Complaint Review: First Guarantee Mortgage - Saratoga Springs New York

In September 2003, I recieved a phone message from First Guarantee Mortgage asking that I return their call so they could help me get a better intrest rate on my home loan. Well I saved the message because I had been considering refianacing my First and Second mortgage into one loan. I called a couple local mortgage companies and decided to give first Guarantee a call back to see what they could offer me compared to the other companies I had talked with. This will turn out to be a HUGE mistake on my part!!!

I spoke with loan officer Chad Diebera(sp?)and he made all my wishes on refinancing sound possible. With in a couple phone conversations he has me convinced he could give me a better deal verses the other companys I had been talking with. So shortly there after I stopped any new proceddings with the other companys. Mistake # 2!

He assured me we would be closing in a short period of time and that I would be saving hundreds of $ a month. He had me immediately fax him all of our information to him. He then convinced me that we didn't need our VA loan and would be better off with out it? I was weary of this but he is the one that is suppose to be trained in these things, it's not my job. But I'm fast thinking we all need to take a mortgage class or something so we all know the ends and outs of the process. You believe what they say because you trust that they are honest with you. I have also since realized that honestly is not their job or thier priority.

As time went on and our closing date was pushed back we were slowly over time needing more and more money for closing. And our intrest rate is climbing! What started in the begining of our conversations as being 5% was now 7 and 1/4 and now 9000.00 in closing instead of 0! The whole time though Chad is assuring me that the closing cost is mostly over charges, from our then mortgage company, on our pay off. He told me NUMEROUS times that I would recieve 35000.00$ back from my first and second mortgage companys, since they were over charging me on payments and intrest in my pay off amount.

Me believing this , why should I not trust chad, I figure as long as im getting that amount back I have nothing to loose. So our actual closing date comes and we sign and we send over a 9000.00+ $ cashiers check to them. Less than a week later chad calls me and says they need a check for 350$ more dollors but not to worry, I would get it back with the other money. I was hesitate, but what do i know, so I mailed off another check to them.

IF I had KNOWN that I Was really going to be paying that much for closing and not recieve any of it back I would NEVER have agreeded to this loan. I had other plans for that money, which we took from our 401K. I have 3 children and there are lots of things they could use that money for later in life. I was making my 1st and 2nd mortgage just fine and still had that cushion. NOW I may only have 1 loan, but my payments are not much lower and neither is my intrest rate and I no longer have that money.

We did recieve a check from the last mortgage company, but only for 1400.oo, hardly the 3800.00 we were TOLD we would get back. I called them to see if we would recieve more back, she said no, that was all we were to get back. I told her what Chad and First Guarantee had told me, and she said they just plain lied to me. I called Chad and left him a few messages to call me, he didn't return my calls.

So finally I called and asked for his supervisor, I was put on hold and then transfered to someone else. I then started to explain to this person what had happened and he said he was not chad's supervisor and to hold. I was transfered again where I asked to speek w/ the supervisor, transfered again, asked for the suporvisor again and then put on hold. Then, Chad picks up? Well I'll be d**n I guess chad is his own supervisor!? Can you say run around? I told chad that I had not recieved all my money that he said i would get. He pretty much weaseled his way out of it by playing dumb, and sugesting that the other mortgage company had paid my taxes twice! He also made as if it was the other companys fault and how I should contact them. In all the run around i was getting I did ask a couple times for Chads supervisors name and # and address, never to recieve it, just asked to hold.

So pretty much I had to PAY over 9 grand just to get cheated out of my VA loan and to have one mortgage rather than 2. My intrest and payments are not all that much cheaper. Oh also I owed 165000.00 on my loans together, and the total of this loan was 169, exactly what we appraised at. So I guess it actually cost me more than 9 grand to get this loan.

Stay away, far far away from FIRST GUARANTEE MORTGAGE company. They are totally dishonest and misleading. They will tell you what they think you want to hear in order to get you into the loan. They don't care about you, although they will try to convience you they do. If you know vertually nothing about mortgages and loans they will lie to you, tell you things that are untrue. They know you dont know any better, the worst part, they don't care!!!

To my knowledge there is nothing I can do about this because there is no where in my loan that says I would get x amout of money back. They know I can't prove what he told me, what he made me believe, so they have no worries, its a free trip for them to tell you what they can to make theirselves more money.

Gina

Bumpass, Virginia
U.S.A.