Complaint Review: Homecomings Financial A GMAC Company - Waterloo Iowa

We refinanced our home of 16 years with Homecomings Financial in February of 2004 to take out equity for business. In March, 2005, my husband was diagnosed with cancer and underwent radical surgery, chemo and radiation. As a result of the surgery, he is unable to work and went on Social Security Disability. During our medical emergency and medical bills, our December, 2005 mortgage payment was returned for insufficient funds. In March, 2006, I discussed our situation with Brad Manuel at Homecomings and he faxed me the documentation necessary to request a loan modification. I completed the documentation and faxed it back to Brad Manuel on April 24, 2006. The basis for the loan modification request was medical and permanent loss of income.

We did not receive a response to our request, but in May, 2006 we started paying an extra $593.69 per month to make up for the returned payment. After 3 months of paying the extra amount, Homecomings increased our interest rate. We paid the new payment and an extra $339.89 for the next 6 months at which time Homecomings increased our interest rate again. For the next 4 months, we paid an extra $79.94 per month until we could no longer afford the payments. We paid an extra $4,040.17 over a 13 month period to make up for a $2,685.99 returned check. Instead of the delinquency being cured, when we stopped paying the extra amount after the May, 2007 payment, we ended up with a delinquent amount of $8,097.61. Cannot understand how making a payment over the amount required would result in such a delinquency.

Since our original April 24, 2006 request, we have resubmitted our request for a loan modification several times. When I call to discuss the status, I get transferred several times and am told that my request has not been received. I re-send again, call again, get the same run around and re-send again, call again and get the same run around.

We are now considered 90 days past due, with an amount due to bring our loan current in the approximate amount of $20,000!!! Our mortgage started out at $350,000, with a principal balance as of the December statement of $341,014.43. This is tantamount to negative amortization, which is illegal in the state of Tennessee. In 2007 we paid $32,134.83 in interest!!!

In addition to other unknown astronomical fees, it appears that each month they charge us a $30 NSF fee, however, we only had one returned check in December, 2005. I am at my wits end.

I have filed a complaint with the Department of Justice, Federal Trade Commission, Tennessee Department of Commerce & Insurance, Consumer Affairs, and the State of Tennessee Department of Financial Institutions. I have also copied my Congressman and Senators on all correspondence to Homecomings, but my elected officials have done nothing to assist.

I am now researching mortgage servicing guidelines to try and figure out their astronomical fees and whether or not they are legal.

If anyone has already done this, please share your research.

I would also be interested in hearing about any class action lawsuits against this predatory lender.

Cassandra

Kodak, Tennessee

U.S.A.