Rick
Cedar Creek,#2Consumer Suggestion
Wed, July 23, 2003
Cort, That was a GREAT informative post. When I applied for my mortgage,1997, I was "sub-prime". I finally found a lender and got an ARM at 12.49% for 80% of the value of the house and another ARM at 12.94 for 10% of the value of the house. My payments were around $1300 a month and this didn't include taxes or insurance, which I had to pay myself. On top of this I had 2 car loans totaling about $28,000 and $5000 in credit card debt, I only had one credit card, no one else would give me any. I guess I was a prime candidate to take a fall, I had bitten off more than I could chew. I started falling behind. Late payments just s****.. To make a very long story short. Today I own my house free & clear ($138,000 value). I have 3 vehicles, a 10 year old SUV (paid for), a 13 year old pick up (paid for) and a 2000 SUV ($12,000 owed)and $6000 in credit cards. When I drive my 10 year old paid for Pathfinder to work, 225k on odometer, I laugh when I pass these people driving their new big boat at $500+ a month. How did I do this? I busted my butt and put my pride and vanity aside. I used to buy a new vehicle every other year. I was financing upside down vehicles so I could look important driving new vehicles all the time. We quit eating out 3 or 4 times a week. We quit buying things just because we wanted them, not needed them. Today I'm still working on getting my credit cleared up. The only way to clean up your credit is TIME and responsible spending. But it can be done. The other thing I've learned though is there really are predatory lenders out there that actually do the things I've been reading here, lost payments, extra fees, ECT..... I've learned to be a PIT BULL when I know I'm right. Bite in and hang on until you become so much of a thorn in their side they start watching how they do business with you. Through my mortgage being sold many times I've dealt with several mortgage companies. I've had one send me money for an emergency room visit when they threatened to foreclose on my house and my wife's BP spiked and she got an uncontrolable nose bleed. Then there was the mortgage company in Georgia that the regional manager told me he had been assigned to "make me go away" because I had complained to so many agencies about things they were doing to me that I was making THEIR lives miserable because they had to reply to each of the agencies, goverment and consumer, I complained to.
Cort
Portland,#3Consumer Comment
Fri, July 18, 2003
Up front and center, I work for a subprime wholesaler (but not servicer) of mortgage loans. I sell these products to your mortgage brokers, and I've seen and analyzed thousands upon thousands of credit reports to determine lender risk. To hear Hubert's take on it, I must essentially be a Neo-n**i racist if you believe the ignorant garbage that was posted. Here's a little education about credit reports -- you seem to feel you were prevented from getting it way back 200 years or so by our government, so I'll do my part to give a freebie and give back to your cause. Your credit has absolutely NOTHING to do with the color of your skin. Or your religion. Or your gender. Or your sexual preference. Or...well, I think that's clear now. What it IS impacted by is a combination of your own personal financial responsibility and the common sense to not overextend yourself and put your image before your wallet. I absolutely understand that some people's credit is damaged by unexpected medical expenses, divorce, death of the primary earner in the family -- situations that NOBODY plans for. The days when I'm able to get a loan finished for a woman in an abusive relationship with a mentally handicapped child and an alcoholic violent partner that allows that woman to MOVE OUT of that situation are the best days have ever had. And I've DONE those loans, even for borrowers with credit scores in the low 500 range. Guess what -- they were CAUCASIAN! Wonder what form of discrimination there was toward a woman of God who works as a nurse to support her handicapped child and has saved every last penny to get herself out of the situation -- paying bills every other month when she had to, etc. Who screwed up her credit? Was it The Man keeping her down? Hell no. She had some hard knocks, and was working to get herself and her child into a better life. I'm glad I was able to help her get there. Let me point out the other side of the coin though -- I've had countless borrowers who had half a dozen maxed out credit cards, countless other credit tradelines, but still had a chance to qualify for a loan and stay within their allowable debt to income ratios. The loan process begins, you get close to closing, and all of a sudden -- nitwit has a new account for $750 a month from the local Lexus dealership. All of a sudden they don't qualify for a loan any more -- obligations to income ratio just went through the roof. Sound like an idiot? Or just someone who wasn't "educated" about the loan process? I always hope they got the big Lexus/BMW/Mercedes SUV with the fold down seats -- they're going to need somewhere to sleep now. Subprime isn't just bad credit either -- it's also for borrowers who need higher debt to income ratios -- banks and conforming lenders are much lower. It's also a great option for those people who don't have 10-20% to put down on their purchase -- I do 100% loans all day long for people with excellent, "A" credit