Foreclosure and Law of statute

[Alabama=Screwed]

What is the name of your state? Alabama - (Home of the worst and fewest Consumer Protection laws in the nation)

We (my wife and I) were victims of a well known "Scam" in the finance industry called: "Put 'em in the hole, so they CAN'T say 'no' to the loan",( which falls under "Predatory Lending" and "Deceptive Business Practices") by two men with a 'mortgage broker', who were taking direction from someone with 'The Bank' that our contract was presold to.

Many of the things they did were nothing short of plain stealing, and the terms of the contract, the scam forced us into signing, were so blatantly unconscionable, if we could have gotten it in front of judge he/she would have set a new high in punitive damages. However, due to an arbitration clause, and the bank "Stringing Us Along" in negotiations for over a year, Alabama law wouldn't allow us to take them to court. (Action must be brought within one year, in Alabama)

The mortgage payments are so far above our means, in order to make the payments each month, little by little we gave them all of our savings, then sold all our personal belongings that had any real value, and gave them that, and finally now, had to file bankruptcy. Even so, we have still fallen behind on the payments.

My question:
Since WE can't take the BANK to court, If or when the bank forecloses, is there ANY WAY that we can make the BANK take US to court, and be afforded the opportunity to tell OUR side of the story and show all the "Wrongs" that were done, to a judge, even though the time for bringing action has run out on the original complaint or is Alabama and/or Federal Law set up so that even "The Bad Guys" in BANKING always win?

I fear loosing my wife's "Dream Home," that I built for her with my own hands, where we've begun living out our retirement years, to a couple of con men crooks, would be more than I could bare. Especially if "The LAW" was on their side wouldn't allow the TRUTH of HOW and WHY it happened to ever be known!

Knowing that a lawyers time, is his/her stock in trade, I sincerely thank you all, for your time spent, not only on my question, but on all the post in this forum.

Joe, in Alabama

 

[weenor]

Joe- I feel reasonably certain that I can steer you in the right direction, but I need a few things first....

1. Take a deep breath and take responsibility for the fact that you did not do your homework prior to purchasing a home you obviously could not afford

2. STOP ranting and START providing some useful information.

When was the home purchased?, what was the purchase price?, what is the interest rate?, the name of the lender you currently have ?and how much equity do you currently have in the home?

Is the mortgage insured by FHA? if not then by whom?

Did you file for chapter 13 or 7 and when did you file? what county are you in?

Did you reaffirm the home loan with your current lender?

You have hinted at fraud by the bank....what are the facts and circumstances that lead you to believe fraud has been committed. Did you receive your truth in lending statement prior to closing, did you read it?

Let's start with this information and go from there.

 

[seniorjudge]

What is the name of your state? Alabama - (Home of the worst and fewest Consumer Protection laws in the nation)

We (my wife and I) were victims of a well known "Scam" in the finance industry called: "Put 'em in the hole, so they CAN'T say 'no' to the loan",( which falls under "Predatory Lending" and "Deceptive Business Practices") by two men with a 'mortgage broker', who were taking direction from someone with 'The Bank' that our contract was presold to.

Many of the things they did were nothing short of plain stealing, and the terms of the contract, the scam forced us into signing, were so blatantly unconscionable, if we could have gotten it in front of judge he/she would have set a new high in punitive damages. However, due to an arbitration clause, and the bank "Stringing Us Along" in negotiations for over a year, Alabama law wouldn't allow us to take them to court. (Action must be brought within one year, in Alabama)

The mortgage payments are so far above our means, in order to make the payments each month, little by little we gave them all of our savings, then sold all our personal belongings that had any real value, and gave them that, and finally now, had to file bankruptcy. Even so, we have still fallen behind on the payments.

My question:
Since WE can't take the BANK to court, If or when the bank forecloses, is there ANY WAY that we can make the BANK take US to court, and be afforded the opportunity to tell OUR side of the story and show all the "Wrongs" that were done, to a judge, even though the time for bringing action has run out on the original complaint or is Alabama and/or Federal Law set up so that even "The Bad Guys" in BANKING always win?

I fear loosing my wife's "Dream Home," that I built for her with my own hands, where we've begun living out our retirement years, to a couple of con men crooks, would be more than I could bare. Especially if "The LAW" was on their side wouldn't allow the TRUTH of HOW and WHY it happened to ever be known!

Knowing that a lawyers time, is his/her stock in trade, I sincerely thank you all, for your time spent, not only on my question, but on all the post in this forum.

