[Ledeen]

I was sold a horrible Option ARM Mortgage by a Broker through Downey Financial (Downey Savings)


I was flat out LIED to regarding the optional payments, example I was promised the "Interest Only" Payment option would be $2,900 - when in fact it turned out to be $4,200! The Principle and Interest Payment was supposed to be about $3,300, it ended up being 4,900 at the FIRST statement.

Plus after looking at these docs I see the Broker added 10K per month as MISC Income! (he did this AFTER I signed the paper, because it certainly was not there when I filled out the income and expense form)

He also was paid 25K it appears by Downey, the total loan when it was written was 656K. It seems that’s way too high if its supposed to be no more that 1.5% on a YSP commission.

No where on my loan docs does it state what these Optional Payments would be ONLY the minimum payment - the one where the bank takes your house- is documented.

I was told it would have NO Prepay penalty, but the loan docs state "There MAY be a Pre Pay Penalty" what the heck does that mean?

I trusted the broker - (BIG MISTAKE) he had done 2 refinances for me and always been honest, loans were what he said they would be. I only had done 30 Year FIXED mortgages, never an ARM, I did homework I knew if I paid the minimum I would run behind, and my intention from the first was always to pay the Interest Only payment, and at times the principle and interest option, finish my Bath Remodel and sell the house.

The loan at the time I was told was a 70 or 75% LTV, so I thought I was safe even if the prices fell somewhat.

I have been calling Downey over and over to try to get them to modify the loan before it resets. THey say they sold the Loan to an investment group, and the new owner won modify the loan.

Its Greenwich Capitol and Wells Fargo as the Master Servicer. Only Wells Fargo as the Master Servicer has the authority to modify the loan.... and I cannot reach them, nor according to Downey will they modify the loan.

My question is IF there are actually TILA or RESPA violations who’s responsible and who can do anything since Downey, who I would assume would be somewhat responsible sold the loan, so they cannot do anything to it. Wells Fargo can modify the loan, but since they did not do the loan docs, I don’t think they’d be responsible.......

The brokers firm closed shortly after the beginning of the housing downturn, he now works at another small Mortgage company but don’t think he as an individual has assets to go after.

I think he should go to jail for misrepresenting this loan as he did, but that wont help me keep my house.

Last, since I am putting every dime I make towards the mortgage trying to stave off the reset, since when that occurs, I will never be able to pay it. But the lawyers want 3800 retainer, and unless I go take another loan somehow I simply don’t have it. Does anyone do payment programs for those who still have good credit?????? My MID Fico is still at 700.....

HELP HELP HELP>>