39 Comments

1. Thank you Ralph for helping me get my story out there. while it may be too late for me and my family, I hope that by telling my story I will be able to help out others before they get to the point I am at now.

   I appreciate the opportunity to tell my story here. I hope it does some good. I will keep this post updated as to my current situation as it changes. Currently , I am having to sit tight and wait to get my ‘breach letter’ from GMAC mortgage as I am still not able to catch up my loan yet. If it doesn’t come by next week, I am hoping to make my September payment….

   …then again, we’re in October, aren’t we?

   Thank you again, and I will keep those interested updated.

   Lisa Ashton

   Comment by lisa ashton — October 6, 2007 @ 12:26 pm

2. :::When you seek the advice of any professional–a doctor, attorney, accountant, Realtor, or whoever–you expect that the person is going to give you accurate information and reliable advice. You do not expect the person to flat out lie to you.

   We have to stop blaming homeowners for the current mortgage meltdown
   :::

   Gosh, Ralph, I couldn’t agree more. It’s time to quit blaming the victims and make sure that those responsible pay - and pay dearly.

   Comment by Dawn — October 6, 2007 @ 1:31 pm

3. Just an FYI…I thought i would go back and check out my IRS 1040 from the year 2005. This would have been what a mortgage company SHOULD have used to verify my income…makes sense since the mortgage was written and closed in 4/2006…right?

   Well, my gross income for 2005 was….$36,858
   and MY adjusted income for 2005 was…$32,652

   For 2004 My gross income was only $25,291..

   I guess you really had to ‘bump up my income to show that I could afford a $493,000 mortgage..huh??

   Amazing…

   LIsa

   Comment by lisa ashton — October 7, 2007 @ 8:20 am

4. I will start by saying I am a Realtor in California. I do however hold tight to a very hard line of doing business with the highest degree of integrity and honor. I am appalled that so many innocent people have been drastically affected by this situation.

   This is a perfect example of so-called “professionals gone wild.” These people have all been affected by that evil word, GREED. The professionals are greedy to the extent that they will do ANYTHING to get a loan funded, no matter who it hurts. This belief goes for all the Appraisers that have worked so hard to…”find the value” to support the sales price. I do, however, reserve the right to say that this industry, as well as other industries, are filled with good honest people doing great work for consumers.

   There has been GREED from both the consumer and professional side. Today consumers are a different breed. Consumers think of there home as only an investment not as the place of raising a family and the being the basis for the family security. It is all about the money. It is all about instant gratification and getting what you want and not waiting for it. People are constantly in pursuit of getting and having in many cases more than they can afford…be it cars, boats, vacations, etc. This also means buying a larger and more expensive homes than they can afford…made possible by the type of mortgages and qualification programs made available by most of the lending entities in this country. I will only say that most people are intelligent enough to figure out whether they can afford a certain payment or not. The internet has given us unlimited resources to find out what a payment is on any loan at any given interest rate.

   Recently I was planning to go on a listing appointment in Hemet, CA. I had spoken to the client earlier and they had postponed the appointment because they were in the process doing a “cash out” refinancing of their home mortgage prior to listing their home for sale. This was done so they would have the funds necessary to close escrow on a new home they had already contracted to buy even if they had not sold there current home. I called them when the loan had funded to find out that their home had been appraised at $500.000 and they received a loan of $400,000. Since I had completed some preliminary evaluations of the market in the area, I had to inform them that the current market for their type of home at this time was selling for $375,000-400,000. How did that appraiser support that value? The marketing time currently is 90-150 days. I had to tell them that it was impossible to complete the purchase of the new home by selling their current home. There was not enough equity to support the transaction. Unfortunately they were mad a me for telling them the truth…the truth hurts sometimes. This is only one story that I have experienced in todays market with thousands of home owners in a very dangerous position because they have taken most or all of the equity out of their homes for other uses or purchased homes at the high part of the market with 100% financing with no means of keeping that loan current until the market recovers or the rates for a refinance go down.

   I do believe most of our troubles have been a result of greed on both sides. I do feel sorry for the problems many consumers are having.

   I do not know what the answer is for the lending industry. I will continue to monitor my client’s situations and advise them keeping their financial wellbeing paramount.

