We refinanced our home in 1989 with Beneficial. At the time my husband and I thought we were financing a 20 yr. Mortgage with this company. We had a few late payments but always paid. My husband was laid off his job and we got behind two payments. We went in and talked to the company and they said no problem they would just put the amount owed at the back of the loan and we could start fresh. We went in to their office to work this out but were given no papers to sign - was told they took care of it.
Two months later they started foreclosure proceedings against us. To avoid losing our home we filed a chapter 13 bankruptcy. We have been paying on this for two and a half years.
Recently we decided we would like to sell and move to another state. We phoned the company to get a payoff amount.in 1989 we financed $45,000.00. We were told as of July 12 our payoff amount on this loan would be $56,000.00. We were told that the particular type loan we had - they didn't offer anymore because it was against the law. That it wasn't a 20 yr. Mortgage like we thought. We were informed that there was no payoff date and that it was open ended and could go on for eternity.
It was set up just like a credit card account only called a revolving account. We knew that we had a variable rate that would go up and down but didn't know it was like a credit card.
Had we known what we know now about the mortgage -we would have let them have the house. If we continue as we are - each day the interest accumulates. We don't know what to do, except sell and pay the high price that they now say we owe.
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