Complaint Review: Fairbanks Capital Equicredit

This is my letter to the authorities in Atlanta, Georgia. Maybe, this will help someone.

Carl W. Lowery
1149 Martin Luther King Jr., Drive NW
Atlanta, GA 30314-2901
404-758-9077
carl18_@hotmail.com
_____________________________________________________

CONSUMER PREDATORY LENDING & FRAUD COMPLAINTS

August 11, 2002

Attn: Fair Housing HUB Director and
HUD Fair Housing Unit
Five Points Plaza
40 Marietta Street, NW,
Atlanta, GA 30303-9812

Andrea Foster, Director and
Southeast Region Federal Trade Commission
225 Peachtree St., NE, Suite 1500
Atlanta, GA 30303

Consumer Response Center and
Federal Trade Commission
600 Pennsylvania Ave. NW
Washington, DC 20500

Thurbert E. Baker and
Office of the Georgia Attorney General
40 Capitol Square SW
Atlanta, GA 30334

Attn: John S. Smith, III, Administrator
Consumer Affairs
Georgia Governor's Office
2 Martin Luther King, Jr. Drive, Suite 356
Atlanta, GA 30334

RE: NOTICE OF SALE UNDER POWER ALLEGEDLY DUE TO DEFAULT
Consumer/Borrower: Carl W. Lowery Loan Amount: $52,000
Loan #: 8785139273 Loan Date: October 21, 1999
Type Instrument: Deed to Secure Debt
Property Address: 1149 Martin Luther King Jr., Drive NW
Atlanta, GA 30314-2901


HUD/FTC/Georgia Attorney General/Georgia Governor
August 11, 2002
Page 2
(Re: Consumer: Carl W. Lowery, Loan #8785139273)



Dear Investigative Authorities:

As a consumer, I am contacting your governmental agencies in order to file consumer fraud complaints due to an undated Notice of Sale Under Power (Foreclosure), allegedly due to a default on my part concerning the above Deed to Secure Debt.

As I understand it, my initial lender was SouthStar Funding, L.L.C., however, SouthStar Funding, L.L.C. subsequently tendered an assignment to Equicredit. Thereafter, Equicredit, a now defunct mortgage lender assigned its' interest in my real property to Fairbanks Capital Corporation, and as I further understand it, pursuant to the Notice of Sale Under Power, my loan has been again assigned to The Bank of New York, Trust U/A dated December 1, 2001 (EQCC Trust 2001-2).

I have had recent communication from several entities concerning my Deed to Secure Debt as follows:

Date of
Communication Entity Type Communication

Undated Fairbanks Capital Corp. Notice of forwarding loan file
(July, 2002) P. O. Box 1900 local counsel for foreclosure
Hatboro, PA 19040 proceedings.

Undated Fairbanks Capital Corp. Letter stating there are other
(July, 2002) P. O. Box 65250 options besides foreclosure.
Salt Lake City, UT 84165

July 25, 2002 Fairbanks Capital Corp. Insurance expiration notice.
P. O. Box 7041
Pasadena, CA 91109

August 2, 2002 Dene S. Perusse, Attorney Letter alleging a July 5, 2002
HUDNALL, COHN, et al letter of intent to foreclose was
780 Johnson Ferry Rd. mailed to me. Enclosed is a
Suite 200 Notice of Sale Under Power
Atlanta, GA 30342 scheduled for September 3,
2002.


HUD/FTC/Georgia Attorney General/Georgia Governor
August 11, 2002
Page 3
(Re: Consumer: Carl W. Lowery, Loan #8785139273)


First of all I deny being in default on my Deed to Secure Debt or on my note. Though my loan has changed hands several times, I have continuously made my payments to which ever entity notified me of the new lender. In order to be certain that my loan payments were timely and properly received, I have made my cash payments by and through a local Western Union office, and I have receipts and statements from Western Union verifying the same.

My last 2-cash payments by and through Western Union were rejected/declined by Fairbanks Capital Corporation, on July 7, 2002, in the amount of $525.12 and on July 22, 2002, in the amount of $500.12. Fairbanks Capital Corporation never offered any reason for the rejections/declines.

Beginning as early as April, 2002, I have been in direct contact with Fairbanks Capital Corporation, advising them that I was in the process of refinancing my home loan, and I continued to make my cash payments by and through Western Union. However, in late June, 2002 or early July, 2002, my new lender advised me that there was a problem with my Fairbanks Capital Corporation loan, and my refinance loan was placed on inactive status until I could get things corrected with Fairbanks Capital Corporation. The next thing I knew, I am pending foreclosure, which is scheduled for September 3, 2002.

Besides my loan being assigned to so many different lenders, I have had a continuous problem with my lenders concerning liability insurance.

1. When my loan closing documents are reviewed, you will find that I signed an Escrow Waiver, and was responsible for my own insurance and taxes.
2. However, as early as March, 2001, when Equicredit was assigned my loan, I was forced purchase an annual policy, and forced to pay more than $400 in additional payments for liability insurance Equicredit placed on my home, however, the insurance did not protect my interest in the property.
3. Then in October, 2001, some 10-months after already paying more than $400 in forced insurance premiums for a policy Equicredit placed on my home, Equicredit sent to me a notice stating that effective August 22, 2001, the annual insurance policy had lapsed. Remember, just 6-months prior to this October, 2001 notice, I had just paid more than $400 for an annual policy Equicredit had placed on my home. This time I was required to pay $513 in annual premiums along with my monthly loan payments.
4. During all this time, though my loan has been drastically modified, as liability insurance was added to my monthly payment amount, my monthly payment was never changed. I continued to pay the $500.13 per month as always. Also, since the insurance was being deducted from my payments, Equicredit and Fairbanks Capital
HUD/FTC/Georgia Attorney General/Georgia Governor
August 11, 2002
Page 4
(Re: Consumer: Carl W. Lowery, Loan #8785139273)

Corporation were both charging me late charges and penalties, because neither company modified or adjusted my monthly payment amount when insurance was added to my loan.
5. Besides the Waiver of Escrow I executed, at the closing of my mortgage loan, I was also required to execute a document (that at the time I certainly did not understand) I believe is illegal. The document is in 3-parts, as shown below:

a. WAIVER OF BORROWER'S RIGHTS I believe that being
required to sign this section, waiving my future rights, is a violation of my Federal and State Constitutional rights to Due Process of The Law and Equal Protection of The Laws
b. CLOSING ATTORNEY'S AFFIDAVIT
c. FORECLOSURE CLOSING DISCLOSURE

I have requested a payment history on my loan, however, have never received any payment history or statement from either of the mortgage lenders, only this Notice of Sale Under Power.

In order to protect myself and my property, at this time I feel I have no other alternative but to file Chapter 13 Bankruptcy.

In view of the above information, I request a thorough investigation into the activities of these mortgage companies. I also request the Notice of Sale Under Power scheduled for September 3, 2002, be stopped due to the fact that the mortgage lenders have disallowed my Right To Cure Default (though I do not believe I am or was in default) by rejecting/declining my valid payments, and forcing liability insurance on me when I executed a Waiver of Escrow, and maintained my own insurance until I was forced to purchase for Equicredit.

Sincerely yours,

Carl W. Xxxxxx
Consumer and Borrower

carl
Atlanta, Georgia

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