Joe, in Alabama

Q: Since WE can't take the BANK to court?

A: Why?


(Answer that one too. Thanks.)

 

[HomeGuru]

Q: Since WE can't take the BANK to court?

A: Why?


(Answer that one too. Thanks.)

**A: I would like to also know the answer to that one.

 

[weenor]

TO SJ and HG

However, due to an arbitration clause....

Despite an Alabama statute to the contrary..an arbitration clause associated with the purchase of a home is fully enforceable, with the exception of some extremely rare circumstances that so far have not come up in OP's post. All is not lost however, if OP will answer my questions, I feel reasonably sure I can help.

 

[HomeGuru]

Despite an Alabama statute to the contrary..an arbitration clause associated with the purchase of a home is fully enforceable, with the exception of some extremely rare circumstances that so far have not come up in OP's post. All is not lost however, if OP will answer my questions, I feel reasonably sure I can help.

**A: you are missing the point here. The point is that the writer is taking the stand that there is no recourse. If there is a binding arbitration clause somewhere in the mortgage note, then that's the recourse to settle any disagreements. Notwithstanding, the mortgagor would still be entitled to litigate under Federal law.

 

[Alabama=Screwed]

My thanks to all of you for replying!
From my expierence with another forum of this type, I didn't expect any replys this quick.

I am in the processing of answering all of your questions, but due to limited keyboard skills, it will be this evening (4-21-06) before I get it posted. I wanted to let you know that I'm not ignoring you, and appreciate your patience.

Thank you all, again.

Joe, in Alabama

 

[Alabama=Screwed]

1. Take a deep breath and take responsibility for the fact that you did not do your homework prior to purchasing a home you obviously could not afford.

I do take responsibility for not doing enough homework, however, we COULD afford, the loan we APPLIED FOR, at the RATE WE WERE QUOTED, which was: $78,000.00 @ 6.5% (fixed) for 30 years. We CAN'T afford what we GOT, which was:
$124,000.00 @10% for 20 years.
How that came about, was done by way of the "SCAM" or "CON GAME" that I mentioned. It's a little "wordy" to explain and I didn't want to bore you, however if you would like the details, I would be MORE than happy, to post them, with hopes of preventing others from falling victim to it.

When was the home purchased?,

December, 2000
We gave them the loan application, around THE END OF AUGUST 2000, but in order to "set us up" for the scam, they stalled, drug their feet, and rescheduled the closing, over and over again, for over four months.
NOTE: The house wasn't really a "Purchase", I built it myself.

what was the purchase price?,

$124,000.00, but because of all the "Dirty Dealings" I'm not sure if that's the figure you're looking for.
We applied for $78,000.00, but the contract the "Mortgage Broker" manipulated us into signing was for $124,000.00.
HOWEVER, after about two and a half years a V.P. at the BANK our contract was presold to, using a variation of the same scam, raised it to $134,000.00. (This is what made me realize this BANK V.P., was actually "Calling the shots" when we were dealing with the "BROKER")
HOWEVER, after exposing the V.P.'s scam, making them deduct the payments we had made, and a little "Trickery" of my own, the LAST AMENDMENT to our contract showed the principal to be $116,000.00. Sorry about the long windedness, I'm just not sure which figure you were asking for.

what is the interest rate?,

6.99% It took almost three years to get it there from 10%!

the name of the lender you currently have ?

NEW SOUTH FEDERAL SAVINGS BANK in Birmingham, Alabama. I'm glad you ask, take note and BEWARE!

and how much equity do you currently have in the home?

According to the apprisal, $46,000.00. However, a common practice of the scam is to have a "friendly" appraiser inflate the appraisal, allowing the amount of the loan to be increased, and seems to be the general opinion in our case.

Is the mortgage insured by FHA? if not then by whom?

I don't know. This is where my lack of homework shows up. Wouldn't FHA have someone come out to inspect the house? I ask because, no one ever came out to inspect the house after it was completed.(Including the appraiser!)

Did you file for chapter 13 or 7 and when did you file? what county are you in?

Filed chapter 7 on 10/08/05 in Blount county - Discharged: 1/06/06

Did you reaffirm the home loan with your current lender?

Yes, reaffirmed 12/07/05

Did you receive your truth in lending statement prior to closing, did you read it?