   Comment by Tom — October 8, 2007 @ 12:58 pm

5. I’m happy knowing there are still honest people out there that will do what’s best for their clients.

   I wish I had known someone like you when I was naive enough to trust the mortgage company I DID trust. As a nurse, I know very little about mortgages and how they work, as well as the finances that go along with them.. That is why I hired a mortgage company to take care of it for me. I wish I had known more, so I could have protected my family and my home.

   I hope people are able to read this website and protect themselves as best they can, and not be taken the way I was. Had I known what they had in store for me at the closing the process would have been stopped much sooner.

   THanks for all those that you help. Hopefully, it will be many from here.

   LIsa Ashton

   Comment by lisa ashton — October 8, 2007 @ 3:32 pm

6. Tom,

   You do sound like your genuinely honest. I do hear what you are saying and I really hope you continue to serve your clients with the highest degree of integrity and honor.

   Comment by K-Legal — October 9, 2007 @ 9:10 pm

7. K-Legal,
   Do you have any suggestions for me that might help out my situation at all?

   LIsa

   Comment by lisa ashton — October 10, 2007 @ 9:39 am

8. Lisa,
   Aegis Lending gave us a good 1-2 punch as well. I would never trust a mortgage company again because of them. They lied straight to me and my husbands face at the closing table. They told us that we would never have a prepayment penalty. It turns out when we sold out house, we had to pay over $6000 in pre payment penalty fees and they showed me in my contract where it was. I should have read every detail of the contract before signing, but I didn’t. I trusted the mortgage company to be honest… Come to find out they rarely had loans without a pre-payment penalty. HUH!!

   Comment by Laura — October 10, 2007 @ 11:48 am

9. Lisa,

   Suggestions? Well, I cannot suggest legal advise because I am not an attorney. However, I associate with Counsel so I analyse the industry every day. I see just so much of this mortgage mess on a daily basis…from the customer’s perspective, the Lender’s pespective, the State/Federal Reg’s perspective and the Investor’s perspective (you should see all these pissed off Investors suing Lenders). But, I will tell you this…the Regulators are not happy with the current foreclosure rates and it seems as though every other day there are regulations coming out impacting Lenders in order to protect customers.

   I hear you and I feel for you. I would do anything possible in order for me to keep my home if I were you as well. But I am interested in this Breach Letter from GMAC? Do you know exactly what this letter entails?

   Comment by K-Legal — October 10, 2007 @ 1:06 pm

10. THe Breach letter they are sending me comes out on 11/1/2007 unless I’ve made payment by then. It says that I am being given 60 days to pay my mortgage in full, as stated in my mortgage documents, or the loan will become fully deliquint, and they will start foreclosure proceedings on my home.

    GMAC Supervisor, Joan Lamont, said that ‘their investor has told they are not to work with clients to lower their mortgage rates or payments,” and she went on to tell me that ” my invester has said he would much rather have your home that negotiate a losing proposition with you to save your home”. It was , as it sounds, a lovely conversation.

    I found a lawyer that I will be meeting with in my area that deals with predatary lending. I’m hoping to find out just what, if anything I can do at this point. My question is also, did GMAC know about all this when they actually purchased my loan from Aegis in the first place? If so, does this also make them liable ?

    Lots of questions, and no answers at this point… Laura,. I”m sorry ou had to go through the same mess with Aegis. If there were enough of us out there we could file a class action suit or something!

    Best of luck to you as well.

    Lisa

    Comment by lisa ashton — October 11, 2007 @ 12:55 pm

11. Lisa,

    So far.. most Lenders/Investors, if not all, have treated all their customers in your situation in such way..they will NOT work out (even a temporary plan) with the homeowner to help them get caught up. I also have heard that GMAC (as well as other Lenders) will not even accept partial payments..they rather foreclose on your home. In this situation, this may benefit the Lender/Investor and not you the homeowner. But with your attorney’s guidance you will see what your position is in this whole mess since you very well may have been a victim of Predatory Lending. There are many, many homeowners right now that fell for deceptive lending. Whether you read (or didn’t read) every word in the disclosures you signed on with the Broker/Lender, “STILL” many people have been victimized by “mortgage professionals”(as they like to call themselves) and since the number of victims are insanely increasing, the accountability needs to be on these culprits. There would not be justice if all these victimized homeowners are the primary cause of this crisis..good for you for contacting an attorney who specializes in Predatory Lending issues. Let us know the outcome. Good Luck!

