Complaint Review: Fairbanks Capital And Loan Servicing Center

June 24, 2003
Charles Johns
State of Florida Department of Banking and Finance
Area Financial Manager
Department of Financial Services
2000 Main St. Suite 802
Fort Myers, Florida 33901
Dear Sir:
In September 2002, we were set to close on a refinance with GMAC Mortgage. After being approved, and the day before closing, the title company informed us that Fairbanks Capital had not recorded the Assignment of Lien with our county. In order for us, the consumer, to obtain title insurance, and close on our refinance, Fairbanks would need to record the lien.

I called Fairbanks no less than 29 times, in a desperate attempt to get someone at Fairbanks to understand my dilemma. They insisted that all they could do: is order research. Six weeks later, the research concluded that they did not record the lien, nor did they plan to record the lien with the county, until we closed, and they received the full balance. We continued making calls to Fairbanks, pleading with them to record the lien. To no avail, our Title Company, and Mortgage company made conference calls to Fairbanks to get this issue resolved. Fairbanks absolutely refused.

Their consistent reply was: order research. Two months passed, and we were still unable to obtain title insurance. Prior to September (our closing date) we were never 30 days late on our payments to Fairbanks. We made these payments because we had signed a legal document (mortgage) indicating we would do so. We expect in return the mortgage company (Fairbanks), be in the position to provide us with the legal documentation of lien, in the event we choose to sell our home, or refinance.

Fairbanks did not hold up to their end of the agreement. We were forced to stop payments to Fairbanks in an effort to get our lien recorded, so that we could obtain title insurance. Once payments stopped, Fairbanks contacted us to inquire why. I told them there would be no more payments to Fairbanks, until they recorded the lien. Fairbanks immediately had a manager call me, and within three weeks, our lien was recorded with the Lee County. Fairbanks agreed not to tarnish my credit report, and not charge me late fees during the months that it took to resolve this lien issue. I have attached documentation (invoices) verifying Fairbanks removing late fees during this time period.

However, Rose, at 904.722.7555 instructed us that it would do us no good to remove the late remarks from our credit reports until the payments, or payoff was received, because at midnight of every night, the computer system would automatically, re-instate the late remarks. So, after we made the payments, or closed, and paid off the loan, she would correct the credit reports. Fairbanks has not corrected the credit reports. In fact, they now refuse to acknowledge the arrangement, and their derogatory remarks have prohibited us from obtaining new refinance options, since our original refinance approval terms had expired, prior to Fairbanks correcting the lien issue.

We have never been able to refinance, and are still with Fairbanks. Fairbanks contends they have the right to damage our credit for withholding payments while they got their act together, and recorded the lien. We are not asking Fairbanks to reimburse us for the costs they incurred us due to the original interest rate, and the GMAC interest rate ($511.65 per month x 10 months = $5,116.50). We request that Fairbanks remove the derogatory /late remarks on our credit reports during the months this issue was being resolved. That is Sept, Oct, Nov, and Dec 2002.

The documentation verifies that Fairbanks was removing late fees during this time period, even though they still had not received payment! Why would they waive late fees/money, if they were not intending to resolve this issue that prohibited us, the consumer, from obtaining title insurance?

Certainly, Fairbanks is not suggesting: they were willing to refuse the money/late fees; yet preferred to tarnish the credit? If they intended to tarnish the credit, they certainly would have continued to charge the late fees? I have also included documentation that verifies that GMAC not only approved us for our new, much lower interest rate, but they were unaware we never closed, and begin sending us invoices for our new mortgage for four months!

They also, placed the new loan on our credit reports, dramatically increasing our income-to-debt ratio that again tarnished our credit. They even paid our insurance and property taxes, under the assumption that Fairbanks had handled the lien issue correctly.

In conclusion, this Assignment of Lien issue has ruined our credit, and continues to incur us $511.65 additional monies every month. We also lost the monies we paid for our appraisal, and application fees for our refinance. We have yet to mention the sleepless nights, undue stress, and tension between my spouse and I that this unbelievable nightmare has caused our family, and quality of life. Refinancing is a stressful event to begin with; imagine being in our situation!
Sincerely,

CC:

Fairbanks Capital
Loan Servicing Center
Florida State Department of Banking and Finance
Utah Better Business Bureau
Florida Better Business Bureau
Federal Govt. Consumer Affairs Department

Brian
Fort Myers, Florida
U.S.A.

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