We received FOUR Truth in Lending Statements, all in the same envelope. One for 6.5%, one for 7.5%, one for 8.5% and one for 9.5%. We were told to sign them ALL and send them back. When I questioned that, I was told: "In case the rates go back up, we won't have to delay the closing waiting for you to sign another one and get it back to us." When I questioned that answer, I was told in a very loud, irritated voice: " I'LL TEAR UP YOUR PAPERWORK RIGHT NOW, AND YOUR ASS WILL BE SUNK, BECAUSE WE'RE THE ONLY PEOPLE THAT WILL DO THIS FOR YOU!! NOW, DO YOU WANT THE "G--D---" LOAN OR NOT!!? Being unacustomed to being spoken to that way, I was so flustered I couldn't speak immediately, so he screamed again: "WELL, DO YOU!!? I managed a "yes", and he yelled: "THEN SIGN 'EM, AND SEND 'EM BACK!" and slammed the phone down, hanging up on me.
You have hinted at fraud by the bank....what are the facts and circumstances that lead you to believe fraud has been committed.

The thing with FOUR truth in lendings is the beginning, but there is so much, it will take me some time to type it all out. I will post it tomorrow. (4/22/06)

To answer the question: "WHY CAN'T I TAKE THEM TO COURT"
Two different attorneys told us since we filed our complaint with the bank a year ago, the time had run out to bring action against them. Both said, Alabama CONTRACT LAW says a complaint must be filed no later than one year from the date of discovery or date that it reasonably should have been discovered.

IT MAY BE WORTH NOTING: Neither attorney responded, when I asked about an Alabama CONSUMER law that says action may be brought up to one year after the expiration date of the contract, which would give us twenty one years to bring action. Nor did either respond when I suggested that it wouldn't be UNreasonable for someone to NEVER know that they had been scammed.
I, myself, thought they were just incompentent and stupid, until months later when I began explaining to the Banks "General Counsel" and the Vice President of the company the men worked for what they had done. I had just started explaining it, when the Vice President of the Brokering firm interrupted me saying: "I hope you're not going to try to tell me, that MY men pulled that old "PUT 'EM IN A HOLE SO THEY CAN'T SAY NO TO THE LOAN" stuff on you!
Only after he PUT A NAME ON IT, that described EXACTLY WHAT THEY DID, did I fully realize that what those two men had done, was a very well organized, and (since their VP reconized it instantly,) well known, SCAM!

Someone mentioned, ARBITRATION as a recourse.

I don't know about where YOU live, but in ALABAMA,....
BINDING ARBITRATION, is the closest thing to "PERMISSION TO STEAL" that corporations could ever hope for!
Every businessman knows if he can get his customers to sign one, he can do ANYTHING he wants, even if it's ILLEGAL! Because he knows, that ARBITRATORS know that one consumer isn't going to hire them again, but corporations will hire him again and again as long as he finds in their favor. He also knows, that as long as he doesn't steal more than $10,000.00 from an individual, that individual isn't going to spend the TEN THOUSAND PLUS dollars it cost a consumer to go to arbitration, knowing full well his chances of winning are less than slim.
I won't do business with a business that asks me to sign an arbitration agreement, because that tells me they have no intention of dealing with me "FAIRLY"

OOPS! I apologize for ranting again, I will try harder not to do that.

Sorry about not taking time to "spell check" this.
Thank you again,

Joe, in Alabama

 

[Alabama=Screwed]

What happened???

What happened?
Can NOONE suggest ANYTHING?

Did I do something wrong?

 

[weenor]

1. Take a deep breath and take responsibility for the fact that you did not do your homework prior to purchasing a home you obviously could not afford.

I do take responsibility for not doing enough homework, however, we COULD afford, the loan we APPLIED FOR, at the RATE WE WERE QUOTED, which was: $78,000.00 @ 6.5% (fixed) for 30 years. We CAN'T afford what we GOT, which was:
$124,000.00 @10% for 20 years.
How that came about, was done by way of the "SCAM" or "CON GAME" that I mentioned. It's a little "wordy" to explain and I didn't want to bore you, however if you would like the details, I would be MORE than happy, to post them, with hopes of preventing others from falling victim to it.