    Comment by K-Legal — October 11, 2007 @ 2:30 pm

12. I just got a letter dated 10/3, 3 days late on my mortgage mind you, from GMAC ‘demanding’ both Sept. and OCT.’s payment within 30 days, equaling over $5900.00 or they will start foreclosure proceedings on me.

    They said in the letter they have the right to come into my property at any time to inspect it, and that they will not accept any partial payments to stop the proceedings from going forward. they said I have to pay in a money order.

    Can they do this after only 1 month late, or rather 3 days late??!! Do they seem to be panicking to you? Or is it just my reaction here….

    LIsa

    Comment by lisa ashton — October 12, 2007 @ 6:54 am

13. Lisa,

    Panic and Manic seems to be what these Lenders are experiencing. In looking at their perspective, they are probably being told “as collectors” to Collect!!! But in looking at it from your perspective, you are only three days late and already you are being hounded by the Collectors and causing you stress??? Oh, I would say they have already taking steps to assume the worst from customers having mortgage payment issues.

    Have you been in contact with your attorney as of yet?

    Comment by K-Legal — October 12, 2007 @ 2:23 pm

14. no I have calls into the attorney recommended to me, but haven’t heard back yet. It’s hard to find an attorney who knows the predatory laws here in RI…..if anyone out there can help, please let me know! The panic letter makes me think that GMAC has something to hide, like maybe they knew about all this prior to it happening…because the OCT. 3rd letter is dated the day I spoke with the supervisor who told me I had until the 15th to make a payment, and then a letter would be sent out…and I asked her if GMAC knew about any of this, and she wouldn’t answer me straight out….hmmmm…I”m wondering now..why the rush?!

    Lisa

    Comment by lisa ashton — October 12, 2007 @ 3:07 pm

15. Lisa,

    Since it is difficult to find an attorney when you need one and I happen to be a Paralegal (AND my attorney’s “Saving Grace”), I went ahead and did some initial research for you. I found some information that may help you get to the next step as you wait upon contacting an attorney:

    Looking back when you said the “Supervisor who told you..you have until the 15th to make a payment, and then a letter would be sent out”…. that is based on this following notion:

    “When is a mortgage delinquent?”

    The mortgage payment is considered late if the lender or service receives it after the due date set out in the mortgage. A history of chronic lateness will harm the owner if or when a real emergency occurs. Serious consequences can begin when a payment is more than 15 days late. Here is a typical scenario:

    At 15 days late: The lender usually charges a late payment fee (the timing and amount of late charges vary from lender to lender or servicer to servicer).

    Two or more mortgage payments owed: Unless specific arrangements are made with the lender, all payments and late charges must be made before another payment is accepted and the loan is considered current.

    Three or more mortgage payments due and unpaid: The loan may be given to the lender’s attorney and foreclosure proceedings initiated. The entire balance of the loan may be due and payable immediately. In addition to the loan payments due, the owner is liable for legal fees incurred by the lender. At this point, the owner is in danger of losing the home.

    NOW!! Lisa, look at this….”Lenders often can help
    An agreement between borrower and lender to prevent the loss of a home is called a loan workout plan. It will have specific deadlines that must be met to avoid foreclosure, so it must be based on what the borrower really can do to get the loan up to date again.

    The nature of the plan will depend on the seriousness of the default, prospects for obtaining funds to cure the default, whether the financial problems are short term or long term and the current value of the property.

    If the default is caused by a temporary condition likely to end within 60 days, the lender may consider granting “temporary indulgence.” An example of where this would be considered is a house that has been sold but the sale has not settled; another is a pending insurance settlement. The lender will want documented evidence, such as the sales contract, before granting indulgence.
    In some cases, it may be impossible to make any payments at all for some time. For those who have a good record with the lender, a “forbearance plan” will allow them to suspend payments or make reduced payments for a specified length of time. In most cases the length of the plan will not exceed 18 months and will stipulate commencement of foreclosure action if the borrower defaults on the agreement.

    Talk about all of this with the Supervisor you are in contact with. Remember, they hear cases like yours all the time, but if you show them “effort” that may change their mind about the customer (you) they are dealing with.”

    I hope this helps.

