Homecomings Financial, LLC Deceptive loan practices Dallas Texas
I have been attempting a loan modification with Homecomings since September of 2007. I submitted the application after Homecomings raised the interest rate on my loan by 40% at a time when the prime rate was falling steadily. After filing an application to modify twice (Homecomings lost the first application), in November 2007 I was told my property had been appraised and that I should check back in 5 days for a decision on my application.
I called back in 5 days and was told that there was no way a decision would be made on a loan modification as early as 5 days after an appraisal had been completed. I was instructed to call be in 10 days. I did so. And, to make a really long story short, I continued to call be for status and was told various things from "Your modification has been approved" to "You make too much money to qualify for a loan modification."
Every time I called Homecomings I was disconnected or hung up on while waiting to be transferred. I have spent a minimum of 30 hours on the loan modification process, to no avail. There doesn't seem to be anyone at Homecomings who monitors loan modification applications. I just submitted another application at the suggestion of a Homecomings representative. I am convinced that Homecomings has no interest in modifying the terms of any loan and therefore do not expect a reply to my application.
I am particularly struck by the fact that Homecomings brags about its contribution to Habitat for the Humanities! If Homecomings wants to help people obtain housing, it might consider helping homeowners who need a little consideration to stay in their homes!!!
Homecomings is the preverbial "wolf in lamb's clothing" when it comes to its business practices. Someone should do something to force lenders like Homecomings to disclose interest rate increase practices in a manner that is understandable!
Laura
Kenosha, Wisconsin
U.S.A.
1 Updates & Rebuttals
Friendly Help
Anderson,South Carolina,
U.S.A.
Mortgages with changing interest rates are bad ideas for house buyers.
#2Consumer Comment
Wed, July 30, 2008
Usually interest rate changes are spelled out with terms like ''the interest rate will be adjusted once every year'' or ''the interest rate will be adjusted once every two years'' .
Then they will include something like the interest rate can be changed 1% point each time up to a maximum increase of 6% points. A 40% increase could mean you had a 5% teaser rate that is now 7%. Or you had an initial rate of 7% and now you pay 9.8%.
But the biggest giveaway is when the mortgage is described as being an ARM, ''Adjustible Rate Mortgage''. These supposedly let you buy more house, but usually it will be more house than you should buy. Then you get into trouble when you get Strong-ARM-ed.
Solution: Next time get a FIXED RATE MORTGAGE. Then you will know what you will pay. But be sure you read it carefully and get all the trusted assistance you need to understand what you are agreeing to.