Complaint Review: HomeQ - Sacramento California

I am writing this both as an employee of a bank and as a fellow consumer. It is always imperative that when a person takes out a loan that the contract is read thoroughly. If the consumer does not understand any portion of the contract then they should have the loan contract reviewed by an attorney. There is a also what is known as the right of recission period and that is a three business time-frame in which the consumer has to review the loan contract before funds are disbursed. If the consumer does not like the terms of the loan then they can recind the loan prior to receiving the loan proceeds. As with any contract the consumer needs to be aware of what they are signing. Ignorance is not the fault of the lending institution, It is the consumers. Here is some helpful information on Simple Interest. Simple Interest put in mathematical terms is principal x rate x time. (x=means multplied) When calculating how a payment will be applied. The principal balance is multiplied by the interest rate then divided by 365 (the amount of days in a normal year) and that equals the per diem also known as the interest per day. Per diem is then multiplied by the days elapsed between payments and that equals the amount applied to interest and the remainder goes to principal. Here is an example of what the formula looks like. principal balance x interest rate/365 days in a year=per diem x day elapsed from one payment to the next payment. This equals the amount of that payment that is applied to interest on the account and the remainder is used towards the principal balance. Based on the information you provided. I am assuming that your loan is likely a 15 year loan and that is was taken out sometime in 1998 and that the amount borrowed was $7500.00 so here is an example of how DSI might work based on that loan for the first payment since the interest rate was not provided I will estimate that the interest rate is 8% for this example. If the interest rate is at 8% then the monthly payment is $71.67. Keep this mind when reading the equasion. I also assumed the first payment was made on time approximately 30 days after receiving the loan proceeds. $7500 x .08=600/365=$1.644 x 30= 49.32 $71.67-$49.32=$22.35 this means that of that payment of $71.67 that $49.32 is applied to interest and $22.35 is applied to the principal balance. This same process is then repeated the next month based on the lower principal balance. Where people often mistakes on DSI loans is not paying them in a timely manner, Let's say the customer decides to make a payment 15 days after the due date which is often within a customer grace period. (grace period=amount of time a customer has to make a payment before the late charge is assessed.) Assuming the customer made the previous payment on time and the next payment 15 days into the grace period then 45 days would elapse between the two payments. Example: $7500 x .08=600/365=$1.644 x 45= $73.98. Because this payment was not made in a timely manner the entire payment applied to interest since the interest days elapsed between payments exceeded the amount of the payment. $71.67-73.98=-$2.31 This payment was $2.31 short of what was required to satisfy the interest owing on the account so the $2.31 is carried over to the next month as an interest shortage. I hope this explains SImple Interest. If the consumer has reason to question application of payments, contact the company the loan is being handled by and place a request for a payment history, then review it and if there is still questions call them and ask them to explain it or provide the formula for it's calculation. Here is a link to a loan amortization site that may help you out. http://list.realestate.yahoo.com/re/calculators/amortization.html Please keep in mind that a DSI loan cannot be calculated using a loan calculator unless all payments are made exactly on their scheduled due date, but this will give a rough idea of how a loan should amortize over time.

I am writing this both as an employee of a bank and as a fellow consumer. It is always imperative that when a person takes out a loan that the contract is read thoroughly. If the consumer does not understand any portion of the contract then they should have the loan contract reviewed by an attorney. There is a also what is known as the right of recission period and that is a three business time-frame in which the consumer has to review the loan contract before funds are disbursed. If the consumer does not like the terms of the loan then they can recind the loan prior to receiving the loan proceeds. As with any contract the consumer needs to be aware of what they are signing. Ignorance is not the fault of the lending institution, It is the consumers. Here is some helpful information on Simple Interest. Simple Interest put in mathematical terms is principal x rate x time. (x=means multplied) When calculating how a payment will be applied. The principal balance is multiplied by the interest rate then divided by 365 (the amount of days in a normal year) and that equals the per diem also known as the interest per day. Per diem is then multiplied by the days elapsed between payments and that equals the amount applied to interest and the remainder goes to principal. Here is an example of what the formula looks like. principal balance x interest rate/365 days in a year=per diem x day elapsed from one payment to the next payment. This equals the amount of that payment that is applied to interest on the account and the remainder is used towards the principal balance. Based on the information you provided. I am assuming that your loan is likely a 15 year loan and that is was taken out sometime in 1998 and that the amount borrowed was $7500.00 so here is an example of how DSI might work based on that loan for the first payment since the interest rate was not provided I will estimate that the interest rate is 8% for this example. If the interest rate is at 8% then the monthly payment is $71.67. Keep this mind when reading the equasion. I also assumed the first payment was made on time approximately 30 days after receiving the loan proceeds. $7500 x .08=600/365=$1.644 x 30= 49.32 $71.67-$49.32=$22.35 this means that of that payment of $71.67 that $49.32 is applied to interest and $22.35 is applied to the principal balance. This same process is then repeated the next month based on the lower principal balance. Where people often mistakes on DSI loans is not paying them in a timely manner, Let's say the customer decides to make a payment 15 days after the due date which is often within a customer grace period. (grace period=amount of time a customer has to make a payment before the late charge is assessed.) Assuming the customer made the previous payment on time and the next payment 15 days into the grace period then 45 days would elapse between the two payments. Example: $7500 x .08=600/365=$1.644 x 45= $73.98. Because this payment was not made in a timely manner the entire payment applied to interest since the interest days elapsed between payments exceeded the amount of the payment. $71.67-73.98=-$2.31 This payment was $2.31 short of what was required to satisfy the interest owing on the account so the $2.31 is carried over to the next month as an interest shortage. I hope this explains SImple Interest. If the consumer has reason to question application of payments, contact the company the loan is being handled by and place a request for a payment history, then review it and if there is still questions call them and ask them to explain it or provide the formula for it's calculation. Here is a link to a loan amortization site that may help you out. http://list.realestate.yahoo.com/re/calculators/amortization.html Please keep in mind that a DSI loan cannot be calculated using a loan calculator unless all payments are made exactly on their scheduled due date, but this will give a rough idea of how a loan should amortize over time.

