
We need help! I hope noone ever has to go through what we have had to go through. We have reported them to everybody we know to complain to but nothing has helped so far.
Greg and Rhonda
Maryville, Tennessee
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