We financed our home through a local bank. We were supposed to have a fixed rate, 30 yr mortgage. The mortgage was to be kept 'in house' and NOT sold on the secondary market.
Within 4 months the bank sold our note to CONTI Mortgage, and our rate went from 7 1/4 % to 11 1/2 % overnight! They sent us a letter telling us to pay them and the NEW pmt amt.
We complained to the bank and they said a mistake had been made and to come in and re-do the paperwork and they would get it straightened out within 2 wks. That 2 wks turned into 3 months.
In the meantime, CONTI was sending us letters telling us we were late with our pmt and demanding pmts over the phone with check numbers.
Then the bank 'lost' our 2nd application and we had to complete a 3rd set of paperwork for them. CONTI was still calling all times of the day and night, both at home and at work demanding more money. We sent copies of the cancelled checks to them and they never would acknowlege they received them.
During the process of this, we got a letter from FAIRBANKS CAPITAL stating they now held our mortgage and our rate changed again to 13 3/4%. We started making our pmts to them and after 6 months, we got a letter from an attorney telling us we were 3 months behind and foreclosure was going to be initiated against us. When we contacted FAIRBANKS CAPITAL a lady there told us she used to work for CONTI and CONTI had gone bankrupt and that now FAIRBANKS CAPITAL was handling all their loans for them.
We told her of our dilema and she told us that CONTI was in big trouble and that FAIRBANKS CAPITAL was no better.
We faxed copies of our checks to the atty and he sent us a letter telling us it was a mistake, that the paperwork was being routed from Salt Lake City to New York where the bankruptcy was being filed and by the time it was credited back to our acct, it showed us as being late every month. He said it would not be held against us and to continue making the pmts to FAIRBANKS.
5 wks later, we got another letter from the same atty saying that we were now 10 months behind, and he was going to publish the notice of foreclosure in the local newspaper.
The very next week, people were in front of our home taking pictures of our house and telling us they were doing it for FAIRBANKS CAPITAL CORP and that the home was being foreclosed upon.
The next week, a notice appeared in the local paper notifying us of the foreclosure.
We went to a local atty and, after looking at everything we had, he advised us to file bankruptcy to stop the foreclosure. He has all the names, dates, phone numbers, letters, copies of the original mortgage with the bank, and everything else he needs to file a lawsuit. We are awaiting a pending lawsuit to start our own. We received a letter advising us that a class action lawsuit had been filed against FAIRBANKS and we were named as recipients for damages in that matter.
We ultimately went to a friend and borrowed enough money from him to pay off FAIRBANKS CAPITAL and never looked back.
It has been 3 yrs since the filing of our bankruptcy, and it has been an embarrasing ordeal for us. It has cost us our reputations, our motorhome, our bassboat, our pickup truck and made us both a complete nervous wreck. My wife had a nervous breakdown dealing with all this and since we both have jobs in the public eye, everyone who knows us knows about this ordeal.
We are not done with conti and fairbanks
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