- Report: #269106
Complaint Review: Aurora Loan Services Lehman Brothers - Littleton Colorado
-
Author Confirmed
Why?
Aurora Loan Services Lehman Brothers
10350 Park Meadows Drive Littleton, 80124 Colorado, U.S.A.
Phone:
720-945-3000
Web:
N/A
Categories:
Business Rating:
(0)
Tell us has your experience with this business or person been good?
Aurora Loan Services, Lehman Brothers TIL and RESA violation, Rip Off, Foreclosure, Fraud, Deceptive Practices Littleton Colorado
I will try and keep this short...
I have been layed off twice in the last 3 years. The first time I missed one house payment and then paid a lump sum to catch up. The second time I was unemployed for 8 months.
In February I made arrangements with a rep at Aurora Loans Services (ALS) to bring in a cashiers check for $6517.35 to bring my loan current. The rep stated that I had to bring my loan current in order to have a modification done to my loan. (The rep Chris made it sound that if I did not pay the $6500 they would not help me) On Feb. 23rd 2007 I hand delivered a cashier check and loan modification package to the ALS corporate campus as directed.
Approximately 3 week later I receive a call from an ALS rep in Nebraska telling me that they had lost my cashiers check and asking if I could get another one for them. I told the rep that if they would be willing to pay the 2% surety bond I could get them a check immediately. ALS did not want to pay the fee and decided to wait the 3 months to have it issued for free. I asked if this would impact my modification application and I was told by the rep that my account would be put on hold until the 3 months was over and then they would proceed with the modification.
I was also told that since the mistake was ALS fault no collection actions would be taken and that no marks would be placed against my credit during this period. The reps name was Charissa or Clarissa she was hard to understand on the phone when saying her name anyway I have her direct phone number so I could get hold of her for follow-up.
3 months goes by and I eventually am able to have a reissue of the cashiers check issued and I mail it to ALS. Right after I mail the cashier check and it is received by ALS I called to follow up on my modification request and the rep in Nebraska tells me that they have no record of my modification package. I go through the long draw out process of explaining what has been happening (seems the reps at ALS do not read the notes in a file either when you call or they call you and you have to go through this process every time).
After explaining what has happened I am given a FAX number and asked to resend the package. I resend the package and get a FAX confirmation that all pages received. I call back about 3 weeks later to check on the status and once again no record of my package being received. The rep tells me that they are receiving 3-4000 faxes a day and sometime they get lost. I refax and call the next day to verify. This time they have received my information.
Another month or so goes by and I have heard nothing so I call. The rep on the phone tells me that they need updated pay stub information that they did not receive this in the original package. I refax this information and call and verify that they have received it. More time goes by and I then receive a letter telling me that my account has been turned over for foreclosure. I try to call ALS and I am told they cannot help me as I am in foreclosure.
With the help of a local organization I am able to get someone at ALS to tell us what the delinquency is and why I have been sent to foreclosure. Your going to love this "They turned this over to foreclosure because they never received a copy of my most recent pay stubs" the same pay stubs I sent and confirmed receipt of. Talk about gross negligence and incompetence.
Now since this has all happened I have taken multiple actions.
1. I have sent a letter to the Legal firm handling the foreclosure, ALS and my builder asking for a cease and desist on the foreclosure due to major construction defects on my home and asking for protection under Magnusson-Moss and 16 C.F.R. This is another compliant against KB Homes and major foundation defects that I have been fighting for 3 years and if I am going to loose my home I am not willing to keep fighting for something that will not be mine to fight for, nor am I willing to accept the financial impact of a product that does not meet the quality of the express warranty. Because the home has these defects I cannot sell the home to meet my obligations and as such I am denied my rights and remedies and forced to except foreclosure as my only option.