When was the home purchased?,

December, 2000
We gave them the loan application, around THE END OF AUGUST 2000, but in order to "set us up" for the scam, they stalled, drug their feet, and rescheduled the closing, over and over again, for over four months.
NOTE: The house wasn't really a "Purchase", I built it myself.

what was the purchase price?,

$124,000.00, but because of all the "Dirty Dealings" I'm not sure if that's the figure you're looking for.
We applied for $78,000.00, but the contract the "Mortgage Broker" manipulated us into signing was for $124,000.00.
HOWEVER, after about two and a half years a V.P. at the BANK our contract was presold to, using a variation of the same scam, raised it to $134,000.00. (This is what made me realize this BANK V.P., was actually "Calling the shots" when we were dealing with the "BROKER")
HOWEVER, after exposing the V.P.'s scam, making them deduct the payments we had made, and a little "Trickery" of my own, the LAST AMENDMENT to our contract showed the principal to be $116,000.00. Sorry about the long windedness, I'm just not sure which figure you were asking for.

what is the interest rate?,

6.99% It took almost three years to get it there from 10%!

the name of the lender you currently have ?

NEW SOUTH FEDERAL SAVINGS BANK in Birmingham, Alabama. I'm glad you ask, take note and BEWARE!

and how much equity do you currently have in the home?

According to the apprisal, $46,000.00. However, a common practice of the scam is to have a "friendly" appraiser inflate the appraisal, allowing the amount of the loan to be increased, and seems to be the general opinion in our case.

Is the mortgage insured by FHA? if not then by whom?

I don't know. This is where my lack of homework shows up. Wouldn't FHA have someone come out to inspect the house? I ask because, no one ever came out to inspect the house after it was completed.(Including the appraiser!)

Did you file for chapter 13 or 7 and when did you file? what county are you in?

Filed chapter 7 on 10/08/05 in Blount county - Discharged: 1/06/06

Did you reaffirm the home loan with your current lender?

Yes, reaffirmed 12/07/05

Did you receive your truth in lending statement prior to closing, did you read it?

We received FOUR Truth in Lending Statements, all in the same envelope. One for 6.5%, one for 7.5%, one for 8.5% and one for 9.5%. We were told to sign them ALL and send them back. When I questioned that, I was told: "In case the rates go back up, we won't have to delay the closing waiting for you to sign another one and get it back to us." When I questioned that answer, I was told in a very loud, irritated voice: " I'LL TEAR UP YOUR PAPERWORK RIGHT NOW, AND YOUR ASS WILL BE SUNK, BECAUSE WE'RE THE ONLY PEOPLE THAT WILL DO THIS FOR YOU!! NOW, DO YOU WANT THE "G--D---" LOAN OR NOT!!? Being unacustomed to being spoken to that way, I was so flustered I couldn't speak immediately, so he screamed again: "WELL, DO YOU!!? I managed a "yes", and he yelled: "THEN SIGN 'EM, AND SEND 'EM BACK!" and slammed the phone down, hanging up on me.
You have hinted at fraud by the bank....what are the facts and circumstances that lead you to believe fraud has been committed.

The thing with FOUR truth in lendings is the beginning, but there is so much, it will take me some time to type it all out. I will post it tomorrow. (4/22/06)

To answer the question: "WHY CAN'T I TAKE THEM TO COURT"
Two different attorneys told us since we filed our complaint with the bank a year ago, the time had run out to bring action against them. Both said, Alabama CONTRACT LAW says a complaint must be filed no later than one year from the date of discovery or date that it reasonably should have been discovered.

IT MAY BE WORTH NOTING: Neither attorney responded, when I asked about an Alabama CONSUMER law that says action may be brought up to one year after the expiration date of the contract, which would give us twenty one years to bring action. Nor did either respond when I suggested that it wouldn't be UNreasonable for someone to NEVER know that they had been scammed.
I, myself, thought they were just incompentent and stupid, until months later when I began explaining to the Banks "General Counsel" and the Vice President of the company the men worked for what they had done. I had just started explaining it, when the Vice President of the Brokering firm interrupted me saying: "I hope you're not going to try to tell me, that MY men pulled that old "PUT 'EM IN A HOLE SO THEY CAN'T SAY NO TO THE LOAN" stuff on you!
Only after he PUT A NAME ON IT, that described EXACTLY WHAT THEY DID, did I fully realize that what those two men had done, was a very well organized, and (since their VP reconized it instantly,) well known, SCAM!

Someone mentioned, ARBITRATION as a recourse.

