Feel misled by mortgage company

[nomorehope]

What is the name of your state?What is the name of your state? Ohio
Hi. I need some advice and so far have not been able to find any. Briefly, in late 2003 I could see I was going to run into financial problems and decided to refinance, since my interest rate was 9.625%. At that point in time my credit was good, and my payment record was good. I did it online and a message popped up stating I needed to contact my mortgage co. directly so I did. I left my cell phone number but the person who was supposed to return my calls wouldn't, or he would call at a time other than arranged, leave me HIS number and I would return it, only to hear voice-mail. Unfortunately, I did have the financial problems I foresaw and several months later my place went into foreclosure. I was able to save it, but my initial problem remained because of the high interest rate. In addition, at that time I hadn't had a raise for the second year in a row, along with a lot of health problems, and my condo's maintenance fees kept increasing as well.

I eventually went through possible foreclosure again, but this time I had a foreclosure mediator intervene on my behalf. I was hoping they would get my interest rate lowered but they said once I pay on time for a year, reapply. I applied online again, got a message stating they couldn't do business in Cleveland because of an ordinance passed in 2003. I called them to say I live in a suburb but they still said they couldn't do business with me. I did some research and found out that the ordinance passed in 2003 forbids them (ABN AMRO) from doing business in Cleveland (it has to do with predatory lenders), but I also found out that was specifically for Cleveland, not the suburbs. I can't believe they wouldn't understand the law enough to know this, and I feel misled. I truly believe this was their thinking back in 2003 and that's why they weren't serious about trying to refinance. But if this was their thinking, they should have told me this up front so that I could have applied elsewhere. My credit prior to all of this was good and now it is shot. I am trying to hold on long enough to sell my place, because since my credit is so bad, I can't refinance with anyone. I have contacted several agencies and everyone I talk to says they've never heard of this or dealt with this situation before, which doesn't help me. I make too much money for legal aid, but I can't afford an attorney. Any advice would be appreciated.

[PghREA]

Originally Posted by nomorehope

What is the name of your state?What is the name of your state? Ohio
Hi. I need some advice and so far have not been able to find any. Briefly, in late 2003 I could see I was going to run into financial problems and decided to refinance, since my interest rate was 9.625%. At that point in time my credit was good, and my payment record was good. I did it online and a message popped up stating I needed to contact my mortgage co. directly so I did. I left my cell phone number but the person who was supposed to return my calls wouldn't, or he would call at a time other than arranged, leave me HIS number and I would return it, only to hear voice-mail. Unfortunately, I did have the financial problems I foresaw and several months later my place went into foreclosure. I was able to save it, but my initial problem remained because of the high interest rate. In addition, at that time I hadn't had a raise for the second year in a row, along with a lot of health problems, and my condo's maintenance fees kept increasing as well.

I eventually went through possible foreclosure again, but this time I had a foreclosure mediator intervene on my behalf. I was hoping they would get my interest rate lowered but they said once I pay on time for a year, reapply. I applied online again, got a message stating they couldn't do business in Cleveland because of an ordinance passed in 2003. I called them to say I live in a suburb but they still said they couldn't do business with me. I did some research and found out that the ordinance passed in 2003 forbids them (ABN AMRO) from doing business in Cleveland (it has to do with predatory lenders), but I also found out that was specifically for Cleveland, not the suburbs. I can't believe they wouldn't understand the law enough to know this, and I feel misled. I truly believe this was their thinking back in 2003 and that's why they weren't serious about trying to refinance. But if this was their thinking, they should have told me this up front so that I could have applied elsewhere. My credit prior to all of this was good and now it is shot. I am trying to hold on long enough to sell my place, because since my credit is so bad, I can't refinance with anyone. I have contacted several agencies and everyone I talk to says they've never heard of this or dealt with this situation before, which doesn't help me. I make too much money for legal aid, but I can't afford an attorney. Any advice would be appreciated.

There is more to the story than you are telling us. Interest rates for people with "good credit" and "good payment history" was in the high 5 low 6 percent interest bracket in 2003. With all the lenders in Cleveland, why would you choose an internet lender?

[nomorehope]

I bought my place in 1994. My original lender was Mellon Mortgage, who sold my loan to ABN AMRO a few years later. Also, I am not aware this is an internet lender? I am not sure if this has any bearing on this, positive or negative.


Thanks.

[Blacky1]

ABN AMRO (Interfirst) is one of the largest wholesale lenders in the country and they did in fact back out of Cleveland and surrounding areas (all of Cuyahoga County, I believe) along with a slew of other lenders when that particular predatory lending law was passed.

PGHrea is right, interest rates were much lower in 2003 than what you are stating. Interfirst, as I call them, has the best rates out there right now. I'm set up with 176 wholesalers and use them often. I would say you got taken by Mellon Mortgage who appears to be a correspondent affiliate of ABN AMRO.

Were there 2 transfer of sevicing disclosures signed at the closing table?

Do you have a copy of the closing documents?

In the future, to avoid foreclosure, file for forebearence. Your lender will guide you in the right direction as far as this is concerned.

My advice is to pay off as much debt as possible or pay down. Especially credit cards with high balances.

Any broker should be willing to work with you to help get your credit straightened out. Ask your broker about a rapid re-score after you have paid your debt down. If they use Funding Suite as their CRA, have them run a what if. I would love to help, unfortunately I'm in Arizona and I am not licensed in Ohio and probably couldn't do anything anyway due to Clevelands ordinances. There is just to much liability there now. Good luck.

[nomorehope]

Thank you for replying, Blacky1. My first post was kind of long and I unintentionally left out info the first time. But I originally bought my place in 1994, when interest rates were higher. I tried to refinance in 2003 due to the fact that interest rates were much lower than what I had when I first bought. And I applied online (since I was able to track payments, etc... online)-it wasn't an internet lender. So someone reading the original post may have been a little confused. Since all of this, I have lowered my debt, and have only one credit card. But because of the high interest rate, I am basically treading water right now. I guess I want to know if there is any legal action I can take? Like I said in my first post, I talked to someone who said that the ordinance was only for the city of Cleveland and not for the surrounding areas.

Thanks again for the advice given.

[Blacky1]

I would keep at least 3 open tradelines. In all honesty with a lender the size of Interfirst, you would get eaten alive. They have a huge federal and state regulatory compliance department along with several attorneys. Everything they have told you is true. The city of Cleveland in looking out for the consumers best interest... kind of, screwed itself, for lack of a better word.