My husband and I bought our house in Sept of 2003 for 108,000. He had some credit trouble a few years prior so we could only qualify for an ARM. The original loan was with Homecomings Financial w/ a rate of 7.75 for the first two years. We were advised by our broker (her name was Yvonnca something) that it would be fine, just to refi after the two years. So when that time came, we called Ameriquest. They approved us for an 80% refi w/ a 7.25% int rate. We were told that was a fixed rate and a 30 year loan....until we went to the signing. We then found out that it too was an ARM that would adjust to 9.25% in two years w/ a max int rate of 10% ever. Oh and by the way, our loan w/ Homecomings had a 7,000.00 pre-payment penalty!! Nevertheles, young and stupid and wanting that extra 20-something thousand dollars we agreed.
When I asked about the pre-payment penalty with THIS loan, I was told that as long as we refinanced with Ameriquest they would wave it, otherwise it would be 10% of the loan. Of course that was unless they sold the loan to someone else. Let me quote the lady here, she said "Ameriquest only sells about 12% of its loans, so you can be almost positive that they wont sell yours." I should have focused more on the "almost" part. They sold our loan after 4 months....to Countrywide.
Countrywide would not wave the penalty, nor would they approve us for another refi. The payments went up, and up, and up. Long story short, after my husband got laid off and I lost my job in 2006 we tried to arrange a payment plan but couldn't keep up with it. We filed Ch. 13 on Aug. 30, 2006. Our scheduled sell date was Aug. 31, 2006.
Our case was dismissed in Oct 2007, mainly by choice since my husband and I both had new jobs and we couldn't afford the $615.00 PER WEEK payment to the trustee. I knew this meant we would have to get back on track with our creditors and that was fine, I was able willing and ready to get evrything caught up. Since then we have had to surrender both of our vehichles and are facing foreclosure....AGAIN!! Why, you ask? Because the trustee apparently wasnt paying our bills. According to the finance companies they had not gotten any payments for nearly a year. We now owe Countrywide over $18,000.00. Our $108,000.00 house is now $146,000.00 and our payments are $1,642.00 per month. Im sure all of you can do the math, but thats a little more than 11% and its going up again in March. Our original payment was 963.00!!
I swear I am losing it, I dont know what to do. I feel so stupid!! I know this was a long story, but any advice would be GREATLY appriciated. Thanks.