that just need a little more money than they have saved to get into the house of their dreams. If "subprime" bothers you, call it "non-conforming" like we do -- it doesn't imply anything negative about you the borrower, just that your loan needs don't fit the high requirements of most banks and other conforming lenders. Get educated about your credit. What will make it lower? -- High balance - credit limit ratios are a big one (the credit card is maxed out.) -- late payments - the bigger the account, the more it will impact your credit if you have late payments. ALWAYS, ALWAYS pay your mortgage on time if nothing else. And don't EVER let an acount go 90 days late of more -- you'll destroy not only your credit, but also the loan options that will be available should your credit score not take too much of a beating. -- Open but unused accounts -- if you're not using them, CLOSE THEM! Do yourself a favor. Pay the $15-$25 you'll probably have to pay to get a copy of your three-bureau credit report, which is what lenders look at to determine your ability to pay a loan. Make sure it's accurate -- too many people have no idea that someone has stolen a credit card they thought was gone and has been having a ball charging it up and letting you get the bill (probably at your previous billing address) while the late paymetns show up on your credit as 30 days, 60 days, 90 days, 120 days, and then most likely a collection. Double check to make sure you don't have unknown collections/judgments/tax liens too -- and if you have them, pay them immediately if you can and then dispute them. That's all the education I have time for now, but there's some great tips here from someone who sees every day what can bring your credit score down and your loan interest rate up. Be aware, be responsible, and be educated about your credit -- no matter what color you are.
Hubert
Onalaska,#4Consumer Comment
Mon, July 14, 2003
The Social Security Administration was formed for a good reason, however social security numbers are being used illegally. We are branded just like the Jews during WWII. In this country, we give the very rich very low interest, the middle-income higher interest, and the poor very high interest. This is to guarantee that the less you have the less you will have. If we all had 4.75% mortgages, I am certain we could all make the payment. If companies like Fairbanks were not ripping us off, we could all make the payment. The government controls interest rates, why dont they just dictate to the banks that they can charge two (2) points over prime and no more. Banks would still make money, and we would all be better off. A sub-prime credit rating is discrimination. It is saying based on the past this is the future. This is illegal in the United States. In the 1800s, almost all blacks were uneducated. Based on the past, blacks could not be educated. This conclusion is totally wrong, and total illegal. The constitution and the laws were changed accordingly. However, this is still going on today. Now it is done with credit ratings. Based on the past, you will not pay therefore; we need to charge higher interest. If I do not pay now, put my a$s in jail, but do not discriminate against me based on my past. That is illegal. All banks and mortgage companies are breaking the law and most of the lawyers are in it with them. We need government intervention to stop this. We, the people, need to step up and say we will not take it any more. Contact every congressman in every state and let him/her know your concern. When a state or federal politician visits your area, let them know that the current credit reporting and banking practices are illegal.
Susan
Somewhere,#5Consumer Comment
Fri, April 18, 2003
We also stared out with Aames and a month later ended up with Fairbanks. After several months of problems with Fairbanks, I started doing a little research. According to the Better Bussiness Bureau at that time Aames Home Loans was also doing business under the name of Fairbanks Capital Corp. I printed out a copy, just in case I would need it some day. So no matter what these employees say, I have the proof in writing.
J
Pleasant Grove,#6Consumer Suggestion
Thu, April 17, 2003
How can employees of this company be ethical and honest if all you can get from them is a bogus fax machine number when you are "transferred" to a supervisor--two or three different "status of your loan" in the same phone conversation with them, put on hold for 30 - 40 minutes and then start all over again. Ethical and Honest employees would try to UNEARTH the problem that the callers are asking about and refer to a real live supervisor or department without giving you numbers that are in 4 different cities and still no help. I know the person that we dealt with in Jacksonville Florida recognized my (very distinguishable) voice and hung up on me or automatically transferred me to a fax machine each and every time I called. And when I called Salt Lake City, or Hatsboro PA I was never given anything but " the number you are calling is not in service at this time", etc..... Same old, Same old Fairbanks employees thinking that they were "not brainwashed" but if you read these web pages, with the exception of one who really wanted to help, you see they all fall under the same category as their company....Do not help, assist or give any customer service whatsoever,,,and make darn sure you send the customer to no-where land.
