Loan Modification Forum - LoanSafe.org - View Single Post

mamie · 04-04-2008, 09:03 PM

My situation is a bit different, but still feel as if I've been stomped on by my bank. In 2001, my husband & I had the opportunity to buy a 2nd home at public auction. We got a really good deal on the sale, but by not having much experience with banks and mortgage, we didn't know to shop around for lenders. We went to our local bank, who also had the mortgage for our main home at that time. We asked for a fixed rate, but he said they didn't offer FRM and that the ARM was better anyway.

I have known this banker for many years and even go to church with him, so I trusted him. It was set for 2 years and then to be done again. We got credit life on this loan even though it was expense - very! At the end of 2 years, we done it again - same banker, a little bit higher mortgage, credit life again also but this time payments would be for 3 years. We always made our payments - maybe late 1 or 2 times during the 5 yr period.

During this time, my husband had heart problems and had to have triple bypass surgery (only 45 at the time). He done fine and went back to work, but had really bad depression and started drinking really bad. We still made all our payments. In 08/2006 when loan came due in full, I called bank and banker said we wouldn't have to renew the loan but could do a modification. Assured me everything would be the same, just without all the paperwork and fees to renew. Same payment and everything. He would get the papers ready and we could just come in and sign. That sounded great to us. He did and we did. I barely even read over the papers, just filed them.

In 11/2006, my husband completed suicide. I was and still am in shock and disbelief and will be forever and ever scarred from this. I called bank to check on the credit life and they said we didn't have it, that it wasn't put on the modification, and anyway it would not pay because we had only had the loan for a couple of months and you had to have for 2 years before it would pay with suicide. In my mind, we've had that loan with them since 2001 and have paid thousands of dollars for credit life. I have done nothing, just trying to make payments and keep the house. Because of the drop in home prices, I still owe almost what it is worth. Some have told me I might have a lawsuit against the bank for the credit life. I really feel as if I've been done wrong too. What do you think and do you have any advise?

Will appreciate any help!! Feel like I'm just swimming upstream!!!

04-04-2008, 09:03 PM	#1 (permalink)
mamie Junior Member Join Date: Apr 2008 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	stomped on My situation is a bit different, but still feel as if I've been stomped on by my bank. In 2001, my husband & I had the opportunity to buy a 2nd home at public auction. We got a really good deal on the sale, but by not having much experience with banks and mortgage, we didn't know to shop around for lenders. We went to our local bank, who also had the mortgage for our main home at that time. We asked for a fixed rate, but he said they didn't offer FRM and that the ARM was better anyway. I have known this banker for many years and even go to church with him, so I trusted him. It was set for 2 years and then to be done again. We got credit life on this loan even though it was expense - very! At the end of 2 years, we done it again - same banker, a little bit higher mortgage, credit life again also but this time payments would be for 3 years. We always made our payments - maybe late 1 or 2 times during the 5 yr period. During this time, my husband had heart problems and had to have triple bypass surgery (only 45 at the time). He done fine and went back to work, but had really bad depression and started drinking really bad. We still made all our payments. In 08/2006 when loan came due in full, I called bank and banker said we wouldn't have to renew the loan but could do a modification. Assured me everything would be the same, just without all the paperwork and fees to renew. Same payment and everything. He would get the papers ready and we could just come in and sign. That sounded great to us. He did and we did. I barely even read over the papers, just filed them. In 11/2006, my husband completed suicide. I was and still am in shock and disbelief and will be forever and ever scarred from this. I called bank to check on the credit life and they said we didn't have it, that it wasn't put on the modification, and anyway it would not pay because we had only had the loan for a couple of months and you had to have for 2 years before it would pay with suicide. In my mind, we've had that loan with them since 2001 and have paid thousands of dollars for credit life. I have done nothing, just trying to make payments and keep the house. Because of the drop in home prices, I still owe almost what it is worth. Some have told me I might have a lawsuit against the bank for the credit life. I really feel as if I've been done wrong too. What do you think and do you have any advise? Will appreciate any help!! Feel like I'm just swimming upstream!!!