Posted on 02/24/2007 10:32:51 PM PST by ex-Texan
The FBI says it happens more in Georgia than in any other state...and you could end up losing your home because of it.
It's called mortgage fraud.
Maybe someone steals your identity and takes out a loan, or maybe your company tacks on illegal fees.
12 On Your Side's Jeff Anderson tells you how not to be a victim.
Shirley Alvarez made a career out of serving her country in the military. But after she got back from her last stint overseas in Korea, she says she got a nasty surprise.
"They told me I missed a mortgage payment," she said.
She says that was virtually impossible because the military paid her mortgage like clockwork.
When she finally talked to a representative at Countrywide Mortgage, they told her company records indicated she had been late on every payment for eight years.
"I'm looking at seven or eight thousand dollars in late fees."
Not to mention thousands of dollars in other miscellaneous fees. Shirley's attorneys eventually advised her to sell her house. In the process she says she lost a lot of money and her comfort zone.
"I haven't lived in an apartment for 30 years," she said.
Shirley isn't the only who feels like she got shammed.
"I send them in by money order...that way I have my receipt," Chris Williams told 12 On Your Side.
Chris has been paying her mortgage that way for years. She and her husband did get behind on their payments, but then she made six straight double payments of more than $800 each to get caught up. To her surprise, EMC Mortgage told her they never got the extra money...even though it was sent in by money order.
"They're not returning my money, but yet they say I'm behind on my house."
How much is she behind? EMC tells her she owes more than $11,000. She knows she was late a few times...but that's a lot of late fees.
If she can't pay it, she may lose her house.
As of now, neither accusation has been proven in court. 12 On Your Side is talking with both mortgage companies about these problems, looking for a resolution.
You may wonder how this could happen...but several websites have pages and pages of complaints about these sorts of practices.
In 2003, mortgage company Fairbanks Capital settled with the Federal Trade Commission for $40 million. The company was charged with, among other things, levying illegal late fees and other unauthorized fees.
Shirley and Chris' attorney, Angie McElroy, has been dealing with these types of cases for years. She says even though these are big powerful companies, you do stand a chance to set things right.
"They're pretty good if you call them on it," she said. "A lot of times mortgage companies will settle."
That's just what Shirley asked McElroy to do...and the first step is a 40 page legal complaint. The goal is to get Shirley's money back--money she feels was deceptively taken from her.
"Big time...cheated, abused, feel like I been raked through the coals," she said.
There are ways to protect yourself.
Every year, ask for a transaction history from your mortgage company, not a payment history. A transaction history will have all the fees.
Countrywide said this about Shirley's mortgage:
Countrywide deeply regrets this issue was not resolved in a timely manner.
When Ms. Alvarez's situation was brought to our attention, we took immediate action to rectify the situation. The late fees in question will be immediately refunded.
But they didn't have Ms. Alvarez's contact information. They wanted it from us.
Ms. Alvarez tells 12 On Your Side she doesn't want to talk to them.
Her attorney says she should get about $6000 in refunds.
After 12 On Your Side looked into the complaints, EMC Mortgage representatives say the extra charges on Chris Williams' home were a mistake and will make things right.
That will save her $11,496.
Adding both of those to our 12 On Your Side cash register, we've gotten $200,460 back for you.
Mortgage companies have the courts lined up to rubber stamp foreclosure actions swiftly. It is almost an automatic process in some states.
Mortgage lenders often claim 'mistake' as an excuse after they have been caught in television investigations. Just like Bubba Clinton: "I made a mistake," this excuse gets lots of winks.
*Ping*!
"Shirley's attorneys eventually advised her to sell her house"
I know this is not the point of the article, but this was an incredibly stupid advice. She owed 7-8000 in late fees, but she had to pay that anyway AND she lost on selling the house, whereas, if she just paid it and kept the house, the house would keep appreciating. She could have refinanced or taken out a second to cover the late fees, if she didn't have the cash.
ack ping
This is an informative site about morgage servicing fraud and what consumers can do to fight it.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
If they refunded and called it a mistake it would be removed from the credit bureaus as well. A letter from the creditor admitting error is all you need to have something removed from your credit file.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Once my mortgage company sold my mortgage to another company. When I tried to pay it off, they told me, "they don't allow people to pay off mortgages unless they come into the office personally."
Being the company was 1400 miles away, this was ridiculous.
Another bank insisted we send payments to Brooklyn, but wouldn't credit them until the Brooklyn office sent them to Atlanta. We always used to send certified because they would always lie about when they recieved payment. After they did the Atlanta thing, we would send payments out over a month early and they still would insist they were late.
BTT
Center For Responsible Lending
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Sounds like it's only a matter of tome before one of these companies shafts the wrong person and ends up with a crazed gunman killing a lot of people at the home office.
She likely has one of those draconian arbitration clauses buried in the numerous forms and probably cannot sue them in any court, do any real investigation, recover attorney fees, join in a class-action or obtain punitive damages. Plus she would also likely have to pay thousands of dollars to have the matter heard by the mortgage companies chosen arbitrators. The Federal Arbitration Act: real good for some companies...
ping
Eagle First Mortgage Shut Down
Who is going to buy all those overpriced houses with all the fraudsters shut down?
bump
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