I was tricked while refinancing my mortgage back in feb 2007

[jigrig]

What is the name of your state (only U.S. law)? New Jersey
Hi, short as I can.
I refinanced my mortgage in Feb 2007 to what I was assured was a 30 yr. fixed rate of 6.125, the closing was at my home, at first 2 men showed up but when I read the settlement charges $10,492.18 I made a stink that this was not what I was told, one of the men called another guy who came over my house & assured me that it was included in my refinance & showed me the top sheet on the about 1/2" pile of papers which read
PAYMENT LETTER TO BORROWER
FROM-i'll leave this blank for now
RE Loan No.-
Property address-My home
TO- me
Dear Borrower
The monthly payments on the above refered to loan are to begin on APRIL 1, 2007, and will continue monthly until MARCH 1, 2037
Your monthly payment will consist of the following:
PRINCIPAL AND INTEREST $867.71
RESERVE FOR TAXES 256.75
RESERVE FOR INSURANCE $56.25
TOTAL MONTHLY PAYMENTS $1,180,71
You are to make your payments to-blah blah
nothing else.
He then showed me the:
READ BEFORE SIGNING
PLAIN ENGLISH CLOSING FORM
which for the most part gave the same info as the 1st form plus the amount $170,000.00 & "Your loan has an interest rate of 6.125 %" & some other stuff as he refered to as" the usual stuff"
I have been physically disabled & on SSDI since may 28th 2002 & on some pretty potent medications, anyway I signed.
They immediately sold my mortgage back to my previous mortgage co. Citimortgage.
Anyhow, I just made my payments on time everytime & because I didnt have to file taxes last year, I didnt even look at my end of year mortgage statement.
Recently I was curious as to what the balence of my principal was & lo & behold, it was exactly the same as the day I refinanced so I looked around & finally saw on my mortgage statement next to TYPE OF MORTGAGE: fixed/10 YR INT ONLY.
I then had what is what I would call a cross between a nrevous breakdown & a transformation into The Incredible Hulk.
I am on a fixed & limited income but I do have some money set aside for emergencies.
I have an offer to refinace with Citimortgage but my payments will be over $200.00 a month more which I can ill afford.
I should add that these crooks KNEW my situation.
Can anybody help me in as much as is there a law against this or am I gonna lose my house eventually.
Thank You & have a safe & Happy Thanksgiving.
SUCKERED IN SO. AMBOY

[FlyingRon]

Given the numbers you have posted here, you have a fixed rate 6.125 mortgage that is interest only for ten years and (then presumably converts to a normal amortization). Your payments will stay flat until 2017 when the P&I will go from $867 to $1230.

I'm sure this was spelled out in the TILA docs. Actually, this man not have been (and still may not be) a bad deal for you . 6.125 isn't too bad of a rate.

[HomeGuru]

Originally Posted by jigrig

What is the name of your state (only U.S. law)? New Jersey
Hi, short as I can.
I refinanced my mortgage in Feb 2007 to what I was assured was a 30 yr. fixed rate of 6.125, the closing was at my home, at first 2 men showed up but when I read the settlement charges $10,492.18 I made a stink that this was not what I was told, one of the men called another guy who came over my house & assured me that it was included in my refinance & showed me the top sheet on the about 1/2" pile of papers which read
PAYMENT LETTER TO BORROWER
FROM-i'll leave this blank for now
RE Loan No.-
Property address-My home
TO- me
Dear Borrower
The monthly payments on the above refered to loan are to begin on APRIL 1, 2007, and will continue monthly until MARCH 1, 2037
Your monthly payment will consist of the following:
PRINCIPAL AND INTEREST $867.71
RESERVE FOR TAXES 256.75
RESERVE FOR INSURANCE $56.25
TOTAL MONTHLY PAYMENTS $1,180,71
You are to make your payments to-blah blah
nothing else.
He then showed me the:
READ BEFORE SIGNING
PLAIN ENGLISH CLOSING FORM
which for the most part gave the same info as the 1st form plus the amount $170,000.00 & "Your loan has an interest rate of 6.125 %" & some other stuff as he refered to as" the usual stuff"
I have been physically disabled & on SSDI since may 28th 2002 & on some pretty potent medications, anyway I signed.
They immediately sold my mortgage back to my previous mortgage co. Citimortgage.
Anyhow, I just made my payments on time everytime & because I didnt have to file taxes last year, I didnt even look at my end of year mortgage statement.
Recently I was curious as to what the balence of my principal was & lo & behold, it was exactly the same as the day I refinanced so I looked around & finally saw on my mortgage statement next to TYPE OF MORTGAGE: fixed/10 YR INT ONLY.
I then had what is what I would call a cross between a nrevous breakdown & a transformation into The Incredible Hulk.
I am on a fixed & limited income but I do have some money set aside for emergencies.
I have an offer to refinace with Citimortgage but my payments will be over $200.00 a month more which I can ill afford.
I should add that these crooks KNEW my situation.
Can anybody help me in as much as is there a law against this or am I gonna lose my house eventually.
Thank You & have a safe & Happy Thanksgiving.
SUCKERED IN SO. AMBOY

**A: I do not see how you were tricked.

[jigrig]

I understand this could have been prevented had I gotten legal help for the closing, my point is that I was told one thing but got something I never would have taken.
I dont make enough to file taxes so the interest isnt any write off for me & when the 10 years is up, so is my time here.
I guess all I can hope for is int. rates to go way down & refinance because the option I have now is no help.
The current mortgage holder says that any payments I make towards principal will not lower my monthly payments even though after going over my documents it says any principal payments I make during the 10 years will lower my monthly payments.
Had I read everything I wouldnt be here now so it is my fault but I guess You dont believe what I've written.
My point is, I was decieved, I dont expect any pity nor do I want it but I cant help but wonder how many others with a Family to worry about got duped because they didnt read every page very very carefully or better yet, hire a real estate lawyer.
With any luck I'll die before the 10 years are up.
Thanks anyway.

[FlyingRon]

You should have gotten a TILA disclosure indicating the payment change in 2017.
You should have filed last year anyhow to get the stimulus payment. It's possible that the rates will drop. You need to get down just under 5% to get the same payment you are making now (or 5.4% if you can get a 40 year note).

If your loan docs say that principal reductions will adjust the future payments, the it will. They can't change that. Loan servicers are often wrong.

Something is amiss if you thought you were getting a regular amortization 30 year mortgage at 6.25% and paying only $870/mo.

[jigrig]

I've been fighting with my former employers ins. co since I became disabled & just now recieved a notice that I will start recieving substantial payments monthly that will continue till I turn 65 so now I'll pay this thing down plus I dont know what the tax laws are in NJ but I'm paying almost $11,000 a year in interest & now I would think I will be getting a refund since the new income is taxable.
I'm sure I cant get more back than I pay but what I do get will go directly to principal.
Thanks.
Oh yea, it never dawned on me about how low the payment is, chalk it up to opiates antidepressents with some beers for good measure.

[rowz]

I just gotta ask.

You knew that you were either drunk, drugged or just plain not competent enough to read all of your loan documents and/or understand what they said, yet you signed.

Why then, being all unsophisticated enough about what you were about to embark upon did you not consult a lawyer about what the heck you were doing.

Even living in So. Amboy, though its a handicap is not enough of an excuse to cry 'I was duped!'. Being disabled is not either there are tons of programs & assistances available to those that need it.