TA in Maryland sent this extensive and well-written report: We purchased our home on December 4, 2004. We purchased our home from Daniel and Deanna Johnson who purchased it in September 2004. It was a “For Sale By Owner” which went through a service we found on line. We first rented it from them for 1 month and then after talking to a loan officer who said that through “creative financing” we could afford the home.
My husband had just started a contractor position for $75k and I an Administrative position $42,500k. So after speaking with 7 loan officers who said they “could get us in a home,” instead of renting for a year we went with the option to buy.
Upon the advice of the loan officer and the mortgage company underwriter from Freemont, we didn’t use a Real Estate Agent in the transaction.
Twice the closing was cancelled. In hindsight we should have been seen this and many other things as warning signs.
Come closing day the loan officer (who was in the hospital) and the lender representative (who was on a 2 week vacation) weren’t available.
The Person at closing (don’t know who he represented-this was his 3rd closing he stated to us) stated that they couldn’t answer any of our questions. That we had 72 hours to change our mind, and if we had any questions to contact the loan officer or the lender representative (both who were unavailable.)
The loan officer was in the hospital for almost January and the lender representative wasn’t available until the week of Christmas.
1) The loan officer told us that through “creative financing” we would get: an interest only loan; with a 1st and 2nd loan; didn’t have to show any financials just proof of work and salary; that it would be an ARM with a moderately high interest rate, but after 6 months we could refinance and get from under the loan. In the loan was included the insurance for the home from Balboa recommended by them, and the taxes at first, but it was changed the day of the closing.
When we talked to the lender representative and loan officer they again said not to worry that within 6 months this loan could be refinanced and terms would be changed.
We being first time owners believed them. When 6 months came, our name was not on the title of the home, the loan had been switched over to Saxon and there was a prepayment penalty that we weren’t fully aware of during the closing.
The previous owners contacted us from California and said they were receiving tax paperwork on the house. Danny (redacted) had tried to contact Axis Title Company several times, but with no response. He had in turn reported them to the better business bureau 3 times. He was now contacting us.
I called Axis and spoke to the owner who investigated the issue. He said that it was sitting on one of the processors desk. That they had several turnovers and it was a part-time business. That they would process the paperwork and pay the taxes since it was an original part of the loan. The taxes and titles were finally turned over to us in November 2005.
Since we weren’t on the title, we didn’t legally own the home until December 15, 2005 (see attached.) Thus, inhibiting us from refinancing to get from under these circumstances.
In addition to that we were told that our loan officer had mental issues (suffering from depression, hearing voices, and either bipolarity or schizophrenia), the lender representative was released from duties and was looking for employment with another company (subprime lender was going under and he was one of the first wave of those let go), and that we had a prepayment penalty that precluded us from refinance.
2) We had to file bankruptcy because for the 2nd ASC-subprime of Wells Fargo we had entered into payment arrangements with both Saxon (1st) due to my husband’s father and sister taking ill. We were making our payments, but ASC had taken a withdraw that hit before our direct deposit. ASC was paid a day later (see bank statement,) and said that we broke our arrangement and they decided to try to take our home.
We weren’t behind on the first, and had called ASC and spoke to a representative and faxed over proof of withdrawal. They told us that since there was no way to trace who took the monies from the account they wouldn’t accept it as proof. Our bank statement attached clearly states mortgage and the 1st wasn’t that figure only the 2nd.
3) We ended up filing bankruptcy to keep the house from being
Foreclosed on by ASC (Wells Fargo’s subprime unit.) We had it dismissed the first time because Aaron’s father passed.
The 2nd time we filed bankruptcy we were told that if we paid $17K + we would be caught up in December 2007. My husband had to leave his job to help care for his father and his inheritance was tied up in the courts. His mother was denied survivor benefits for which she had to go to Federal Court to get reversed due to a typographical error.
My husband went to court and per the letter from the bankruptcy as you can see attached that we would be made current. With that being said my parents and my mother in law came together and gave us the $17K so that we could get out of bankruptcy (BK) and get back on the regular payment plan.