2. I have reviewed my closing documents and found the following major errors and fraud. I did not catch these items at closing since we were rushed and almost did not close do to loan docs being late.
a. Yield Spread Premium not accounted for in the finance charges.
b. My initial interest rate does not match the index + margin charged rate is listed as 5.705% with an index of 1.468 and a margin of 4.08 this should give a rate of 5.548% an over charge of 0.157%.
c. A purchase of .75 discount points without a subsequent reduction in either rate or margin.
d. various fees and charges are well over the accepted norm.
3. I am drafting a letter stating their is no default on this loan as ALS accepted an irregular payment ($6517.35 cashiers check for partial payment cashed in June/July which did not bring the loan current) and with such acceptance has agreed to a waiver of strict compliance of loan documents. This is supported by many, many court precedents the following list is just what is on the books in Illinois.
(There is a long line of real estate contract cases holding that forfeiture will be waived unless there has been a notice of intention to require strict compliance. Allabastro v. Wheaton National Bank, 77 Ill.App.3d 359, 395 N.E.2d 1212 (2d Dist. 1979); Lang v. Parks, 19 Ill.2d 223, 166 N.E.2d 10 (1960); Kingsley v. Roeder, 2 Ill.2d 131, 117 N.E.2d 82 (1954); Clevinger v. Ross, 109 Ill. 349 (1884); Heeren v. Smith, 276 Ill.App. 438 (4th Dist. 1934); Donovan v. Murphy, 217 Ill.App. 31 (1st Dist. 1920). Notice requires service of the defaulting party with a definite, written notice of intention to require strict compliance with the contract in the future. Kingsley v. Roeder, supra; Lang v. Parks, supra. Notice is required even when the contract contains a "time is of the essence" provision. Donovan v. Murphy, supra.)
I will be filing with ALS for review and with my state district attorney in the consumer fraud division.
The more I look and the more I interact with ALS the more I am convinced that they are guilty of deceptive lending, predatory lending and out right fraud. Mistakes are one thing, everyone makes them and for the most part you admit to them, fix them and go on, but with ALS this looks like institutional lying and that the excuse of "I made a Mistake" or "I Lost your documents" has been turned into company policy as a means of generating fees or forcing foreclosure.
I would be willing to speak with an attorney or others in a regulatory position and share my documentation and information for either a class action or other actions to stop this illegal activity. I will also try and answer inquiries from others faced with similar situations. I will also answer questions about KB Homes.
James
Erie, Colorado
U.S.A.
Click here to read other Rip Off Reports on Aurora Loan Service
I have been layed off twice in the last 3 years. The first time I missed one house payment and then paid a lump sum to catch up. The second time I was unemployed for 8 months.
In February I made arrangements with a rep at Aurora Loans Services (ALS) to bring in a cashiers check for $6517.35 to bring my loan current. The rep stated that I had to bring my loan current in order to have a modification done to my loan. (The rep Chris made it sound that if I did not pay the $6500 they would not help me) On Feb. 23rd 2007 I hand delivered a cashier check and loan modification package to the ALS corporate campus as directed.
Approximately 3 week later I receive a call from an ALS rep in Nebraska telling me that they had lost my cashiers check and asking if I could get another one for them. I told the rep that if they would be willing to pay the 2% surety bond I could get them a check immediately. ALS did not want to pay the fee and decided to wait the 3 months to have it issued for free. I asked if this would impact my modification application and I was told by the rep that my account would be put on hold until the 3 months was over and then they would proceed with the modification.
I was also told that since the mistake was ALS fault no collection actions would be taken and that no marks would be placed against my credit during this period. The reps name was Charissa or Clarissa she was hard to understand on the phone when saying her name anyway I have her direct phone number so I could get hold of her for follow-up.
3 months goes by and I eventually am able to have a reissue of the cashiers check issued and I mail it to ALS. Right after I mail the cashier check and it is received by ALS I called to follow up on my modification request and the rep in Nebraska tells me that they have no record of my modification package. I go through the long draw out process of explaining what has been happening (seems the reps at ALS do not read the notes in a file either when you call or they call you and you have to go through this process every time).