I am writing this both as an employee of a bank and as a fellow consumer. It is always imperative that when a person takes out a loan that the contract is read thoroughly. If the consumer does not understand any portion of the contract then they should have the loan contract reviewed by an attorney. There is a also what is known as the right of recission period and that is a three business time-frame in which the consumer has to review the loan contract before funds are disbursed. If the consumer does not like the terms of the loan then they can recind the loan prior to receiving the loan proceeds. As with any contract the consumer needs to be aware of what they are signing. Ignorance is not the fault of the lending institution, It is the consumers. Here is some helpful information on Simple Interest. Simple Interest put in mathematical terms is principal x rate x time. (x=means multplied) When calculating how a payment will be applied. The principal balance is multiplied by the interest rate then divided by 365 (the amount of days in a normal year) and that equals the per diem also known as the interest per day. Per diem is then multiplied by the days elapsed between payments and that equals the amount applied to interest and the remainder goes to principal. Here is an example of what the formula looks like. principal balance x interest rate/365 days in a year=per diem x day elapsed from one payment to the next payment. This equals the amount of that payment that is applied to interest on the account and the remainder is used towards the principal balance. Based on the information you provided. I am assuming that your loan is likely a 15 year loan and that is was taken out sometime in 1998 and that the amount borrowed was $7500.00 so here is an example of how DSI might work based on that loan for the first payment since the interest rate was not provided I will estimate that the interest rate is 8% for this example. If the interest rate is at 8% then the monthly payment is $71.67. Keep this mind when reading the equasion. I also assumed the first payment was made on time approximately 30 days after receiving the loan proceeds. $7500 x .08=600/365=$1.644 x 30= 49.32 $71.67-$49.32=$22.35 this means that of that payment of $71.67 that $49.32 is applied to interest and $22.35 is applied to the principal balance. This same process is then repeated the next month based on the lower principal balance. Where people often mistakes on DSI loans is not paying them in a timely manner, Let's say the customer decides to make a payment 15 days after the due date which is often within a customer grace period. (grace period=amount of time a customer has to make a payment before the late charge is assessed.) Assuming the customer made the previous payment on time and the next payment 15 days into the grace period then 45 days would elapse between the two payments. Example: $7500 x .08=600/365=$1.644 x 45= $73.98. Because this payment was not made in a timely manner the entire payment applied to interest since the interest days elapsed between payments exceeded the amount of the payment. $71.67-73.98=-$2.31 This payment was $2.31 short of what was required to satisfy the interest owing on the account so the $2.31 is carried over to the next month as an interest shortage. I hope this explains SImple Interest. If the consumer has reason to question application of payments, contact the company the loan is being handled by and place a request for a payment history, then review it and if there is still questions call them and ask them to explain it or provide the formula for it's calculation. Here is a link to a loan amortization site that may help you out. http://list.realestate.yahoo.com/re/calculators/amortization.html Please keep in mind that a DSI loan cannot be calculated using a loan calculator unless all payments are made exactly on their scheduled due date, but this will give a rough idea of how a loan should amortize over time.

I can tell you, almost beyond a shadow of a doubt why your loan is in the situation it is....Chances are, you have been late on this account quite a bit, causing your loan (most likely a daily simple interest loan) to gain interest every month....

I can tell you, almost beyond a shadow of a doubt why your loan is in the situation it is....Chances are, you have been late on this account quite a bit, causing your loan (most likely a daily simple interest loan) to gain interest every month....

I can tell you, almost beyond a shadow of a doubt why your loan is in the situation it is....Chances are, you have been late on this account quite a bit, causing your loan (most likely a daily simple interest loan) to gain interest every month....

I can tell you, almost beyond a shadow of a doubt why your loan is in the situation it is....Chances are, you have been late on this account quite a bit, causing your loan (most likely a daily simple interest loan) to gain interest every month....

ALL of these gangsters can be stopped, but it will require swift legal action. After many months of investigation, I have concluded that class-action is not the ONLY route to justice. We need to swamp these gangsters with thousands of individual lawsuits. That will get their attention, and it WILL make THEM ask the courts to establish the "class." Legal fees ARE recoverable in "unfair business practices" complaints. Punitive damages are also VERY possible. Your local lawyer can help you, BUT he/she will probably need to be paid something upfront. (Some legal aid outfits also will take your case, IF you pay them a small fee.) We also need to start - maybe on this website - a directory of "black-hat lawyers," who represent the gangsters. A "whitehat" directory would also be useful. In our local communities, we can make it known that ANY lawyer who takes money from the foreclosure gangsters, will NOT get OUR business. The main thing every victim on this site needs to know is: If you do not fight in the legal arena, you will lose. Good Luck!