    Comment by K-Legal — October 12, 2007 @ 3:42 pm

16. THanks for looking all this up for me. I will try and speak with her on Monday about what you said. I agree that it should have been at least 60 days late before I got the ‘demand ‘ letter I received telling me I had to pay the full 2 months worth of mortgage up front in cashiers check or it will go into foreclosure. I had JUST missed sept. payment and was 3 days beyond the 1st 30 days…it just doesn’t add up to me, that they would already be demanding OCt. ’s payment in cash as well as I was only 3 days into the month of OCT at that point????

    I’ve tried to work it out with GMAC for the past 3 months..with their loss mitigatation dept. But backed with our info I will try again on Monday.

    Thanks for all your support and help

    Lisa

    Comment by lisa ashton — October 13, 2007 @ 9:10 am

17. The most stressful problem for the homeowners occur when their home is foreclosed upon, because the original lender got them approved for an inapproptiate loan (100%) LTV on the basis of overstating their gross income. Most homeowners trust their mortgage lender and do not review the documents when they sign them. The homeowners can’t afford the mortgage payment. Their home is foreclosed upon. Now the most difficult problems occur. The homeowners file for Bankruptcy, and the mortgage company that purchased the loan, requests of the court that the debt (deficiency)is non-dischargable! I have no idea if the Trustees and/or Bankruptcy Courts are going to force all of the homeowners in this situation to repay the unsecured debt (the mortgage loan deficiency is the amount of loss the mortgage company incurs after foreclosure. Ralph, I would appreciate your comments and comments from your readers. Thank you.

    Comment by rick — October 18, 2007 @ 1:36 am

18. I know..I am ‘upside down’ in my home. They appraised it for about $130,000 more than they could ever get for it for sale..which means I would have to pay the rest of this off….I’d like to know with what? Can they get blood from a stone??? I know they are allowed to take up to 40% of my paycheck..but then I’[ll be left with no money to even get an apartment on?

    I’m really in a jam, as are many, many others out there…no where to turn..no one to help us..

    thanks for your letter..I’d be curious to hear what Ralph says as well..

    Lisa Ashton

    Comment by lisa ashton — October 18, 2007 @ 2:04 pm

19. ok, here’s the latest. Yesterday in the mail I get a letter from GMAC dated exactly 2 days after they said ‘they would rather have my home than refinance it for me ‘….

    the letter states that they have SOLD MY MORTGAGE to some othe unsuspecting company I”ve never heard of : ” Select Portfolio Servicing INc. Effective 11/1/2007. This means they don’t have to answer the letter I had sent to the vice president of customer service/loss mitigation ..how convenient? I feel sorry for the poor loan company that gets my loan when it is so upside down…

    I called the new company even though they don’t own the loan yet and let them know that GMAC was selling them a loan that is way overpriced, and that I was having trouble paying on. They asked me if they could ‘record my phone call for their records’. I told them I would need to check with my attorney first.

    I think the way things have moved so quickly wiht GMAc since all this began with me and my payment problems, that they definitely KNEW about the qualifying problems with me PRIOR To their getting the loan? Why else would they be in such a hurry to
    1) send me a breach letter after only 30 days late, and then 2) sell my mortgage so they dont’ have to deal with it????

    Just my opinion here…

    Lisa Ashton

    Comment by lisa ashton — October 23, 2007 @ 1:03 pm

20. Lisa,

    Very interesting..

    With all this litigation.. fraud scandals..and back-stabbing going on with these Investors, Lenders, Brokers, etc…how can these companies even trust each other? I would be glad to find out a little more about this issue and research it for you.

    I will get back to you, shortly!

    Comment by K-Legal — October 23, 2007 @ 6:24 pm

21. Lisa,

    Have you googled for “Select Portfolio Servicing, Inc”? It is not looking good, I am sorry.

    Look:
    http://www.ripoffreport.com/reports/0/215/ripoff0215834.htm

    Report: Select Portfolio Servicing, Inc

    “Select Portfolio Servicing, Inc ripoff, adding other fees that cant be explained,outrageous late fees added Salt Lake City Utah..”

