Save My House----2/6arm 24month Fx Rt

[rodroaz1]

What is the name of your state?AZ
Save my house..

I am barely able to afford my house that I purchased new back in December 2004. I purchased on an ARM 2/6 with a fixed rate of 2 years. Yesterday I get a letter in the mail stating that EMC( mort comp.) is going to raise my rate by approx $300. What an outrage I will certainly lose my house or have to sell it. So in a pantic I grabbed my loan papers on the way to work this morning to look them over. Sure enough on the Lending Disclosure Statement it says that the rate change may commence on the 1st of July2005. Of course being that this is my first home I didn't fully understand all of this foreign language when I sighned the contract, but I was definitley lead to beleive that my rate would not change for 2 years and I figured I would beable to refinance at a better rate by then to avoid the rate change.

That being said there is another document that is not signed but it states my
loan Program name. It reads as follows:

INT.-ONLY FIRST 2 YEARS
2/6 MONTH ARM
FIXED FIRST 24 MONTHS
3/1.5/6% CAPS, FLOOR=START RATE

notice this fixed rate...
The document goes on to say and I quote:
"Your rate and interest can change after the first twenty-four months and every six months thereafter."

To me it appears that the contract contridicts itself.
As for what I was lead to believe, well the mortgage lender (concord) reassured me that I would not experience a rate change for 2 years.

In closing I am asking for any suggestions as to what I can do or if there is someone who speaks "Legal" that can decifer my contract.

Please help....or I will lose my house..
Respectfully
RodroAz

[mort banker]

MA-national too
My best advice would be to refi, You can def. get a rate lower than you have now to free up some of you money but also you can do a 5/1 ARM or a 10/1 ARM. I wouldn't even bother trying to decipher your papers, redo them so that you are satisfied with them. Your mortgage Banker should have made certain you knew exactly how the payments were going to work & when the rise in pament would occur, it is their job to make sure you are very clear in your understanding of those things, it is afterall your biggest purchase.
thanks feel free to email me with other questions

[HomeGuru]

Originally Posted by rodroaz1

What is the name of your state?AZ
Save my house..

I am barely able to afford my house that I purchased new back in December 2004. I purchased on an ARM 2/6 with a fixed rate of 2 years. Yesterday I get a letter in the mail stating that EMC( mort comp.) is going to raise my rate by approx $300. What an outrage I will certainly lose my house or have to sell it. So in a pantic I grabbed my loan papers on the way to work this morning to look them over. Sure enough on the Lending Disclosure Statement it says that the rate change may commence on the 1st of July2005. Of course being that this is my first home I didn't fully understand all of this foreign language when I sighned the contract, but I was definitley lead to beleive that my rate would not change for 2 years and I figured I would beable to refinance at a better rate by then to avoid the rate change.

That being said there is another document that is not signed but it states my
loan Program name. It reads as follows:

INT.-ONLY FIRST 2 YEARS
2/6 MONTH ARM
FIXED FIRST 24 MONTHS
3/1.5/6% CAPS, FLOOR=START RATE

notice this fixed rate...
The document goes on to say and I quote:
"Your rate and interest can change after the first twenty-four months and every six months thereafter."

To me it appears that the contract contridicts itself.
As for what I was lead to believe, well the mortgage lender (concord) reassured me that I would not experience a rate change for 2 years.

In closing I am asking for any suggestions as to what I can do or if there is someone who speaks "Legal" that can decifer my contract.

Please help....or I will lose my house..
Respectfully
RodroAz

**A: sell your home and next time read the contract. It is required to be in English if that is your first language.

[mort banker]

Actually I would have put you in a 5 yr arm interest only & called you back to refi that rate before letting the rise in payment occur. five years fixed rate & refi before the adjustment period comes so there isn't shock on the payment for you. you can do that as many times you like while you home gains equity. or perhaps a GPM this would reduce your monthly payment by 40% what are you mortgaged for?

[sefnfot]

call concord 1st and ask them to explain the contradiction

[efflandt]

Just a wild stab in the dark, but my guess is that this has nothing to do with your mortgage interest rate. I suspect that since it was a new home, the only tax history was for an empty lot, and they underestimated the amount to collect for tax escrow. Now that they know, they are playing catch up with your escrow account.

Either that or they had an initial promotional interest rate discount that expired. I have seen that mentioned in disclosure statements for HELOC loans.

I certainly hope they included a statement explaining or showing what the increased payments are for. I also hope you will be ready for the real interest increase when that rolls around.

[Roselady]

EMC has a huge reputation of Mortgage serving fraud.

Do a search on MSFraud. See what you come up with.

Try to refi if you can- EMC may have already ruined that for you. Get away from them. They are a foreclosure mill.