EMC Mortgage Corporation Ripoff! Unfair collection practices, exhorbitant "extra" charges, they want your home! Irving Texas
Just wanted to vent and add my EMC nightmare to the list. EMC obtained my loan from Superior Bank. Unlike others here, I did not appear to have a problem with the transition. Approx 8 months into my loan I was involved in a serious accident, ended up with HUGE medical bills, and was unable to work for an extended period of time. My nightmare begins.
Insurance companies bickered in court about who had to pay my medical bills and work loss. I didnt care who did, as long as it wasn't me, after all, thats what I paid health insurance premiums for. I paid my mortgage out of savings for 6 months until they were exhausted, then fell 3 months behind. EMC initiated foreclosure. Court tug-of-war began. Thankfully I had a wonderful attorney. This went on for approx 2 years.
At a point shortly after the medical bill mess got straightened out in court, EMC called me yet again with collection efforts. I told them I was going to file reorginisation bankruptcy now that I had cash flow again and was able to make up the back payments, as I did not wish to lose my grandparents homestead.
A seemingly sympathetic woman told me that if I could afford it, I qualified for a "work out plan" where I was to pay $7500.00 via western union quick collect, sign a forebearance agreement they would fax to me, fax it back to them, then 100$ extra to my payment every month. Really? That easy? Sign me up!
I go to the bank, get the money, send it via quick collect, and call EMC to confirm it was gone. Their response? Oh. We made a mistake. You don't qualify at all. You need to come up with the $26,000+ you are in arrears or the foreclosure will proceed. Butbutbut...?
They returned the 7500$ it cost me almost 30$ to quick collect to them. I called my lawyer and asked "Is this even LEGAL?!? They faxed me the forebearance agreement, on their letterhead, from their fax, making it an offer. I sent money. That is the "consideration". I signed the agreement & faxed it back. Doesn't that make it a binding contract? It was THEIR offer in the first place." He contacts EMC's attorney, They agree to abide by their agreement. Ship back the $7500.00 at another 30$ charge.
Pay on the forebearance agreement for 12 months. Try to refinance out. Payoff on my 81,000 mortgage is now well over $105,000. But...how?!? Oh, arrearage, lawyers fees, interest and penalties. Butbutbut..I paid on time! And what happened to the 7500.00 I sent you at the beginning of this?!?
Call their loss mitigation department and request they modify my mortgage and bring it to current/off their "workout plan". Am declined, even though I've paid on time for over a year. They send out one of their own appraisers, which I agree to. He finds the value of the property to be far less than 105,000. *I* go to *them* and offer the origional 81K plus $13,000 extra for their expense, plus they don't have to foreclose or sherrifs sale or upkeep the property. "No Ma'am. We're not interested."
Even though my property was worth far less than what they said I owed, I was seriously injured through no fault of my own (and faxed them tons of medical reports to prove it), it was my grandparents home that had been in the family for generations AND I offered more than the origonal note to buy it back, they refused. They told me straight out that they wanted my property.
At that point I decided to fight back. It took 15 mortgage applications, but eventually a mortgage broker found a bank willing to refinance my mortgage because I kept every scrap of paper and approx 18 on time EMC Quick Collect Recepits. (EMC would not verify to potential lenders that I had been making my forebearance payments on time). I had to pay brokers fees, refinance fees, and points, on top of EMC's "Ransom Money" for my home.
In the end, I got to keep my home. Apparantly I'm in the minority. But between EMC's ransom fees, points, brokers fees etc it cost me almost $40,000 thanks to EMC's ruthless, heartless collection practices. Anyone who is unfortunate enough to get your mortgage transferred to EMC, I urge you to run run run, fast as you can.
Oh. And as far as credit reports? They reported me as being in foreclosure for years. I contacted all three bureaus, told them I had been in a workout agreement and paying on time, and asked them to note the files accordingly (workout agreement/paying on time rather than Foreclosure) Bureaus contacted EMC, who refused to change the information, because "technically, even when you're under a forebearance agreement and paying on time, your home is still in foreclosure".
It was like they were going out of their way to cause me damage or hurt me however they could. What a terrible way to live your life, don't these people have a concience?!?
If anyone is organising or interested in a class action lawsuit, after all they put me through, I am interested. Best of luck to anyone still unfortunate enough to be going through this process! Someone needs to stop these people.
Evie
Clarks Summit, Pennsylvania
U.S.A.
7 Updates & Rebuttals
Mark
Scranton,Pennsylvania,
U.S.A.
the last mortgage broker did ruin my credit trying to get me a loan
#8Consumer Comment
Mon, May 23, 2005
Thanks so much for your advice on this. Well the problem is I found out after this post is that the last mortgage broker did ruin my credit trying to get me a loan. I have to say big help he was. My score shot down 75 points since he tried every lender in the buisness. Well will be stugling with emc for another year, just hope we can stay in our house that long. Thanks again and I am happy to see someone get out of this mess.
Mark
Scranton,Pennsylvania,
U.S.A.
the last mortgage broker did ruin my credit trying to get me a loan
#8Consumer Comment
Mon, May 23, 2005
Thanks so much for your advice on this. Well the problem is I found out after this post is that the last mortgage broker did ruin my credit trying to get me a loan. I have to say big help he was. My score shot down 75 points since he tried every lender in the buisness. Well will be stugling with emc for another year, just hope we can stay in our house that long. Thanks again and I am happy to see someone get out of this mess.
