stomped on

[mamie]

My situation is a bit different, but still feel as if I've been stomped on by my bank. In 2001, my husband & I had the opportunity to buy a 2nd home at public auction. We got a really good deal on the sale, but by not having much experience with banks and mortgage, we didn't know to shop around for lenders. We went to our local bank, who also had the mortgage for our main home at that time. We asked for a fixed rate, but he said they didn't offer FRM and that the ARM was better anyway.

I have known this banker for many years and even go to church with him, so I trusted him. It was set for 2 years and then to be done again. We got credit life on this loan even though it was expense - very! At the end of 2 years, we done it again - same banker, a little bit higher mortgage, credit life again also but this time payments would be for 3 years. We always made our payments - maybe late 1 or 2 times during the 5 yr period.

During this time, my husband had heart problems and had to have triple bypass surgery (only 45 at the time). He done fine and went back to work, but had really bad depression and started drinking really bad. We still made all our payments. In 08/2006 when loan came due in full, I called bank and banker said we wouldn't have to renew the loan but could do a modification. Assured me everything would be the same, just without all the paperwork and fees to renew. Same payment and everything. He would get the papers ready and we could just come in and sign. That sounded great to us. He did and we did. I barely even read over the papers, just filed them.

In 11/2006, my husband completed suicide. I was and still am in shock and disbelief and will be forever and ever scarred from this. I called bank to check on the credit life and they said we didn't have it, that it wasn't put on the modification, and anyway it would not pay because we had only had the loan for a couple of months and you had to have for 2 years before it would pay with suicide. In my mind, we've had that loan with them since 2001 and have paid thousands of dollars for credit life. I have done nothing, just trying to make payments and keep the house. Because of the drop in home prices, I still owe almost what it is worth. Some have told me I might have a lawsuit against the bank for the credit life. I really feel as if I've been done wrong too. What do you think and do you have any advise?

Will appreciate any help!! Feel like I'm just swimming upstream!!!

I strongly suggest that you seek local recommendations from trusted friends as to an attorney who is willing to take on banks for bad faith claims. You may well be able to find an attorney willing to take on this matter on a contingency fee basis (my assumption is that you do not have the financial resources to hire an attorney on an hourly basis).

Originally Posted by mamie

My situation is a bit different, but still feel as if I've been stomped on by my bank. In 2001, my husband & I had the opportunity to buy a 2nd home at public auction. We got a really good deal on the sale, but by not having much experience with banks and mortgage, we didn't know to shop around for lenders. We went to our local bank, who also had the mortgage for our main home at that time. We asked for a fixed rate, but he said they didn't offer FRM and that the ARM was better anyway. I have known this banker for many years and even go to church with him, so I trusted him. It was set for 2 years and then to be done again. We got credit life on this loan even though it was expense - very! At the end of 2 years, we done it again - same banker, a little bit higher mortgage, credit life again also but this time payments would be for 3 years. We always made our payments - maybe late 1 or 2 times during the 5 yr period. During this time, my husband had heart problems and had to have triple bypass surgery (only 45 at the time). He done fine and went back to work, but had really bad depression and started drinking really bad. We still made all our payments. In 08/2006 when loan came due in full, I called bank and banker said we wouldn't have to renew the loan but could do a modification. Assured me everything would be the same, just without all the paperwork and fees to renew. Same payment and everything. He would get the papers ready and we could just come in and sign. That sounded great to us. He did and we did. I barely even read over the papers, just filed them. In 11/2006, my husband completed suicide. I was and still am in shock and disbelief and will be forever and ever scarred from this. I called bank to check on the credit life and they said we didn't have it, that it wasn't put on the modification, and anyway it would not pay because we had only had the loan for a couple of months and you had to have for 2 years before it would pay with suicide. In my mind, we've had that loan with them since 2001 and have paid thousands of dollars for credit life. I have done nothing, just trying to make payments and keep the house. Because of the drop in home prices, I still owe almost what it is worth. Some have told me I might have a lawsuit against the bank for the credit life. I really feel as if I've been done wrong too. What do you think and do you have any advise?
Will appreciate any help!! Feel like I'm just swimming upstream!!!

