My brother made the mistake of accepting an offer by bank one to refinance his home mortgage. His credit was less than perfect so his current interest rate was somewhere in the 10% fixed range. Bank one offered to refinance his home at 8% and my brother took the bait hook, line and sinker. Well, it was lucky for him that a friend had a bad experience with bank one and he told my brother about it. It seems that bank one has the highest foreclosure rate of any bank in the country and this is how they do it. They refinance loans and bury the a.P.R.info somehow. The interest rate that you pay each month is only a percentage of the rate that is actually being charged to your account. Their lawyer told them that what they do is technically legal, but very deceptive. I don't understand all the details, all i know is this, the actual interest rate that my brother was required to pay was 14%, but this was not reflected in his payment.in effect, bank one will let you fall behind in your payment every month, and you won't even know it. This is how they reduce your payment per month. You see? Then all these poor mislead people make their payments on time only to find out at the end of the term of the loan that they have been making short payments. Then bank one will demand the balance or foreclose and take the property. What an innovative way to increase your profits eh? Take the money for 30 years, let them make short payments, then take their house away and sell it! This is also your government letting the bank get away with it too. Luckily for my brother he found out about these bastards after 18 months or so. He's only $8,000.00 behind! He has been trying to get bank one to cooperate so he can once again refinance and they have been dragging their feet all along in a last ditch attempt to thwart his plans to terminate his loan with them. He finally got his payoff info friday along with a demand for the $8,000.00. He has 12 days before bank one starts the foreclosure process. Fortunately he has access to the money and a decent lender to work with now. Imagine the people who discover bank one's little trick 10 years into a loan! So, beware of bank one, if you or anyone you know does business with bank one, take a real careful look at your a.P.R. And spend the money on legal advice. It could have saved my brother a lot of headaches. Thanks for reading this and spread the word.
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