Mark
Scranton,Pennsylvania,
U.S.A.
the last mortgage broker did ruin my credit trying to get me a loan
#8Consumer Comment
Mon, May 23, 2005
Thanks so much for your advice on this. Well the problem is I found out after this post is that the last mortgage broker did ruin my credit trying to get me a loan. I have to say big help he was. My score shot down 75 points since he tried every lender in the buisness. Well will be stugling with emc for another year, just hope we can stay in our house that long. Thanks again and I am happy to see someone get out of this mess.
Yvonne
Dalton,Pennsylvania,
U.S.A.
Explain your whole situation to them. DON'T let them run your credit unless you're fairly sure they can help you.
#8Consumer Comment
Fri, May 13, 2005
Hi Mark!
Ohhh do I feel for you! I'm not sure how to answer your post as I don't know how to get my email address to you according to site rules, and I really don't want to post a Mortgage Broker name here on the public forum. All I can suggest is look in the yellow pages for a broker that specalises in "bad credit" mortgages. Keep calling till you find one you feel comfortable with.
Explain your whole situation to them. DON'T let them run your credit unless you're fairly sure they can help you. When I refinanced out, my median (average) score was in the high 500's. Everything but my mortgage (or so they said) had been paid on time for 18(ish) months. EMC's workout plan wouldn't let me send checks, so I had 12+ months of right on time quick collect receipts. I had to fax and mail probably several hundred pages of documents. Thank goodness I'd kept them all. Many people would have just called it quits and moved on, but I was NOT losing my grandparents farm.
My best advice to you is to gather all your documentation (you're going to need it) And for you and anyone else dealing with EMC...every time you talk to them, keep a notepad by the phone. Document what time you started the call, ended it, who you talked to and what was said. You never know what might come in handy in the future. I had every scrap of paper, and in the end I needed most of it to get out of that mess.
I will say, Many thanks and much praise to New Century Mortgage Corporation. Yes, they are a "non-prime lender". However, they financed me out of this mess at a very reasonable (given the circumstances) 7.5% interest rate, post my payments right on time, and have an up-to-the-day website where you can check daily, by yourself, to make sure your payment is recieved and posted. I've been with them over a year now. Thank you so much New Century!
Mark
Scranton,Pennsylvania,
U.S.A.
Help I still have EMC and it is a nigtmare
#8Consumer Comment
Fri, May 13, 2005
I can relate to your issue with EMC. I still have EMC and it is a nigtmare. Last year they put an escrow for late taxes on my account and raised my payment to 250.00 a month. I contacted them because this is not resonable and they stated they would put me on a 3 year plan so my payment was raised only 100.00 dollars a month.
I said as you did sign me up. Well I made payments to them as agreed even did it over the phone with there collections dept. I get a letter a month later stating that I was past due three months. I contacted them and they stated the plan was never approved.
Never approved? so all the payments I made prior were not enough to cover the 250 increase. Well we struggled every dime we had to get up to par. Finally we thought yeah were ok. I get a bill stating I have over 1500 dollars in late charges because of their mistake. I tired to refinance but EMC would not admit to their mistake and told the lender I was over 3 months past due. Im still with them and it is a nightmare.
They ruined my credit enough not to be able to re-finance. What is the name of the lender you went through since I am from your area too? Was your creidt in good or bad shape when you refinanced? and might you be able to give me your attorney's name.Your answers would be appreciated in saving our home too.
Mark
Scranton,Pennsylvania,
U.S.A.
Help I still have EMC and it is a nigtmare
#8Consumer Comment
Fri, May 13, 2005
I can relate to your issue with EMC. I still have EMC and it is a nigtmare. Last year they put an escrow for late taxes on my account and raised my payment to 250.00 a month. I contacted them because this is not resonable and they stated they would put me on a 3 year plan so my payment was raised only 100.00 dollars a month.
I said as you did sign me up. Well I made payments to them as agreed even did it over the phone with there collections dept. I get a letter a month later stating that I was past due three months. I contacted them and they stated the plan was never approved.
Never approved? so all the payments I made prior were not enough to cover the 250 increase. Well we struggled every dime we had to get up to par. Finally we thought yeah were ok. I get a bill stating I have over 1500 dollars in late charges because of their mistake. I tired to refinance but EMC would not admit to their mistake and told the lender I was over 3 months past due. Im still with them and it is a nightmare.
They ruined my credit enough not to be able to re-finance. What is the name of the lender you went through since I am from your area too? Was your creidt in good or bad shape when you refinanced? and might you be able to give me your attorney's name.Your answers would be appreciated in saving our home too.
Mark
Scranton,Pennsylvania,
U.S.A.
Help I still have EMC and it is a nigtmare
#8Consumer Comment
Fri, May 13, 2005
I can relate to your issue with EMC. I still have EMC and it is a nigtmare. Last year they put an escrow for late taxes on my account and raised my payment to 250.00 a month. I contacted them because this is not resonable and they stated they would put me on a 3 year plan so my payment was raised only 100.00 dollars a month.
I said as you did sign me up. Well I made payments to them as agreed even did it over the phone with there collections dept. I get a letter a month later stating that I was past due three months. I contacted them and they stated the plan was never approved.
Never approved? so all the payments I made prior were not enough to cover the 250 increase. Well we struggled every dime we had to get up to par. Finally we thought yeah were ok. I get a bill stating I have over 1500 dollars in late charges because of their mistake. I tired to refinance but EMC would not admit to their mistake and told the lender I was over 3 months past due. Im still with them and it is a nightmare.
They ruined my credit enough not to be able to re-finance. What is the name of the lender you went through since I am from your area too? Was your creidt in good or bad shape when you refinanced? and might you be able to give me your attorney's name.Your answers would be appreciated in saving our home too.