Loan Application Changed by Lender

[lynnkarban]

Hi,

Of course, I need help.....I am so upset. I have asked GMAC for a loan modification, they said no. I asked for the loan documents in their file. They sent them. I was bored yesterday and flipped through them. I noticed there were two (2) loan applications. I remembered being asked to sign the loan application again at closing and asked why (of the closer). They said it is standard proceedure. I never looked it over carefully. I thought it was my original loan application. Turns out, GMAC changed it. They increased my employee income by recatorgorizing my other income into the employee income box. Same with my co-borrower husband's income. They also increased the total income amount. I am completely stunned. I don't know what to do. This was for the purchase of my dream home in 2005. My "other income" which was investments, has dried up. I need to modify my mortgage to stay in the house. And now I find out they modified/obscured/changed the loan application and induced me to sign it, how was I to know it was a different application. Help!

[ManicMangaManiac]

Lynn,

I hate to tell you this, but this issue of falsified/inflated incomes is all too common a tactic employed by these predatory lenders. I should know; it happened to me too back in late '06 when I applied to refinance the house I inherited from my mom. I submitted an application to the broker stating that my net income was $1300/month. Imagine my shock when I found out that my payments were set at just over $1,000 a month--almost ONE HUNDRED PERCENT of my take-home pay!!!

I didn't protest at the time and wish I had, but at the time figured I didn't have any choice because the broker told me she had had great difficulty in finding a lender willing to finance me (which was probably BS). I was able to make the payments for the better part of a year because I got $32,000 cash out; half of that went to my baby brother for his share of the equity in the house.

I used that money to make the payments but it ran out in October '07 and that's when I fell behind. It wasn't until then that I really took a good hard look at my loan papers and discovered that my income had been falsified and inflated by more than $2,000! Believe me, you are not the only one it's happened to. But I can tell you this, it's sickening that all these lenders are literally getting off scot free while having thousands, if not millions, of people booted out of the very homes they lied and scammed those people out of. This is NOT America! And I am so sick and tired of the governmental BS and bureaucratic red tape and continual lack of real action on its part. When are the evildoers going to face the music on Capitol Hill and get the punishment that's due them??

I just don't get it. Does anyone else get it as to why these scumbags keep getting away with it time after time?
Sally