I don't know about where YOU live, but in ALABAMA,....
BINDING ARBITRATION, is the closest thing to "PERMISSION TO STEAL" that corporations could ever hope for!
Every businessman knows if he can get his customers to sign one, he can do ANYTHING he wants, even if it's ILLEGAL! Because he knows, that ARBITRATORS know that one consumer isn't going to hire them again, but corporations will hire him again and again as long as he finds in their favor. He also knows, that as long as he doesn't steal more than $10,000.00 from an individual, that individual isn't going to spend the TEN THOUSAND PLUS dollars it cost a consumer to go to arbitration, knowing full well his chances of winning are less than slim.
I won't do business with a business that asks me to sign an arbitration agreement, because that tells me they have no intention of dealing with me "FAIRLY"

OOPS! I apologize for ranting again, I will try harder not to do that.

Sorry about not taking time to "spell check" this.
Thank you again,

Joe, in Alabama

O.k. Joe- sorry I didn't get to you til now....but the statute of limitations for fraud is two years from the date of the discovery of the fraud. From what you have posted I think you are outside the time limit....note that 6.99% your current rate is not considered usuary by any standard.....As far as arbitration, I am a defense lawyer and I have had my but kicked in arbritration. Arbitration will give you good results if you have a cause of action. It is not a license to steal and you will honestly come out with more money in arbitration than in court, except for a few Alabama Counties (since you didn't tell me where you live I cannot comment)...Note that the statute of limiations will still apply in arbitration. However, the statute of limitations in alabama for written contract is six years, not one....what I have not been able to determine from your post is whether there was a breach of contract. That of course will depend on the language of your contract

I will say I feel your pain in that when I purchased my home, the seller tried to take advantage...I researched everything and ultimatley saved approximately $6,000.00 in closing costs and at least 1% interest... At any rate...I am still not understanding after all your debts were discharged why you can not afford you house payment- at your rate with PMI and insurance (which unless you have a manufactured home is likely $700.00-800.00 a year) you should be at around $850.00 a month... I had a group to refer you to, but they don't get involved unless the rate is above 12%. Anyway explain to why you can't afford this and I may be able to refer to somewhere else...I don't know your situation well enought to comment on any breach of contract by the lender...there are also federal truth in lending laws with regard to you mortgage....If you let me know where you are, I may be able to recommend a good lawyer...I travel all over the state and I know quite a few folks.

 

[Alabama=Screwed]

Answers for you

Q: note that 6.99% your current rate is not considered usuary by any standard

A: Yes, I agree, however we just got it lowered from 9.5% about a year ago


. Q: It is not a license to steal and you will honestly come out with more money in arbitration than in court, except for a few Alabama Counties (since you didn't tell me where you live I cannot comment)...

A: In my ignorance of law, I assumed telling you that we filed bankruptcy in Blount County would cover that. I apologize. We also LIVE in Blount county, just outside the city of Oneonta.

Q: I am still not understanding after all your debts were discharged why you can not afford you house payment

A: There are three factors.
1. The bank told us they would give us $30,000.00 that would enable us to complete construction on our home. Then, two hours before closing they told us they weren't going to give us the $30,000.00. Instead they were going to HOLD IT, however it would be included in the amount of the loan, so we would make payments on it as though they DID give it to us. They also said as "A CONDITION OF LOAN APPROVAL", we would have to complete construction using our credit cards. Once construction was completed, they would release it to us along with any interest earned.
To be sure you understand, let me say it this way: They said they would give us the money we needed to finish building our home, AFTER we finished building our home!! If that makes no sense to you, then you DO understand.
I guess WE broke the contract, because instead of using credit cards, we borrowed $25,000.00 from my sister and her husband, which we were to pay back when we got it from the bank. When construction was complete, a year later, the bank refused to give us the $30K.
So we're paying my sister and her husband $500.00 a month to repay the $25,000.00 they loaned us. I couldn't bring myself to include it in our bankruptcy. Would you? The way we look at it, our "mortgage payment" is $800.00 a month to the bank and $500.00 a month to "Sis", making it $1,300.00 a month. Please remember we were quoted and agreed to about $500 a month.

2. Three years ago my wife had a brain aneurysm that ruptured. By the grace of God she not only lived, but almost completely recovered, physically, from the stroke it produced, with only a slight limp. However, she is unable to stay focused on a task and therefore unable to work. Her income of about $34,000.00 a year was reduced to Social Security of about $1,100.00 a month.

