Just like many of you out there, I got into a home loan because they made it easy to buy but not easy to own! Mortgage companies lure you in with attractive payments, fast buys, and promises of converting into fixed loans with lower rates. Sounds good until time moves on.
My loan was first purchased through Ameriquest in MN and was bought by Citi approximately 2-1/2 to 3 years ago. Ever since then, I have been trying to convert my home loan to a fixed rate or to lower my interest-only rate from the 10% a year ago and the 9.5% I am paying now. Apparently I do not qualify for an FHA or any other fixed rate, so I tried to lower the rate because I wanted to be responsible in carrying the debt I took on.
I am self-employed, single, and also pay child support. Business has been on the decline due to the economy (self-explanatory), and the cost of living has been on the rise. I was in a shortfall of money every month of approximately $500-$800 for the past couple of years.
I contacted Citi to see what I could do, and they told me the only thing I could do was go through with a loan modification at that time. It was a verbal questionnaire by the rep and then a letter they send out that I fill out and return. At that time they said I would maybe qualify for a reduction to 7.5% if everything looked good. I answered the questions and was told there was nothing they could do at that time. I was mad because that was the beginning of the housing fall.
In the year before all that, Ameriquest was sued in a class action suit in MN and many other states, and that's why you don't hear too much of them anymore. Ameriquest lost, and I got a compensation check because of that.
Almost a year has gone by and I am still in the same boat as a year ago, but I am still willing to keep my house and make payments (by the way, I was never late on one payment ever since I have owned it; I took the debt on somewhere else and worked a lot more) and be financially responsible, so I tried again.
Surprisingly, this time I was asked why I never filled out the paperwork for modifying the loan the last time I tried. I said, "WHAT?" I told them I was told I did not qualify and was NEVER sent the paperwork to fill out. Now I was really mad because I have been paying, for a year, 2.5% to 3% more than I should be.
So I said, "Why not modify it right now then?" She says, "We can't just do that; you have to now be asked questions again." Now that's the dumbest thing I have ever heard. So I asked her if there were any records in their system that indicated that they sent out the mailing to me, and there weren't!
So I guess what I am saying is I have been paying up the nose for a bad loan and was told I did not qualify for a modification, but the real truth is I did, and they have gotten my money for a year at the higher interest rate and are now again telling me there is nothing they can do for me.
In the wake of all this, I have asked myself a few questions:
Why?
We're bailing all these companies out with our tax money (I'm hit twice because I'm self-employed).
Where is the bailout money going?
What are the feds doing to the companies because they are not financially responsible?
What law did they break when they did what they did to me?
If there is a lawyer out there that hears more of this, I know they will be just another lender that will be sued again. The news is already pointing that out today.
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