I applied for a interest only refinance with Allied Mortgage company in Virgina. It was to be am ARM with an adjustment yearly, based on the average treasury index, if and only if I was not making principal payments. Otherwise, my rate would adjust in five years and then yearly there after. I was told at closing upon repeatly that my rate was fixed and would not change until the change date. I was provided with a Truth-In -Lending statement reflecting the same information I was told, based on payments of interest only.
My interest rate has changed every month. My monthly payment has incresed every month. I've had the loan only since March 04 and my payment has increaded $200. I paid additional principal and payed a month in advance of my payments, however, nothing I have done has decreased my monthly payment. I select option 4 for the 15 year payment plan, and my payment still go up with payment of $400 - $600 per month in principal payments.
I was sent a copy of my proissay note indicating the montlhy change in interest rate was something I agreed to, however there is no siginature on that page. It is contraty to the information provided to me at closing and during the process of soliting my business. I was in a 6 month adjustable mortage and did not like that. The sole reason for going to a longer adjustment period. I was informed that my interest rate would change monthly, which is contary to even their documents indicating a change on the change date which was potrayed to on an annual basis.
My last payment was for a 15 year option, with $400 in additional principal. They applied my money to an advance payment, because it fit their purposes. To date the mistake has not been corrected. According to their customer service person, the computer did it and they were going to reapply the funds. It has not happended yet. They also so stated that there was a difference in what they were billing me, than what was reflected in their system. Where was the additional money going? I got no response to that either.
I beleive the companies are involved in a scam and make it very costly for people to prepay the loan at a whoopoing 3% of the origional loan amount.
I want justice in the form of the companies doing what they said they would do, verbally and contractually.
I want to know what federal agencies handles cases like this.
Its fraud - a misrepresentation of the truth.
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