- Report: #288976
Complaint Review: World Savings Bank - World Savins & Loan - World Mortgage Company - Monterey Park California
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World Savings Bank - World Savins & Loan - World Mortgage Company
2525 Corporate Place, Suite 200 Monterey Park, 91754 California, U.S.A.
Phone:
800-914-8166
Web:
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World Savings Bank - World Savins & Loan - World Mortgage Company Negative Amortization loan that I was not total I was obtain, until I tried to refinance my house and had problems doing so. Monterey Park California
We refinanced in 7/05 with an adjustable rate, and was told this was the best deal for us. We trusted this broker, because we refinanced with him before but in was with a different company this time. We were told that our payments would be $1,087.60 plus taxes and insurance it came to 1335.15. We had no problem with this. We refinanced at $298,000 we now owe $321,000. We still have until 07/08 when our 3 years will be up. And our payments will go up.
When we tried to refi again by another mortgage Co. when we were going to have work done to our house we were told because of the way our mortgage was, they were having a hard time finding someone to take over our loan. They explained to us that Deferred Interest was added to our loan balance every month. No where in our paper work that we signed say that Deferred interested would be added or that we could make three different payments.
It only has the one payment amount we would be making.
Over the past 2 years our payments have gone up $200.00. Each month our balance goes up so we our losing the equity in our house and the value of houses is going down. What do we do to get out of this mess we our in? How do we get our money back? How do you know who is a Predatory Lendor or who is really trying to help you out?
Dottie
Moreno Valley, California
U.S.A.
When we tried to refi again by another mortgage Co. when we were going to have work done to our house we were told because of the way our mortgage was, they were having a hard time finding someone to take over our loan. They explained to us that Deferred Interest was added to our loan balance every month. No where in our paper work that we signed say that Deferred interested would be added or that we could make three different payments.
It only has the one payment amount we would be making.
Over the past 2 years our payments have gone up $200.00. Each month our balance goes up so we our losing the equity in our house and the value of houses is going down. What do we do to get out of this mess we our in? How do we get our money back? How do you know who is a Predatory Lendor or who is really trying to help you out?
Dottie
Moreno Valley, California
U.S.A.
2 Updates & Rebuttals
Tim
San Antonio,Texas,
U.S.A.
Here we go again complaining that we didn't read.
#2UPDATE EX-employee responds
Sat, January 10, 2009
So your broker didn't tell you everything! Really that NEVER happens. Read your documents......everything is in the disclosures about the minimum payment that you will pay. Every statement has 4 options and if you are on auto pay you still get a statement showing where your money went. READ THINGS! I'm guessing when you wanted work done that you wanted to get a HELOC which is based on your current balance of your mortgage and what your house is worth....well you chose to continually increase your mortgage balance by paying the minimum payment options which clearly shows the minimum payment and deferred interest....why would someone lend you an ELOC and why didn't you go with World Savings for the HELOC since they will put it behind your deferred interest loan. HOW DO YOU GET YOUR MONEY BACK...seriously what money ...the money they let you defer from interest you owe them....give me a break. I can not believe that is actually a question. Make a full payment like a fixed rate loan would have FORCED you to do...did we really think we were going to pay that little for your loan amount when every other mortgage company would have quoted higher or even a simple calculator online would have told you that the payment would not cover everything. Why don't consumers do their own research instead of blaming everyone else.
Nikki
Coconut Creek,Florida,
U.S.A.
Look at your paperwork
#3Consumer Comment
Wed, December 05, 2007
Look at your mortgage paperwork. What is the percentage rate of your adjustable mortgage? If it is only around 1.7%, then your payments are correct for a regular amortizing mortgage and you need to get World Savings to fix it. However, if your rate is any higher than that, then $1087 per month is way too low on a $298,000 loan, which would result in negative amortization. Find the page that shows your payment and that will probably be the page with any reference to deferred interest or negative amortization. If your broker told you $1087, then he knew it was a deferred interest mortgage and should have explained it to you. He should have told you that you have to pay a minimum of $1087 to keep your mortgage current, but pay more if you could to result in positive amortization. Go online to a loan amortization calculator. Type in the loan amt, interest rate and years and you will see what your payments should have been to not defer the interest. You will probably find they should have been much higher than $1087. By the way, your payments may have been anywhere from $1600 (on 5%) to $2100 (on 8%) per month on a $298,000 loan (depending on your interest rate). See how much you have saved over the last 2 years with the lower payments and subtract that from how much your mortgage balance has gone up ($23,000) to see how much money you are really being screwed for. Don't forget, even though you only have to pay $1087 to keep your mortgage current, you should pay the higher payment shown on the amortization table (and add some for what you are behind in amortization).