    Comment by K-Legal — October 23, 2007 @ 6:29 pm

22. Lisa,

    It seems that on August 2007, The Federal Trade Commission (FTC) reached an agreement with “Select Portfolio Servicing, Inc” and modified certain terms of a 2003 court settlement….See the article in it’s entirety..google “FTC, Subprime Mortgage Servicer Agree to Modified Settlement”

    So they were sued in the past..perhaps in a class action suit, in other words, it looks like they are trying to get their “act” together and start fresh…that sounds like a benefit to the customer. You know, this may be a good thing for you…it very well may be that Select Portfolio Servicing, Inc will be that Mortgage Servicer that “will” work with their customers..soon to be you…

    Comment by K-Legal — October 23, 2007 @ 7:25 pm

23. THanks for this info.. as soon as I received the letter I called them. however, they do not have my loan or even a loan number for me yet….I will have to wait until NOve. 1…

    …watiing is so hard when it’s your home at stake..

    thanks for all your help everyone
    Lisa

    Comment by lisa ashton — October 24, 2007 @ 8:46 am

24. the latest as of 11/10/2007 is that a famous national attorney , Chris LeBrebre of RI was going to take my case , becasue he determined it was truth and lending fraud. Well, when I met with him, he decided even though it was fraud all right, he couldn’t or wouldn’t represent me, as I didn’t have enough equity in my home for him to get his 50% commision! that;s right..I said 50%!!! So he wouldn’t take my case.

    Now here is a lawyer who is supposed to HELP people like me, and he’s so damn concerned about being paid, that he can’t see the forest for the trees here, and see that my family and I are being harmed in all this, and maybe, just maybe he could help me without worrying about the money…

    but NO…so now I have no one to turn to . Everyone and every agency has turned me down. I have had truth and lending fraud committed against me, along with many other crimes, but these bastards are going to get away with it, and I”m going to lose the only home we’ve known for 22 years.

    Yes, I’m good and angry now. A lot of good it will do me. I’m basically forced into a corner with no one to help me at all. NIce world we live in….huh?

    Lisa Ashton
    lla2@cox.net

    Comment by lisa ashton — November 20, 2007 @ 12:46 pm

25. Lisa, I understand that you’re scared and angry. I have to ask, though - exactly what do you think is YOUR responsibility in all this?

    I’ve been defrauded and I’ve been every bit as angry as you are. The first step to digging out of the hole was owning my own role in the mess, and then developing a plan of action to move forward.

    If there was truly a crime committed against you, I suggest contacting your state attorney general or the FBI. It’s not reasonable to expect an attorney or any other professional to get you out of this mess for free. That’s how they earn their living. I assume you feel you’re entitled to tha paycheck for the work you do each day.

    I really do wish you well. However, you need to quit being angry and waiting for someone to save you. Make a plan and start acting on it, or you will find yourself homeless.

    Comment by Dawn — November 21, 2007 @ 11:28 pm

26. ok, since JUne I have done everything in my power to fix this situation. sure I blame the mortgage company for committing predatory fraud, and YES

    Comment by lisa ashton — November 23, 2007 @ 8:01 pm

27. I have contacted the fbI and the attorney general’s office, and they found that ‘predatory fraud’ has occurred here…

    I’m good and angry because I have worked 3 jobs for years to afford it . I ‘m angry because I was lied to ,and swindled, and taken advantage of when i trusted. I’m angry because I’ve gone through al l my savings, retirement to pay for my mortgage all this time.

    but i’m mostly angry because I have called over 32 places since June to find a way to help myself…and someone always gives me another number to contact…which always leads to a dead end…I’m angry that an attorney would dare to try to charge me 100,000 when they know how broke I am…..that’s just plain ‘raping’ me and my family. It’s obscene.

    But mostly i’m angry because there are obnoxious people like you out there who dont’ realize I’ ve tried everything to save my home….don’t ever assume anything……..you don’t know that this has become my 4th job in the past 5 months…

    I suppose I could always quit my 3 jobs, and go on welfare, and gov ‘t and state subsidies..so YOU can pay for me!!! That’s the best idea yet!!!!

    Lisa

    Comment by lisa ashton — November 23, 2007 @ 8:10 pm

28. :::I have contacted the fbI and the attorney general’s office, and they found that ‘predatory fraud’ has occurred here…::

    What are they doing about it, then?

    I really wasn’t trying to be an “obnoxious people” - I was just pointing out that this didn’t just happen TO you. You had to know that you couldn’t afford to pay a half million dollar mortgage on your salary, regardless of what any loan officer told you. The only way you could end up owing that amount after all these years, is if you kept cashing out every drop of equity. You’re not alone - millions of Americans have been doing it, and now face the same challenges.