After explaining what has happened I am given a FAX number and asked to resend the package. I resend the package and get a FAX confirmation that all pages received. I call back about 3 weeks later to check on the status and once again no record of my package being received. The rep tells me that they are receiving 3-4000 faxes a day and sometime they get lost. I refax and call the next day to verify. This time they have received my information.
Another month or so goes by and I have heard nothing so I call. The rep on the phone tells me that they need updated pay stub information that they did not receive this in the original package. I refax this information and call and verify that they have received it. More time goes by and I then receive a letter telling me that my account has been turned over for foreclosure. I try to call ALS and I am told they cannot help me as I am in foreclosure.
With the help of a local organization I am able to get someone at ALS to tell us what the delinquency is and why I have been sent to foreclosure. Your going to love this "They turned this over to foreclosure because they never received a copy of my most recent pay stubs" the same pay stubs I sent and confirmed receipt of. Talk about gross negligence and incompetence.
Now since this has all happened I have taken multiple actions.
1. I have sent a letter to the Legal firm handling the foreclosure, ALS and my builder asking for a cease and desist on the foreclosure due to major construction defects on my home and asking for protection under Magnusson-Moss and 16 C.F.R. This is another compliant against KB Homes and major foundation defects that I have been fighting for 3 years and if I am going to loose my home I am not willing to keep fighting for something that will not be mine to fight for, nor am I willing to accept the financial impact of a product that does not meet the quality of the express warranty. Because the home has these defects I cannot sell the home to meet my obligations and as such I am denied my rights and remedies and forced to except foreclosure as my only option.
2. I have reviewed my closing documents and found the following major errors and fraud. I did not catch these items at closing since we were rushed and almost did not close do to loan docs being late.
a. Yield Spread Premium not accounted for in the finance charges.
b. My initial interest rate does not match the index + margin charged rate is listed as 5.705% with an index of 1.468 and a margin of 4.08 this should give a rate of 5.548% an over charge of 0.157%.
c. A purchase of .75 discount points without a subsequent reduction in either rate or margin.
d. various fees and charges are well over the accepted norm.
3. I am drafting a letter stating their is no default on this loan as ALS accepted an irregular payment ($6517.35 cashiers check for partial payment cashed in June/July which did not bring the loan current) and with such acceptance has agreed to a waiver of strict compliance of loan documents. This is supported by many, many court precedents the following list is just what is on the books in Illinois.
(There is a long line of real estate contract cases holding that forfeiture will be waived unless there has been a notice of intention to require strict compliance. Allabastro v. Wheaton National Bank, 77 Ill.App.3d 359, 395 N.E.2d 1212 (2d Dist. 1979); Lang v. Parks, 19 Ill.2d 223, 166 N.E.2d 10 (1960); Kingsley v. Roeder, 2 Ill.2d 131, 117 N.E.2d 82 (1954); Clevinger v. Ross, 109 Ill. 349 (1884); Heeren v. Smith, 276 Ill.App. 438 (4th Dist. 1934); Donovan v. Murphy, 217 Ill.App. 31 (1st Dist. 1920). Notice requires service of the defaulting party with a definite, written notice of intention to require strict compliance with the contract in the future. Kingsley v. Roeder, supra; Lang v. Parks, supra. Notice is required even when the contract contains a "time is of the essence" provision. Donovan v. Murphy, supra.)
I will be filing with ALS for review and with my state district attorney in the consumer fraud division.
The more I look and the more I interact with ALS the more I am convinced that they are guilty of deceptive lending, predatory lending and out right fraud. Mistakes are one thing, everyone makes them and for the most part you admit to them, fix them and go on, but with ALS this looks like institutional lying and that the excuse of "I made a Mistake" or "I Lost your documents" has been turned into company policy as a means of generating fees or forcing foreclosure.
I would be willing to speak with an attorney or others in a regulatory position and share my documentation and information for either a class action or other actions to stop this illegal activity. I will also try and answer inquiries from others faced with similar situations. I will also answer questions about KB Homes.
James
Erie, Colorado
U.S.A.
Click here to read other Rip Off Reports on Aurora Loan Service
