We were looking for an interest only loan. Home Loan Center said they had a program for us where we would pay roughly $139 for the first 6 months, and then a higher interest for the balance of the loan with a baloon payment at the end. They NEVER put it in writing and when the loan documents came, we saw there was a $590 / month payment.
When we asked them about this, they said that was just a figure used for debt ratio reasons and that our loan would be with the interest only. Well, when the loan was sold, guess what - our monthly payment was $590 a month!!! We were very angry about this. We contacted both the Home Loan Center and the Homecommings Financial about this. Homecommings said that they only service the loan and that we will need to address it with Home Loan Center.
Home Loan Center agreed that they had errored on the loan and that we would need to refinance. We told them that we did not want to pay any fees since it was their error. They said they would try. Well, anyhow, they said that we could either go with a higher interest and no fees, or pay minimal fees with the current program. They also told us that to be aproved for the loan, we needed to borrow up to a certain percentage of our equity and we needed to increase the loan to $75,000.
They told us that our payments would be $187.50 for the first 3 months and then $312.50 for the remainder of the loan with a balloon payment at the end. Guess what, we got a letter today from Home Loan Center saying that our new monthly payment on their "REPAIRED" loan is now $750 per month. What in the hell is this?
How do we fix this? The loan has not been sold yet. Is there anything we can do? We CANNOT afford this payment - we don't want to lose our house because of this.
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