When my subprime loan readjusted, I was paying 10.55% on a $520,000 first! More than the 9.25% second! And this wasn't even the worst adjustment where they would start "amortizing" the loan! This loan was considered "subprime" not because of my credit, which was excellent, but because of the high loan to value. And since home loan lending amounts do not keep pace with California real estate prices, it was considered "Jumbo". So when I called GMAC in Dec.'07 saying I was struggling with this out of market interest rate, they said they would send a loan modification packet out to me, but it would take a while, as they were backed up. 6 wks. Later, I received it and faxed it back. 4 wks. Later no response and said they didn't receive it. Immediately faxed it again. Still no acknowledgement, but a Rep.in the Default Division said they would accept a payment of $2,175.By that Friday - 3 days away - and immediately put me into Loan Modification. I was travelling and tho I was in Dallas, TX. Where their Corp. Headquarters is, I wasn't allowed to make the modified payment at their branch because I didn't have the statement with that dollar amount on it. Repeated calls got me a fellow from their "Loan Modification Dept." who - again - asked for the Financial Package - this time, we did it over the phone and was only then submitted into modification. At that time it's April '08, and I did not make my March payment thinking I would get some financial relief. It finally came after they tacked on the additional 3 mos. Of non-modified loan amount, or an additional $14,4XX in "Late fees", "Inspeciton Fees", and "Corporate Advances". Didn't really matter, as I wasn't going to pay the 10.55% interest rate - which, of course, I did by virtue of the 6 mos. Delay and additions to the principle balance - but hey, they're getting 2% money from the Federal Government and allowing me to keep paying them... Swell! If anybody thinks this wasn't a nightmare created by the Lending institution - think again! If there is a class action suit brought against these unscrupulous fellows, count me in. If there isn't, I'm willing to start one.
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