fifth third bank and Fannie mae Gov mtg loans fannie mae 5th 3rd bank Gov rip off! Muskegon, Michigan
we have a custom built home since 1998. we owe 247k today. two years ago it appraised at 380K. this is when we had to refinance from an ARM mortgage that was at 4.8%. Now we are at 6.8%.
we have never been late and never missed a payment. if we ever want to pay off our mortgage we must refinance at a lower rate and implement bi weekly payments which we are willing to do.
our loan is a gov fannie mae loan thru fifth third bank. you hear that the banks are not loaning money back and they are right but the feds are no better. they distroyed the economy bringing the value of our homes and businesses down while feeding the greedy and ruthless financial institutions. you cannot refinance anything because the values of property's have dropped. you cannot borrow money to continue operating a business because the banks who we unwillingly gave our money to bail them out, are not willing to give any back. The feds blame the banks but look, they are no better. Now that they destroyed our economy and values have dropped they will allow us to refinance our home if we pay them an extra 7% on top of the closing costs. In my case this is $10,000.00.
They are taking advantage of a bad situation. If we the people did this it would be illegal. When there is a tragidy like a hurricane and certain people over charge for services because people don't have any choice, its illegal. What's the difference here?
There is none. those who make the rules can break them and twist them for their own advantage at our expense.
we were denied a refinance loan with 5th 3rd bank they said because the loan to value was too low. Their appraiser said that today our home weas worth about 240K. we were only 6k short of meeting the criteria. If my home had dropped by almost 40% my property taxes sure don't reflect it. After being denined a new mortgage i called the bank because i wanted to challange the appraisal and was willing to pay for another one. after about 2 weeks i finally got a return call indicating that we were approved using the last application and the last appraisal and all we have to do is pay an additional 7,000.00 on top of the 3,000.00 in closing costs. The bank blamed the feds (fannie mae) for this one. funny, they called me the very same day that this new rule went into effect. they waited until they could bleed us for more money then would do it. This is no mistake! It's plane and simple another rip off!
its no wonder why this country is in shambles. whoever is telling us that things are getting better, that is simply BS. desperate homeowners good luck. the sharks are circling and looking for anyway to take what they can. just try and get a loan today. Its near impossible for most. Small businesses are in big trouble too. there is no money to work with. The banks don't need to make any money when our Gov will simply take it from you and I and give it to them without any strings or accountabliltiy. I for one have had enough!
it is time for those that we put into office to stand up and come together for the sake of the people, "we the people" not for the sake of their own personal interest.
Where else can one trun for help? Do we just walk away from the home we built. Do we just close the business we built? The "american dream" is turning into a nightmere.
good luck people. May God help us all.
1 Updates & Rebuttals
Jim
Anaheim,California,
U.S.A.
So Why Blame The Bank??
#2
Sat, August 29, 2009
Your complaint should be against Fannie Mae because they failed to provide any sort of backing to the garbage ARM mortgages (of which yours is one). Money is not free any longer - certainly nothing like it used to be. Someone in a financial advisory capacity should have told you to take out a fixed loan back then and if you could not afford the fixed mortgage, then you should never have built the home....
In addition, you were not $6K from meeting the criteria; banks want people who have some equity in the home before they will issue a loan; with a home at $240K, you would have needed equity of at least $24K (maybe more), which means you would have qualified for a mortgage of $216K - so you really missed by $31K.
If there is a hurricane - to follow your example - the governor of the state declares the affected area a disaster area. Assuming the home is insured against hurricanes (not all policies are), the owner can rebuild coupled with low interest loans provided by the government under the disaster declaration.
In the end, your home will not return to the value of $380K for many, many years and it's time to deal with that fact. You can always appeal the P-Tax valuation, but that will take some time and given where we are in the year, you may be too late to deal with it this year.
You can try and attorney and see if you qualify for a mortgage reduction, but it may not be worth it because (1) lots of rip off artists, and (2) you may not get it reduced sufficiently to make any difference. It's not likely money will be available soon either; the commercial mortgage crisis is coming soon and whatever money is available now will be eaten up by that in a couple of years....best of luck to you.