Loans, Debt & Credit - View Single Post - Is this a Predatory Lending or just a bad luck?

mjanelli · 11-17-2008, 01:21 PM

Following strongly publicized Wachovia commitment to advance women entrepreneurs, twice applied for business line of credit and was declined for insufficient cash flow. Friendly SB officer has suggested home equity line of credit loan as easy to obtain and at much better interest rate. I was approved for HELOC of $247,900 and since I was I already had equity line of $120, 000 with J P Morgan, Wachovia Bank was going to close it. They didn't. When I noticed it, I wasn't extremely alarmed, because we were in middle of attractive contract and were planning to pay off Wachovia Loan.
Recent slump in economy has pushed our business, natural stone and ceramic tile supply, near collapse. While our business earnings were diminishing, so was my home equity, value of my house dropped from $800,000 to $615,000.
With very slow business it is extremely difficult to make payments on all three home loans: WAMU - 310,000, Chase -120,000 and Wachovia 247,000. I will try to pay the first 2, but need help with modifying Wachovia.
Consulted banking expert has advised me that Wachovia Bank, by declining business loan due to insufficient cash flow and pushing us into home equity loan has engaged in predatory lending practice.
I don't want to loose the house because I love it, there is as lot of sweat equity in it and I need the place to live.
For 2 weeks I was trying to obtain the name of the Department (Wachovia) to send the letter for help. Each time I called, I was told that I was 11 days past due and was threaten by foreclosures, etc. I have talked to the most unfriendly group ever.
Finally, I wrote the hardship letter to Wachovia Exec Vice President, Cece Sutton and Chief Counsel Mark Treanor, asking them for assistance finding appropriate manager in their organization to work with me. I didn't receive response from them, but read that Ms Sutton with other top Wachovia exec are leaving for more lucrative jobs at Morgan Stanley and CEO is leaving too. So the ship is sinking and rats are leaving...
I will appreciate your opinion and advise. Do I have a case as a predatory lending victim? Or I and my fellows Wachovia borrowers could file class action suit? Should we approach new owner Wells Fargo?
I am at the end of my rope - need to stop paying Wachovia and can't bear foreclosure. Thank you for response. Maggie

11-17-2008, 01:21 PM	#1 (permalink)
mjanelli Junior Member Join Date: Nov 2008 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Is this a Predatory Lending or just a bad luck? Following strongly publicized Wachovia commitment to advance women entrepreneurs, twice applied for business line of credit and was declined for insufficient cash flow. Friendly SB officer has suggested home equity line of credit loan as easy to obtain and at much better interest rate. I was approved for HELOC of $247,900 and since I was I already had equity line of $120, 000 with J P Morgan, Wachovia Bank was going to close it. They didn't. When I noticed it, I wasn't extremely alarmed, because we were in middle of attractive contract and were planning to pay off Wachovia Loan. Recent slump in economy has pushed our business, natural stone and ceramic tile supply, near collapse. While our business earnings were diminishing, so was my home equity, value of my house dropped from $800,000 to $615,000. With very slow business it is extremely difficult to make payments on all three home loans: WAMU - 310,000, Chase -120,000 and Wachovia 247,000. I will try to pay the first 2, but need help with modifying Wachovia. Consulted banking expert has advised me that Wachovia Bank, by declining business loan due to insufficient cash flow and pushing us into home equity loan has engaged in predatory lending practice. I don't want to loose the house because I love it, there is as lot of sweat equity in it and I need the place to live. For 2 weeks I was trying to obtain the name of the Department (Wachovia) to send the letter for help. Each time I called, I was told that I was 11 days past due and was threaten by foreclosures, etc. I have talked to the most unfriendly group ever. Finally, I wrote the hardship letter to Wachovia Exec Vice President, Cece Sutton and Chief Counsel Mark Treanor, asking them for assistance finding appropriate manager in their organization to work with me. I didn't receive response from them, but read that Ms Sutton with other top Wachovia exec are leaving for more lucrative jobs at Morgan Stanley and CEO is leaving too. So the ship is sinking and rats are leaving... I will appreciate your opinion and advise. Do I have a case as a predatory lending victim? Or I and my fellows Wachovia borrowers could file class action suit? Should we approach new owner Wells Fargo? I am at the end of my rope - need to stop paying Wachovia and can't bear foreclosure. Thank you for response. Maggie