3. Since bleeding in her brain "simply stopped" on it's own, the doctor didn't want to put her life at further risk by doing brain surgery to repair the ruptured blood vessel. By not doing that, he said, she needs someone with her 24-7, because if she should fall, or in any way get a hard bump to her head, she needs to get to a hospital, and seconds count. Another "deficit" from the stroke is, she is sometimes unaware of things on her left and bumps into them, increasing the risk of a fall. I am unable to entrust my wife's life to a "sitter", nor will I ask our children to bare that responsibility, so I took the role of her "caregiver",which reduced my income to zero. However, until now, I have been able to "make ends meet", as I said before, by using our savings, and selling some things. I had a couple of large collections that I sold piece by piece on eBay. I sold all my "toys" we men tend to accumulate, my fathers diamond ring left to me in his will, her car, our boat, her jewelry, etc. But as I said, there's nothing left to sell.

All is not bleak though, due to a spine spur that sticks a nerves and a series of heart attacks for which I still need one more operation to put in another heart stint, my doctor tells me I should be able to get social security and/or disability, which would be about $1,200.00 a month. I've applied for both, but was told it will be about four months before a decision is made, however with a letter from my doctor saying my life is in danger until I can get Medicare, to cover the operation, that time can be shortened. I also found some other things to sell and mailed a check today that will pay the mortgage thru the end of this month! Looks like it will be a race, to get social security before the bank threatens to forecloses again!

Q: I have not been able to determine from your post is whether there was a breach of contract.

A: The only true "Breech of Contract" by NEW SOUTH FEDERAL SAVINGS that we may have been able to prove is they did not pay us the interest on the aforementioned $30,000.00 that they held for a year, though it is in our contract that they would.
By the way, though they wouldn't give it to us, so we could repay my sister, they DID finally deduct it from the principal of our loan, as though it never existed. They also refused to refund the difference in payments. They only gave us $94K, but we made payments based on $124K, for a year, before they deducted the $30K from the 124.

A 2: There is a possibility of proving something else, because I insisted all correspondences be done in writing via email. THE FOLLOWING EVENTS OCCURRED LESS THAN TWO YEARS AGO.
The president and CEO of NEW SOUTH FEDERAL assigned our complaint to their senior VP/General Counsel. She agreed that they would suspend payments, accrued interest, etc., until the complaint was settled, and we would be allowed to pick up payments where we left off on a new contract. After she intentionally drug out negotiations for over two years, she reneged and said the full amount of all past unpaid payments would be added to the new principal of our loan, increasing it from $114k to over $122,000. I asked her repeatedly COULD she, legally do that! She never gave me an answer. Each time I asked, she just repeated, "We will add those payments to the principal of your loan"
After informing me that with the passing of every day, the principal of our loan was being increased, I began to notice that she was constantly stalling, putting us off and intentionally "dragging her feet." An Example: I asked her if someone at New South would sign the contractor's paperwork, to guarantee payment on some "Punch out" items they agreed to pay. She said "Let me check on that and get back to you in a day or two." Several days passed without an answer. I asked again and again, still no reply. After SIXTEEN DAYS had passed, (and another $600.00 added to our loan) she STILL didn't answer my question, but DID at least reply, with: ''We will do what we normally do in these cases", forcing me to ask "What does that mean!?" Is that a "Yes" or a "No"?" Several more days passed, further increasing the amount of our principal, before she finally gave a vague, but somewhat acceptable, answer.
A BETTER more blatant example THAT HAPPENED ABOUT ONE YEAR AGO:
I told her we were ready to give up and would agree to her terms, just send me a copy of what she wanted us to sign, and give me a day to read it. It was FIVE MONTHS before she sent it Fed Ex overnight with a letter saying our principal had now increased from $122,000.00 to $134,000.00!! She increased the amount of our loan by the exact amount they had offered us to settle!! Further, if we didn't sign the "RELEASE",within 30 days, even that tiny amount they had offered us to "settle" would be with withdrawn.

All the other torts or "wrongs" were committed by THE MORTGAGE OUTLET in Huntsville Alabama, which I must include in another post as this one is too long.


Joe in Alabama

 

[Alabama=Screwed]

"Wrongs by THE MORTGAGE OUTLET

Include:

*Having us sign four truth in lending.

*Telling us NOT to make any payments on the credit cards they were to pay off. Even threatening to tear up our paperwork if we did. Then stalled for four months, causing us to incur late fees, over the limit fees, interest rates to be increased, et. Each month I phoned them telling them the amount we asked to borrow would no longer cover the amount we owed. Their answer was always: "No problem, we'll just increase the amount of your loan". That's how our loan went from $78K to $124K. They put us $48,000.00 in the hole! Hence, the name of the scam, "PUT 'EM IN A HOLE, SO THEY CAN'T SAY NO TO THE LOAN" By the way, $124,000.00 is exactly 80% of what the house appraised for. Isn't it interesting, that is also the maximum amount we could borrow?