John
Freeland,#7Consumer Comment
Wed, April 16, 2003
I'm tired of the implication that anyone who's loan is "serviced" by Fairbanks deserves sub-prime treatment because they are in the position of "borrower" in the mortgage industry's sub-prime lending scam. The LOAN is sub-prime...not the borrower...and less-than-perfect credit is not the only way to end up with a sub-prime loan. When I refinanced my manufactured home, my credit was fine, but I could only qualify for a sub-prime mortgage because the home was built in a factory, rather than on-site. At the time, I had never even heard the term "sub-prime" and no one was volunteering any information. Face it. The sub-prime mortgage industry, (now sometimes referred to as 'non prime'...how nice), is built on the principal of exploitation of borrowers' unfortunate circumstances in order to bleed more money, build less equity, and side-step regulatory measures. This exploitation has grown so big in the hands of predatory lenders that it requires "servicers" like Fairbanks that operate like organized crime, yet another step away from regulation, fruadulently blackmailing "protection money" from already-ditressed citizens. How dare you imply that the borrowers somehow "asked for it" when they did what they had to do to make a home for their families. I suppose when "your bank" denies your mortgage application, you should just build a hut for your children. Come to think of it, you would be better off that way...
Former
Salt Lake City,#8Consumer Comment
Tue, April 15, 2003
Aames Mortgage is not a subsidiary of Fairbanks but a wholesale lender to the sub-prime mortgage niche. The fact that you got a loan with Aames and not with your bank shows your credit is below the "A" paper grade. Fairbanks is the largest of the sub-prime servicers and most mortgage companies do not service their own loans. Fairbanks phone system can be hard to deal with, I know, I had to go through the same system to call in sick and it can take close to forever to actually speak with a real person. Fairbanks is agressive, yes, but the employees are truly trying to save people from foreclosure. Sometimes without the support of management if the loan-to-value is low and the company would make more money if they did foreclose. The employees I worked with are very knowledgeable in the mortgage industry and very honest, ethical individuals. I can't necessarily say the same of some of the upper management.
Shannon
Buckeye,#9Author of original report
Thu, February 06, 2003
I almost forgot to mention that Aames managed to completely lose at least one of our payments made with a money order. My husband and I had to scrimp and scrape to make up the lost payment and to pay their late fees because THEY lost our payment. (This was nearly a year ago and that payment is still MIA.) Every time we called about it we were given the run around and treated like dirt. I remember several times where we would call and be shuffled between voicemails and non-answered numbers that would just ring and ring. Naturally, no employee that we every spoke with had ever head of the previous employee that we had spoken to...we were stonewalled from the onset. PS: I got my year-end tax statement yesterday and it looks like Aames snuck off with some of my escrow money before they paper shuffled me to their 'raw meat eating' servicer Fairbanks. I am SO mad and disgusted with these two companies. I hope when these two companies fall, they fall HARD.
Shannon
Buckeye,#10Author of original report
Thu, February 06, 2003
I almost forgot to mention that Aames managed to completely lose at least one of our payments made with a money order. My husband and I had to scrimp and scrape to make up the lost payment and to pay their late fees because THEY lost our payment. (This was nearly a year ago and that payment is still MIA.) Every time we called about it we were given the run around and treated like dirt. I remember several times where we would call and be shuffled between voicemails and non-answered numbers that would just ring and ring. Naturally, no employee that we every spoke with had ever head of the previous employee that we had spoken to...we were stonewalled from the onset. PS: I got my year-end tax statement yesterday and it looks like Aames snuck off with some of my escrow money before they paper shuffled me to their 'raw meat eating' servicer Fairbanks. I am SO mad and disgusted with these two companies. I hope when these two companies fall, they fall HARD.
Shannon
Buckeye,#11Author of original report
Thu, February 06, 2003
I almost forgot to mention that Aames managed to completely lose at least one of our payments made with a money order. My husband and I had to scrimp and scrape to make up the lost payment and to pay their late fees because THEY lost our payment. (This was nearly a year ago and that payment is still MIA.) Every time we called about it we were given the run around and treated like dirt. I remember several times where we would call and be shuffled between voicemails and non-answered numbers that would just ring and ring. Naturally, no employee that we every spoke with had ever head of the previous employee that we had spoken to...we were stonewalled from the onset. PS: I got my year-end tax statement yesterday and it looks like Aames snuck off with some of my escrow money before they paper shuffled me to their 'raw meat eating' servicer Fairbanks. I am SO mad and disgusted with these two companies. I hope when these two companies fall, they fall HARD.