Two weeks after the payment was sent in we received a letter for foreclosure. When we spoke with Saxon they said that misinformation was given to the court and us. That it only brought us current until December 2006, and not 2007 as stated from the bankruptcy court.
4) At that point we were told that we could ask to see if the
loan could be modified and they would send us the paper work (they just sent us a letter stating the same thing and we spoke to some one who again stated that we could do a loan modification under the stimulus package.) We filled out the paperwork and sent it in. We were told that someone would get back to us with 15 days.
They didn’t tell us at the time that the house was in foreclosure status and that it was to be sold with in 10 days. We contacted Saxon 6 times, resent in the paperwork they had previously asked for, contacted KAIROS to intervene.
Civil Justice was called in because they felt it was more of a fraud case with our loan as opposed to a foreclosure issue but because Bern & Stern was in Federal Court that day, Diane could not get in touch with them. I therefore had to file for a BK under my name.
Meanwhile our mortgage payments are ballooning, the arrearages with all the legal fees (which is in excess of $45K.) My lawyer Tom Gill when he did the figures stated that between his and Saxon there was a $17-25K difference and we wanted to know where and how they were tabulating their figures.
Several times we attempted to get Saxon in court so that we could get this loan reviewed by the judge, but Saxon would postpone until the BK was dismissed due to decrease in income.
5) I then contacted Governor O’Malley’s office, Marcia Tompkins, see correspondences-to investigate the fraudulent activity on this loan. She has been helpful in getting some of our questions answered where Saxon Mortgage Services would not give us straight forward information in the past. They have been deliberately misleading us when we call.
For example, we were told that our loan couldn’t be modified per Saxon in September 2008 (ranked in the top 10 as one of the predatory lenders in the country.)
I also enlisted the assistance of NACA who tried to get this loan adjusted or a repayment plan. NACA was told in December 2008 that Barclays owned the loan-which was our first time hearing those in over 4 years. We had asked that question on several occasions when we wanted to do a loan modification but was never given an answer.
With the repayment plan NACA helped initiate Saxon sent us pay work with Chase Bank of Texas. This immediately sent up a red flag to us again as we are unaware of this company, and I contacted Marcia Tompkins to investigate. Saxon sent back another letter stating that is again was a typo or mistake and that Well’s Fargo owns the loan.
I contacted Saxon and asked for the Loan Modification Program as States Attorney Richardson suggested. We sent them our paperwork and was told conflicting information on 5 occasions.
First we were told that if we made the payment during the month, we would not be penalized. Then we were told that as long as we had the payment postmarked prior to the 1st of the month that we would not be penalized. Then we were told that all payments had to be there on the first or we would be penalized. Lastly we were told that if we had any changes in income, status, etc to let them know and they would adjust the information.
We did all those things, and we were declined due to failure of payments on the first of the month which we did.
I informed them that I had a decrease in my net is $977 bi weekly, that our daycare went up $200 and our car note went to $499. Those things were not taken into consideration.
In the interim, the lawyers for Saxon asked that the dismissal of the foreclosure be deferred and accelerated during this same time. Their reasoning that we were trying to have a loan modification with our mortgager and they were protesting that.
Consequently the deferment went through and the denial of our loan modification went through – guess what – on the same day. Now they want to proceed with foreclosing on our home again.
We have contacted NACA to have them negotiate the Home Save Program for us and order a Forensic Audit of our Loan. Something we have been trying to do since the beginning. This is corruption at the highest level and Behr & Stern who lobbied for monies for bailout, received it from the Federal Government in order to help out borrowers.
I feel that I have just paid taxes to help them foreclose on my home.
I am not a lawyer, but something isn’t quite right with all these typos, mistakes, different lenders, services, loan holders, etc. Every lender we have spoken with concerning this loan tells us that it is the worst loan product they have ever seen.
All supporting documentation is attached along with the original loan documentation. Just that fact that we were denied our right to refinance after 6 months because the house wasn’t legally ours is enough to start the ball rolling. It wasn’t legally ours until November 15, 2005 at which time we were told that the prepayment penalty that we were not told up front would have us in an upside down status.