*They included my brother and sisters property in with our own as collateral on the loan.

*Against our permission, included a prepayment penalty, and arbitration clause.

*Against our repeated protest, paid of all our INSTALLMENT LOANS, INSTEAD of credit cards as agreed. One of those loans was an SBA loan of $10K with an interest rate of 2.3% that would pay off in 10 years, another was a boat loan of $23K at 7.0% that would pay off in 5 years. They added that $33K to their loan, charging us 9.5% for 30 years,. which increased the amount of interest we will pay on that money by over $44,000.00!

* By paying off our installment loans and leaving all that "Revolving" debt, they lowered our credit score so far that my banker told me: "Joe they lowered you credit score so much that even though your payment history with us is EXCELLENT, I can't let you reassume the loan on the boat" "In fact, I don't know of ANYONE that will make you a loan NOW" This is another common "Predatory Lending" tactic, which keeps the victim from refinancing or going elsewhere for the loan.

* Phoned us two hours before the closing and informed us they changed the rate from 6.9% to 10%, as well as other terms of the contract, and if we didn't like it they would delay closing another month, putting us even DEEPER in the hole!

* They charged us a "Rate reduction fee", but instead of reducing the rate, they RAISED it.

* They charged an "Origination Fee", which should include all other fees, then charged us all the other fees in addition. This is a common "Predatory Lending" tactic called "Unbundling"

There's MORE if you want to hear it, but that all occurred six years ago.

Any thing else you need, or details on any of the above, I will be happy to povide.

Thanks again,

Joe in Alabama

 

[BIRDIE]

When Did You Close On The Loan? What Year?

 

[pojo2]

weenor, Now would it not be against the site rules to start handing out names and numbers?

I'LL TEAR UP YOUR PAPERWORK RIGHT NOW, AND YOUR ASS WILL BE SUNK, BECAUSE WE'RE THE ONLY PEOPLE THAT WILL DO THIS FOR YOU!! NOW, DO YOU WANT THE "G--D---" LOAN OR NOT!!? Being unacustomed to being spoken to that way, I was so flustered I couldn't speak immediately, so he screamed again: "WELL, DO YOU!!? I managed a "yes", and he yelled: "THEN SIGN 'EM, AND SEND 'EM BACK!" and slammed the phone down, hanging up on me.

Why did you not say "drop dead" instead of "yes" right then and there?

Because the reality was indeed no one else would do the loan for you?

 

[Alabama=Screwed]

BIRDIE: Q: When Did You Close On The Loan? What Year?

A: November 2000



pojo2: Q: Why did you not say "drop dead" instead of "yes" right then and there?

Because the reality was indeed no one else would do the loan for you?


A:
We had already started construction on the subject home, planning to build it a little at a time, so that we wouldn't owe anything on it once completed. However, due to the loss of our previous home to flooding, we NEEDED a place to live, so we stepped up construction.
We talked to two banks, but both of them did indeed have policies against making construction loans, if construction had already begun. I made the mistake of telling him that during our initial conversation.
We were close to the deadline to be moved out of our previous home,(Jefferson County BOUGHT it) and already had three weeks invested toward receiving the loan from them. Starting all over at that point, just wasn't an option. This was another piece of information they had and used for leverage.

We seem to have gotten "sidetracked". We aren't looking for, and in fact, have LONG since given up on any hope for justice.
We've gotten over our outdated, "Bible Belt", "country" teachings. It's been proven to us again and again, in the United States, of TODAY, "Right" or "Wrong" means NOTHING, and a "low pair" in Law Books, beats a "Straight Flush" in Bibles, everytime!
Ours, is just yet another case of the "Bad Guys" winning.

I already know WHERE our justice system is going, I just can't figure out why it's in that HAND BASKET!

I'd get off this "soapbox" to talk about my ORIGINAL QUESTION...

If and when the bank goes to foreclosure, Will we have a chance to expose the "PREDATORY LENDING" tactics used, that brought us to this point?
If so, will the fact that the time ran out to bring action have any effect on those facts being taken into consideration? -OR- Would bringing that out, even make any difference?