On or about January I took attempted to get a loan modification for two mortgage loans, totaling more than $500,000. At the time I took out the loans to buy out my partner, I was told that the only product that Fairwinds Credit Union, Orlando, Florida, had for an investor was a 5-year interest only loan and that it could be refinanced before the 5 year term was up. I didn't like the arrangement because I would have two pay for two closings, the original one and the one before the five years were up. Because of the respect that I had gained the the mortgage loan officer and the fact that it had been pre=approved, I applied for the loans. (This was near the beginning of the housing bust.)
I completed the entire application process for two houses within 15 minutes, because of the 'trust' that I gained with the mortgage loan officer and the purported reputation of credit unions being in business to help its members. One of the documents that I signed was my acknowledgement of a balloon mortgage for each of the loans. Again, I was assured that I could re finance before reaching the five year term
Meanwhile, the housing market crashed. I attempted to get my loan modified, but was denied. The Fairwind’s promise of my being able to refinance the loans within the five year period is the only basis for which I proceeded to apply for the loans. I wrote the CEO of Fairwinds Credit Union, not expecting a response, but he did respond with a sugar coated letter that reaffirmed Fairwind's decision to deny my loan modification request. I had the income, 700 credit score at the time.
Fairwind's decision not to modify the loan at the time started my downfall from a net worth of approximately $1 million to total financial ruin. With the advice of an attorney experienced with foreclosures, I stopped making my mortgage payments, hopefully to force Fairwinds into negotiating a loan modification. About a year later, they did offer an unacceptable modification proposal which I would have accepted a year earlier, but meanwhile I lost my job due to the government cancelling a major Army contract, and I could no longer accept the proposed modification.
Fairwinds predatory lending practices and false promises totally ruined me. I am considering take legal action against Fairwinds Credit Union, but have yet done so. Any advice would be appreciated.
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