Green Tree Servicing No payment towards principle in 6 years, all interest Rapid City South Dakota
I noticed on a tax document I received from Green tree that in 2005 no money was directed towards the principle of the loan for that year. I called Green Tree and asked why that was and I got this big spill on a simple interest loan. I was also told not only was all my payments going to interest but I was still in the rears on interest; meaning I was not paying enough to even cover the interest.
I asked for a breakdown of all the payments I made and they agreed to send it. Upon receiving this form I was mortified! Not only were no principle payments were made in 2005 but also after 6 years of making payments to Green Tree in excess of $30,000 only the first 2 had principle payments. I had made a Grand Total of $25 toward owning my Home.
I realize most money of the first payments is for interest but not one penny towards the principle in over 5 years?
Johnnie
Sparta, Tennessee
U.S.A.
7 Updates & Rebuttals
Thomas
Anderson,South Carolina,
U.S.A.
Since you plan to look at your loan docs,
#8Consumer Suggestion
Tue, January 09, 2007
also go to Wal-Mart [or where ever] and buy a Texas Instruments Business Analyst "BAII Plus", about $35
Read the instructions and you should see how simple it is to calculate any loan.
Keys of interest:
N = number of periods (months) 30 Yr = 360
I/Y = Interest per Year as a %
PV = Present Value
(The beginning loan amount)
PMT = The payment
(Usually a minus number, as it reduces PV)
FV = Future Value
(Used for a balloon note. But a 30-Yr or 15-yr fixed standard mortgage should have FV = 0.0)
STO = Store
(STO I/Y to enter interest/yr.)
RCL = Recall
CPT = Complete
(STO-N, STO-I/Y, STO-PV; CPT-PMT to get the payment with STO-FV = 0.0)
Then you can calculate FOR YOURSELF what you now have, and then what you would have to pay/month for, say, a 15-yr and/or 30-yr standard mortgage.
Thomas
Anderson,South Carolina,
U.S.A.
Since you plan to look at your loan docs,
#8Consumer Suggestion
Tue, January 09, 2007
also go to Wal-Mart [or where ever] and buy a Texas Instruments Business Analyst "BAII Plus", about $35
Read the instructions and you should see how simple it is to calculate any loan.
Keys of interest:
N = number of periods (months) 30 Yr = 360
I/Y = Interest per Year as a %
PV = Present Value
(The beginning loan amount)
PMT = The payment
(Usually a minus number, as it reduces PV)
FV = Future Value
(Used for a balloon note. But a 30-Yr or 15-yr fixed standard mortgage should have FV = 0.0)
STO = Store
(STO I/Y to enter interest/yr.)
RCL = Recall
CPT = Complete
(STO-N, STO-I/Y, STO-PV; CPT-PMT to get the payment with STO-FV = 0.0)
Then you can calculate FOR YOURSELF what you now have, and then what you would have to pay/month for, say, a 15-yr and/or 30-yr standard mortgage.
Thomas
Anderson,South Carolina,
U.S.A.
Since you plan to look at your loan docs,
#8Consumer Suggestion
Tue, January 09, 2007
also go to Wal-Mart [or where ever] and buy a Texas Instruments Business Analyst "BAII Plus", about $35
Read the instructions and you should see how simple it is to calculate any loan.
Keys of interest:
N = number of periods (months) 30 Yr = 360
I/Y = Interest per Year as a %
PV = Present Value
(The beginning loan amount)
PMT = The payment
(Usually a minus number, as it reduces PV)
FV = Future Value
(Used for a balloon note. But a 30-Yr or 15-yr fixed standard mortgage should have FV = 0.0)
STO = Store
(STO I/Y to enter interest/yr.)
RCL = Recall
CPT = Complete
(STO-N, STO-I/Y, STO-PV; CPT-PMT to get the payment with STO-FV = 0.0)
Then you can calculate FOR YOURSELF what you now have, and then what you would have to pay/month for, say, a 15-yr and/or 30-yr standard mortgage.
Thomas
Anderson,South Carolina,
U.S.A.
Since you plan to look at your loan docs,
#8Consumer Suggestion
Tue, January 09, 2007
also go to Wal-Mart [or where ever] and buy a Texas Instruments Business Analyst "BAII Plus", about $35
Read the instructions and you should see how simple it is to calculate any loan.
Keys of interest:
N = number of periods (months) 30 Yr = 360
I/Y = Interest per Year as a %
PV = Present Value
(The beginning loan amount)
PMT = The payment
(Usually a minus number, as it reduces PV)
FV = Future Value
(Used for a balloon note. But a 30-Yr or 15-yr fixed standard mortgage should have FV = 0.0)
STO = Store
(STO I/Y to enter interest/yr.)
RCL = Recall
CPT = Complete
(STO-N, STO-I/Y, STO-PV; CPT-PMT to get the payment with STO-FV = 0.0)
Then you can calculate FOR YOURSELF what you now have, and then what you would have to pay/month for, say, a 15-yr and/or 30-yr standard mortgage.
Johnnie
Sparta,Tennessee,
U.S.A.
Type of loan
#8Author of original report
Tue, January 09, 2007
30 year fixed interest full Amortization loan
Johnnie
Sparta,Tennessee,
U.S.A.
Green Tree Servicing No payment towards principle in 6 years, all interest Rapid City South Dakota
#8Author of original report
Mon, January 08, 2007
Was told it was a Simple Interest Loan. I havent pulled the contract to check correct wording
Thomas
Anderson,South Carolina,
U.S.A.
What type of loan is described in your contract??
#8Consumer Comment
Mon, January 08, 2007
There are fixed-interest 15-yr, fixed-interest 30-yr, ARMs, etc. loans, and also interest-only loans with a balloon payment at their end, and so forth. I got one solicitation for a loan with about 1/2 the payment of the fixed loan we have now. The catch was that the payments would increase over time and after 30 years we would have paid A LOT MORE MONEY while the debt would still be there. But they only discussed the rosy first 5 years of payments. I had to figure the rest of the loan out for myself. Let the buyer beware!
So what type of loan IS described in your paperwork? Did you focus on getting a loan with a low, low payment and thereby wind up with an interest-only balloon-note loan?