    I don’t doubt that things have been tough, nor do I doubt that you work hard to support your kids. However, you need to own your part in this mess.

    Comment by Dawn — November 24, 2007 @ 2:54 am

29. I completely feel for Lisa, her situation absolutely stinks, but I also agree with Dawn. As an underwriter I would see the same people doing cash out refi’s over and over. At some point we would turn them down for multiple refi’s in a short period of time, for lack of benefit to the borrower. But I worked for a company that operated by a code of ethics, unfortunately, as Lisa has experienced, not many of our competitors operated in the same way. A payment increase of $1000 a month and $30000 in fees for $25000 cash in hand would not be a benefit by our standards. My former company also has a department of people committed to helping people avoid foreclosure.

    While this is not meant to kick a person while they are down, the moral of the story for everyone is to read all the documents, to ask questions and find out all the terms of the loan before closing the deal. The mortgage note spells out the rate and the terms as does the Truth In Lending statement. The hud details all the fees associated with the loan and should match the Good Faith Estimate. In fact there are several docs that would give enough info to raise some red flags if a borrower has any doubt about the loan. With refinance transactions on primary residences, almost every state in the US has rescission periods, a cooling off period where the borrower can take a copy of the docs home, review them in the privacy of their own home without the pressure of the closing. If the deal doesn’t make sense the borrower can then cancel the deal as long as the rescission period has not expired. Unfortunately by signing that 1003, the mortgage application, the borrower is acknowledging the info it contains including inflated income to be accurate. If it was a true “no doc” loan then no income would be input, no employer info either, nothing to verify. A stated income loan has income included but SHOULD reflect an accurate income figure, it just isn’t verified by supplying income documentation, the only thing verified is that the borrower is employed where they state they are. As an underwriter we are required to put the stated income to a reasonability test, but as an RN it would be easy to inflate that somewhat and still be believable as there is the potential to make a pretty good income. I’ve seen one application state that a janitor at a small local church made $8000 a month, seriously…the Lord will provide, huh?

    Second moral of the story, never, ever stop making your existing mortgage payment on time. That line of BS that making the payment will affect the settlement statement is a crock. The title company or closing agent always verifies the current pay off amount on the existing mortgage, taxes and any other liens on title and updates the HUD just before closing anyway. That is what they get paid to do. To ensure the new mortgage has first lien position they must verify there are no new liens and that all existing liens are adequately and fully paid off, otherwise they are liable. But if a consumer didn’t know this, as in Lisa’s case, it would be easy to be misled.

    As far as the interest rate, the borrower does pay a higher interest rate for either a no doc or a stated loan. These are usually offered to people with higher than average credit scores and excellent credit. 14% for early 2006 is pretty high even for stated or no doc. The buydown amount you describe is about 6.27% of the loan amount, the typical equation is paying 1% of the new loan amount to buy down the rate anywhere from 45-60 basis points in rate. So if your loan was $100,000 and your rate was 10%, if you paid $1000 to buy down the rate, the new rate would be 9.40% at a 60 basis points reduction. So without knowing the buydown rate, it seems like the intial rate was in the low 10’s. Without knowing your score at the time, it still seems like a slightly higher rate for a 90% LTV loan, even stated, for that time. Moot point now, though.

    I wish you luck, Lisa, I realize most of what has been said is the equivalent of shutting the barn door after the horse is gone. Hopefully your story will save another from the same misfortune.

    Comment by Former Underwriter — November 25, 2007 @ 12:19 am

30. thanks. First of all I never signed a mortgage agreement, nor did I ever get a truth and lending agreement. I never signed anything until I got to the closing , THEN I saw the amount I was to pay, and I immediately called the mortgage company from the closing. they assured me that they would refi me withiin 6 months, and to close or the last mortgage company would forclose on me becasue they had me NOT pay my last two payments, as it ‘would mess up my payoff’…

    so I was lied to all the way around…didnt’ sign anyting until the clsoing, and didnt’ even get any closing papers. I trusted I would be refied within 6 months and then they went bankrupt and left me stranded.

    I really don’t think ANY of this is my fault..I was lied to every step of the way..so what’s the difference if I was foreclosed on then by not paying at the closing…or now , either way, what does it matter?

