Just recently, one of our clients that we were working with to negotiate a loan workout with Homecomings Financial got a bad deal. After countless calls and offers and counter offers, we finally got Homecomings to agree to a workout provided that the clients pay $2,000 upfront and pay one month of the regular payment and then they would do a “loan modification”. So the client went ahead and paid the $2,000 and the regular payment. However, when we followed up on this case, Homecomings came back a “loan modification offer” that basically required the client to continue to make the original monthly payment amount which is what the client could not afford in the first place.
Now this client happens to be an elderly African American couple here in Georgia and their loan is a perfect example of how lenders have preyed on the elderly, poor, uneducated and minorities. You see, the loan they got was based on a bad appraisal that inflated the value on their home and provided incorrect information on the home. The appraisal used a mobile home to valuate the property’s value and stated that the home was on a sewer system when is fact the home uses a septic tank therefore causing the value to be $30,000 more than the house is worth. Needless to say our client’s home is now upside down and without the help of the market downturn but from faulty lending practices.
If I were Homecomings, I would reconsider finding a better way to resolve this case. After all, the alternative solutions would not be favorable for them.
It is clear the our client can not afford the mortgage payments so the home will eventually go into foreclosure and Homecomings will have a home that is over leveraged and will probably never be sold unless they give it away and take a huge loss. Let us not forget the legal fees to foreclose and the cost to maintain the house until it is sold. Not the best option.
Our client could also file suit against Homecomings and could end up having to let our client stay in the home without collecting any payments based on how the loan was originated. That really would not be good for them.
Either way, letting the house go into foreclosure should be the absolute last option for Homecomings and other lenders in general. The downside to foreclosure are just too costly.
Now this client happens to be an elderly African American couple here in Georgia and their loan is a perfect example of how lenders have preyed on the elderly, poor, uneducated and minorities. You see, the loan they got was based on a bad appraisal that inflated the value on their home and provided incorrect information on the home. The appraisal used a mobile home to valuate the property’s value and stated that the home was on a sewer system when is fact the home uses a septic tank therefore causing the value to be $30,000 more than the house is worth. Needless to say our client’s home is now upside down and without the help of the market downturn but from faulty lending practices.
If I were Homecomings, I would reconsider finding a better way to resolve this case. After all, the alternative solutions would not be favorable for them.
It is clear the our client can not afford the mortgage payments so the home will eventually go into foreclosure and Homecomings will have a home that is over leveraged and will probably never be sold unless they give it away and take a huge loss. Let us not forget the legal fees to foreclose and the cost to maintain the house until it is sold. Not the best option.
Our client could also file suit against Homecomings and could end up having to let our client stay in the home without collecting any payments based on how the loan was originated. That really would not be good for them.
Either way, letting the house go into foreclosure should be the absolute last option for Homecomings and other lenders in general. The downside to foreclosure are just too costly.
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2 comments:
Homecoming Financial has given us problems from the first year we financed our home with them. They attempted to foreclose on us by confusing us with another cutomer and we wound up with huge fees. The STOPPED accepting payments from us, even through Western Union. For 5 years now our interest rate keeps jumping, our payment get higher, and they even placed a forced insurance policy on us even though our insurance agent billed them.
We have enough proof of unethical practices on behalf of Homecomming to sue. We were even told to let our home go into foreclosure and bring our evidence to the courts by the lawyers that Homecomings used to forclose on us.
I tried to get them to do a modification on the loan and I was hung up on.
We are not behind on our payments but the payments are huge. We still have about 50k equity in the house and are trying to sell but the market is horrible now. So we are stuck.
I tried emailing a law firm to get into a class actions suit but got no response. I concrete evidence, I saved every corispondance; even the paperwork from the people who were in foreclosure that they confused us with. The faxed it to me.
How can I get anything accomplished? Homecomings Financial provides us customers with a call center where the outsourced employees have a script to read from.I cant get anywhere and can not afford a lawyer.
janinern2000,
Would suggest that you file lawsuit yourself. That will get their attention. We recommended that our client to the same. We do offer a kit that shows you step by step how to do this. Feel free to log on to http://www.ransomllc.com/fightforeclosure.html for more information.
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