When, I say, When will the Government step in and do something about this company???
I am a Nevada Homeowner and a civil servant whose family is looking at job loss and the inability to make my mortgage payments. Senator, I have also written Congressman Porter who has not responded to my issue and so I am writing you now.
My situation is like many others in Southern Nevada, my colleagues, my friends, and those on the news. My wife will soon lose her job due to the poor economy, most likely after the holiday season. Our little condo has lost over 100K in value since we bought it in we cannot refinance because although we have kept current on our payments we now owe more than our home is worth because our home has lost value on the open market, and to complicate things further our HOA management company is currently under investigation by the FBI for defrauding the homeowners.
For the past month and a half I have been attempting to negotiate a rate fix with my mortgage holder, American Home Mortgage, so that I can continue to pay my mortgage. I have sent them the necessary paperwork, and have tried to contact them numerous times. I have a telephone log of my attempts several sheets long, and yet I continue to get the complete runaround from them. They are unavailable to speak with me, do not return my calls, and do not participate in the new FHA programs that help underwrite bad ARM monthly adjustable mortgages like mine. I have met with HUD counselors and they have also expressed to me that this company like others, it very difficult to work with.
The sad fact is that for $1,000 I can get an attorney declare bankruptcy and possibly save my home. The other option, American Home Mortgage will charge me $500 to fix my rate to a higher than average fixed rate on their terms, if I am lucky enough and have the privilege of speaking with them about it.
Perhaps you are wondering how I got myself in this situation. When I signed the papers, rushed through by the escrow company and my realtor 3 years ago on my lunch break, I was told I could afford the loan, and that I could always refinance down the road. What I wasn't told was that there was a special rider on my loan that charged me at least 10K of the borrowed amount to American Home Mortgage should I refinance out of the loan. I was lied to. To make matters worse when I called the company to ask them to explain my loan to them, I was advised by them to continue to make the minimum possible payments that didn't even cover the interest of the loan and that everything would be alright. Fortunately, I was not this financially gullible and have continued to pay the full mortgage payments despite the fact that it has nearly killed us for the past 3 years.
What would you do if you were in my shoes? Would you be the responsible citizen and try to keep after a company that doesn't participate in the Government programs designed to help homeowners, is already bankrupt, and is unwilling to even attempt to negotiate a bad mortgage? Or would you take the easy way out and just walk away from the situation after trashing the inside of your home?
This is the problem with our current economy. Homeowners are now cash poor, many others like me, because they continue to try to save their homes, and pay ridiculous interest rates that are not negotiable. Then there are those who just walk away causing complete loss for the noteholders of these bad loans, which causes bankruptcy of insurance firms and our financial institutions.
The bottom line is this all occurs because the Mortgage Companies, like American Home Mortgage refuse to work with homeowners, to participate in recent government programs that can help homeowners. These companies are not required by Federal law to participate in these programs If the government can come down and pass laws that mandate cooperation and participation, and require the mortgage companies legally to work things out with the homeowners, then I believe that our economy would start to improve. However, Washington needs to act. Legislation needs to pass soon that includes incentives and punishments for such companies like American Home Mortgage. With Federal mandates in place these companies will be legally required to work out individual's situations and help to make homeownership a possibility and not a nightmare.
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