HomEq Servicing balance is higher now than it was a year ago ripopff North Highlands California
I am trying to figure out why my mortage balance with HomEq is higher now than it was a year ago. The statement from November 2005 reported a balance of $111,713.34, the statement from July 2006 reported $111,996.06. While I was late once or twice, I always took care of the balance due plus the late fee(s). Also, any time -- the other 10 months of the year -- I made timely payments, they were always more than the balance due.
I was directed to the HomEq research dept., on which I have not yet followed up, but it will be done and I will update when I get an answer. When they come back with an answer, is there a 3rd-party firm that can check HomEq's veracity/truthfulness?
Also: my 2-year ARM with HomEq matured in March 2006 and, while I understand the rate was supposed to go up, it went up significantly. Shortly after the ARM matured, we received a letter stating that our credit score had deteriorated to the point that our % rate would be adjusted to reflect that. I have been pursuing a refi with Cornerstone Mortgage and the rep there told me what my wife's credit score is currently (it's her name on the mortgage) ... and it is relatively unchanged. If anything, it's a few points higher!
I conducted a search on Yahoo! for HomEq and came across the rip-off report. I'm glad I did because the amount of our increase (ARM maturity + credit score increase) this year seemed excessive. After seeing the volume of complaints on this site, I am becoming more convinced that it was indeed excessive and that HomEq may be up to something sinister.
Brian
Spring, Texas
U.S.A.
1 Updates & Rebuttals
Carrie
Asheboro,North Carolina,
U.S.A.
Possible reasons...
#2Consumer Suggestion
Sun, November 26, 2006
While I do not have any personal knowledge of your situation, I have a few reasons that could have resulted in the increase. The most likely reason is that you have a daily simple interest loan. What this means is that you accrue additional interest each time you pay outside of a 30 day cycle. This has nothing to do with the due date, but rather when you pay. For instance, if you are due on the 1st, but consistently pay on the 19th or every month, you are not paying additional interest. If you pay on the 1st one month, the 10th the next, the 20th the next, etc. you will add quite a bit in interest.
Just an FYI, most mortgage loans do not decrease by a large sum during the first few years. If you have a 30 year, $120,000 mortgage, in most cases you will pay very little of the principal for the first 5-6 years. This time is spent paying the interest.