    Lisa

    Comment by lisa ashton — November 26, 2007 @ 5:03 pm

31. Your comment about obnoxious people is WAY out of line. You must have refinanced and cashed out numerous times in the past. Seems like you’d be familiar with the protocol for refinancing and know about good faith estimates along with being current on your mortgage payments, despite what Aegis told you.

    You must know that a monthly payment of even 2900 when you take home 3600 is not affordable. I am sorry you used your 401k because that was one asset you could keep when or if you file bankruptcy. I am sorry they lied to you about refinancing in six months, but again you are not alone, most people heard the old “don’t worry, when the rate resets we will refi you and waive the prepay.” Unfortunately even if you had this in writing it is meaningless because credit conditions change. Perhaps you can short sell your home.

    Comment by By Their Fruits Shall You Know Them — November 28, 2007 @ 3:43 pm

32. Lisa,

    Sorry… long time no talk. Sensible people, such as myself (and victims like yourself) know a little too much about mortgage fraud…more so than these loan officers or underwriters…who have nothing better than to advise you “to basically suck it up because you are not the only victim”… Do not let any of these people in the industry get you upset…I understand you are angry and you are “CORRECT” you do have a right to be angry..it is easy for people in the industry to easily tell you take responsibility and “suck it up”. Also, it doesn’t surprise me that an attorney advised you of a 50% commission…arrogant bastards…that is why I am committed to provide legal research for you without any strings attached…I KNOW YOU WERE A VICTIM OF FRAUD!!!

    What is the status on the new Company that is servicing your loan? I will help you as much as I can…

    Comment by K Legal — November 30, 2007 @ 5:49 pm

33. You are right! There is fraud here. Extracting equity from your house in ever increasing amounts to where there is no hope of ever servicing that loan is fraud. Committing 80% of take home pay to mortgage payments when the standard is 30% is fraud. Who forced you to serial refi and cash out over these years? If you want to blame someone, you might start with the investment banks on wall street, they enabled all these so called lending standards. Unmfortunately, we will all end up paying for these irresponsible consumers.

    The End Of Consumer Credit As We Know It
    Peter Schiff
    In an article this week that examined the troubles brewing in Citigroup’s mortgage business, the Wall Street Journal focused on Natalie Brandon, a 51 year old married woman from Granada Hills, CA, who is currently unable to make the payments on her $625,000 adjustable rate home loan from Citigroup, despite the fact that the rate will not even reset higher until June of next year. Amazingly, the Journal reported that Mrs. Brandon bought the house in 1985 for just $105,000, but had chosen to refinance five times over the past seven years, borrowing more than $500,000 and spending every single penny. While this may be an extreme example of American profligacy, it is by no means unique. Unfortunately this type of behavior typifies everything that is wrong with the modern American economy.

    Had this homeowner behaved responsibly, as was typical for Americans of prior generations, her current monthly mortgage payments would likely be less than $600 and the remaining balance on her loan would be about $40,000. In eight more years she would have owned her home free and clear, and would likely be on track for early retirement. Instead, after 22 years of making mortgage payments, she is now $625,000 in debt. The article stated that she had recently tried to refinance into a 6%, forty year, fixed-rate mortgage, but it fell through. Even if she had qualified, she would have been obligated to make monthly mortgage payments of close to $4,000 until she was in her nineties.

    For years, Wall Street and the media have been singing the praises of the heroic American consumer. To that end Mrs. Brandon could be portrayed as Wonder Woman. She did her part to power our consumer driven economy by borrowing and spending to her heart’s content. Her last refinance even allowed her to buy a brand new Lexus. As long as she could find a greater fool willing to loan her more money, there was no limit to what she could buy. As it turned out, Citigroup was the greatest fool, left holding the bag on a $625,000 mortgage on a house now likely worth only half that amount.

    Is it any wonder that we have enjoyed such a vibrant consumer based economy when a working class couple with perhaps $60,000 per year of household income can borrow over $500,000 (tax free) and buy whatever they want with the money? As the bills come due and those who have been doing all of the lending finally realize they will never be repaid, this crazy consumption binge will finally come to an end.

    As the losses mount, the credit crunch will spread from mortgages to auto loans and to all forms of consumer lending. The days of Americans borrowing to consume are finally coming to a long over due end. Although it seems like science fiction to Americans raised on credit cards, within a few years most will only be able to buy those goods they can afford to pay for with cash.

