I was very excited to pay off our HELOC last month (2/12) and checked my balance 2/16 to see $17.15 remaining. I requested a payoff amount and shocked to find it was $13,445.19! When I called customer service they stated that this was additional interest due from the previous holder. Green Tree is alleging 13,428.04 is due from additional interest from GMAC under the heading "Corporate Advance Balance". Going back to check over the paperwork I now see this number was present on all my previous statements, I just never noticed it before. Even running the numbers in my head I could see that this amount is above the interest due even if I had never made a payment. Normally I would write this off as an accounting error and expect a quick repair; however with Green Tree's dubious reputation I am very concerned.
This mortgage was purchased from GMAC by Green Tree ~Oct 09 with 7,266.10k in the balance. The original amount was 35k secured on June 06 (30yr fixed at 8.4% - no prepayment penalties). According to GMAC, which I also have my primary mortgage with, there was no additional interest and the balance transferred was 7,266.10 (confirmed this with three people at GMAC). It has been over 2 weeks and I still have not received documentation from Green Tree showing proof of this balance. GMAC provided documentation in 3 business days. During the course of the loan I have always paid early, paid extra, and have excellent credit. No late or missed payments. I checked my credit report (2/17) to ensure this was secure and found no negative reports.
I faxed a written request to Green Tree for an itemized account of this additional balance and told it would take 3-5 days for a response, then 7-10, and now 30 days. When I confronted them with the information that GMAC stated there was no additional balance I was told that I was held by this mortgage until 2036 and still had interest due. Unfortunately I am unable to speak with anyone beyond customer service and cannot get this issue escalated. When I asked what to do about my next monthly payment (due 3/15) I was instructed to send in the full amount.
I have filed a complaint with FTC, WI DFI, the IL and MN AG's offices, congressman, and in preliminary talks with an attorney to ensure security. I have also notified our local news offices as well as the news agencies near Green Tree's corporate offices. I have also contacted an editor at Kiplinger's and currently waiting for the investigations to proceed.
I have researched several consumer affairs sites and see several people with similar reports of misapplied payments, missing or lost payments, and other questionable processes.
Any advice would be very helpful at this point. I will continue to post updates and hope to report a resolution soon.