[jennifer]

mamie
I read your post yesterday evening and could not reply as it is so full of emotion in turn filling me with emotion.
I have no experience in the home loan industry except for my fight with countrywide. I have gotten wonderful and very knowledgeable advice here. More so the acceptance and support I find here enable me to keep fighting. When you think you just can not fight another day come here. I recall posts from Doxies I will try to find them for you.
Listen to those folks here who know the stuff about mortgages, they are very wise.
YOU have more on your platter than most. I will keep you in my thoughts and prayers.
jennifer

[jennifer]

mamie
this is one posting I seem to rember more but can not find them will keep looking though.

One recommendation I have that has absolutely nothing to do with real estate is that you find comfort in the forum on the Well Spouse Association site that is focused on "former well spouses." The site is specifically for people in my situation who serve as caregivers for their spouse.

Hope this helps as you were his caregiver of sorts and maybe they can send you were you need to go.
jennifer

[Moe Bedard]

What great support Jennifer, way to pay it forward! Daniel, as always, sound advice.

Dear Mamie,

I am sorry to hear about your unfortunate set of circumstances. It has been tough just reading this. I was going through some issues myself, but you put my issues in perspective for me and really, these issues are nothing to what you have to face daily.

You are a strong woman to even keep going. To have the will to reach out and try and fight show such courageousness on your behalf. I feel all you need is a little guidance and you will be fine.

I am not very familiar with Credit Life Insurance, but I dug up some information to maybe help you:

24/7 Quote US - Online Insurance Quotes, Tips, and News! | Mortgage Life Insurance - Should You Buy It?

When a family moves into a new home they will want to protect their investment, and will want to make sure that the other family members will have a place to live if one breadwinner should pass away, become ill, or hurt. In addition, credit is becoming a more important criteria for risk classification. Since the family qualified for a mortgage, the insurance company can assume that credit is reasonably sound.

Yahoo Answers

Credit life insurance is frequently recommended in conjunction with taking out an installment loan when buying expensive appliances or a new car, or for debt consolidation. Is credit life insurance a good buy?

Credit life insurance is frequently more expensive than traditional term life insurance. Further, if you already own a sufficient amount of life insurance to cover your financial needs, including debt repayment, buying credit life insurance is normally not advisable due to its relatively high cost.

Unnecessary Insurance Policies: Mortgage Protection Life Insurance - Mortgage Rate News

What is mortgage life insurance?

Mortgage protection life insurance will pay off your mortgage if you happen to die. This is different from private mortgage insurance. Private mortgage insurance is required when you get a home mortgage with less than a 20% down payment. This is insurance for the lender, in case you default on the home mortgage loan.

Mortgage protection life insurance, however, is different. This is a life insurance plan that comes into effect when you die. It is often sold as a way for your family to keep the house if you die. However, the only time you would need such a thing is if you do not already have a life insurance plan.

Regular life insurance can cover your home mortgage

When you get regular life insurance, it will cover all of these expenses. Life insurance is designed for a payout to your family, providing money that they can use to pay bills and to live on. One of these bills is the mortgage. If you want to see your family protected, you can get a life insurance policy that covers the amount you owe on your home mortgage loan. That way, the house can be paid off if you die.
It is worth noting that term life insurance offers the largest coverage for the least amount of money. Carefully consider what would work best for you; often a combination of whole life and term life is the ideal for most people. Just make sure that you are covered to adequately provide for your family.

Regular life insurance can cover your home mortgage loan in the event that you die. By carefully considering your options, you can pay less in premiums, but still have the coverage your family needs — without getting an unnecessary mortgage protection life insurance policy.

If you need a good attorney for this try National Association of Consumer Advocates – Consumer Protection Advocates and Attorneys. Please let us know if you have any more question and I apologize that it took sometime to answer you questions.

[mamie]

Thanks so much to everyone that replied. Sometimes it helps to just know someone does care. I'm trying to read up on all the things you all sent to me. Professor is right, if I get a lawyer it will have to on contigency.
I know my situation is sad, but it's very important to me that everyone know that he was a very loving and wonderful man, even when he was sick. We were more in love than anyone ever deserves to be and raised two beautiful and great children who are my strength now!
Again, I really thank you and if you should happen to run across anything in your path that relates to this, please let me know. I'm not real savy on this forum stuff so let me know if I'm not doing it right!! Thanks

[Moe Bedard]

You are doing great Mamie. Keep those children in focus and life in balance. Keep up the good fight and good night!