    In the long run of course, this will be a very positive development. Borrowing to consume is a waste of savings and undermines legitimate economic growth. Money loaned to consumers is unavailable to finance capital investment. By squandering savings on consumption, a society undermines its future standard of living.

    When businesses borrow to make investments, those investments generate returns which enable the principal and interest to be repaid. When individuals borrow to consume, no investment is made and the loans can only be repaid out of reduced future consumption. As a result, business loans, especially when collateralized by real assets, are likely to be repaid, while consumer loans, collateralized by nothing but a promise to consume less in the future are much more likely to end in default. As lenders finally figure this out, consumer credit will dry up, and the American economy will enter a prolonged and severe recession. Unfortunately, an economy that lives by consumer credit will die by it as well. Hopefully a more viable economy will eventually rise in its place.

    Comment by By Their Fruits Shall You Know Them — December 1, 2007 @ 12:16 pm

34. Klegal, I’m not a loan officer or underwruiter - I’m a former fraud victim. As someone who has been there and done that, I can tell you that patting Lisa and patronizing her with “There there, you poor dear” will not help her. It certainly won’t prevent her from getting into this same mess again.

    Her house didn’t get upside down by fraud alone. She borrowed and spent herself into a place where she was ripe for the picking. Even her claim that they told her not to pay her mortgage payment rings hollow. What did she do with her mortgage payments those two months - go shopping? If she had a plan of action and held onto that money, she could have MADE those two payments and walked out on the fraudulent closing.

    Like I said, I’ve been where she is. She needs to own her mistakes so that she can protect herself. Telling her what a victim she is will only leave her homeless.

    Comment by Dawn — December 2, 2007 @ 9:35 am

35. K legal:

    You can’t help her, she is insolvent. She did it to herself, I am really tired of these faux ‘victim’ stories.

    Comment by By Their Fruits Shall You Know Them — December 2, 2007 @ 1:40 pm

36. you guys really are something. You don’t know my story at all..but yet you’re so willing to condemn. THose two monthly payments went to a college payment to keep my daughter in college while I was waitng for my refinance money to come through to pay the rest of her tuition/room and board. Yes, I am trying to help her through college.

    the only other time i refinanced was because the court MADE me in order to pay back my ex-husband ’s share of the home that he deserted me and my two children in . Once my daughter turned 18 I had to refinance or sell my home to pay him off…even though he owes me over $56,000 in back child support that the courts say he only has to repay me in $100.00 per month…

    So don’t think I put myself in this position other than to keep a roof over my childrens head while I worked 3 jobs to keep my home, not be homeless or on welfare, since their deadbeat dad got away with as much as he did…what ,? get a good lawyer to fight him…yeah, with what money???

    NIce …love your compassion at christmas…

    And Ralph..I’m done with this column. YOu said it would help. you said YOU would help..and so I signed over my story to you…guess I was taken THERE as well…

    well..i’m gone. YOu’re just one more piece of the puzzle that has ‘used me’ and not helped me like you said you would…shame on you. But I won’t stay around any more and listen and watch. I’d be embarrassed if I were you though. Saying you told my story to a newsperson and they cried was a nice touch..I actually believed you.

    Lisa

    Comment by lisa ashton — December 2, 2007 @ 3:43 pm

37. Ralph can’t help you. What did you imagine he would do to fix this?

    Comment by Dawn — December 2, 2007 @ 5:06 pm

38. I want to apologize to Ralph for my last comments. THe whole reason i came on this website and had my story was posted was with the sole intention of helping even one family or person be more aware, so they would NOT have to go through what we have gone through over the past year or so.

    Instead it’s turned into a free for all of negative accusations and comments towards me and my actions that have left me angry and hurt. It takes all of my strength on a daily basis to get up, do my three jobs, take care of my family, and then do it all over again and again and again. I can’t take any more added stress that this column is seeming to bring me. I take things too personally.

    so therefore I am saying goodbye. To those that have said kind, supportive and helpful things I am most grateful. You gave me many good suggestions, and for that I am very thankful. I hope my story and my vulnerability in telling it will have helped out even one person. THen I will feel it was all worth it.

    thanks again, and goodbye

    Lisa

    Comment by lisa ashton — December 2, 2007 @ 5:43 pm

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.