Mortgage Broker Lied

summerday11

LoanSafe Member
Nov 23, 2010
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Mortgage broker, was told how much I could afford for payment on a home. Found home, was told I could afford it. Loan had to be approved by the bank that owned it (Country Wide) before it could be financed by another bank (World Savings). Sent all income papers to broker and bank statement showing what I receive from SSID and Widows benefits. Told her/him that I did not want an arm loan. Said I would get a fixed rate loan but would go up each year 20 or 30 dollars. Put me in that loan because he/she said my I did not have a credit score. Needed to build up score. Call back in two years to get it refinanced. It was a pick a payment loan. Called back in two years and he/she said I did not make enough to refinance. Back to getting loan approved, both banks approved loan, 2 days before closing broker sent me bank application to sign. Read it and saw it had me working as finanacial advisor making twice as much as I was getting. Called and asked what is that. Said not to worry. So being blind, exicited and trusting I signed. Found out 2 years later from Wachovia that it was a stated income loan. Told them I never stated any such thing. He said I signed it so I did. Transferred me to HAMP. Declined first time because I was not in immenent default. Called back 4 months later and now they said I am declined because I don't have enough income. Told her it is the same as it was 4 months ago. Increased income by renting a room and got approved and payment is 250 more than payment I could not pay without help then. Credit is ruined, no clue how I can keep paying the payment, told them a roommate is not reliable income, they come and go and sometimes don't pay. Said only choice I have is to short sale. No Way. I put half down on the price of the home. Not about to walk away from that. Sorry for such a long post. Just don't know what to do. HELP
 

Evan Bedard

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Told them I never stated any such thing. He said I signed it so I did. Transferred me to HAMP. Declined first time because I was not in immenent default. Called back 4 months later and now they said I am declined because I don't have enough income. Told her it is the same as it was 4 months ago. Increased income by renting a room and got approved and payment is 250 more than payment I could not pay without help then.
Welcome and thank you for joining the community.

I'm sorry but I am a little confused here. Did you have a decrease of income or experience a hardship from the time you applied for the refi and were denied, to the time you have been turned down for HAMP? Also can you please share some more information about your mortgage and the amount of income you currently bring home so we better help you out?
 

summerday11

LoanSafe Member
Nov 23, 2010
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No decrease of income. Income is 1500 a month give or take a dollar. Hardship yes, when I moved in had no debt. 6 months after moved in had to get work done on teeth 6000 that had to be done in pain. Payment is 187 a month. Then had to put tax bill on 2 credit cards. Original mortgage was a pick a payment I could only afford the first which did not event pay all the interest. In 2009 was able to make mortgage but not pay taxes so put on credit card. That is when I called Broker to no avail. Then called Wachovia. Now they approved me for HAMP, payment approx 750 a month. Told Broker I could easily pay 450 + taxes and ins up to 500. Got the loan but did not include taxes and ins per him/her suggestion till 2 years then call back and get a fixed loan with taxes and ins at a payment I could afford. Not sure if I should contact him/her to that I feel him/her is responsible and should be liable or is the bank liable even though it is not with the original bank/banks that approved the loan without ever verifying my income. Shaking head, how can people be so dishonest.
 

lisasxr

LoanSafe Member
Jun 12, 2009
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You identified that this wasn't they type of loan you wanted and signed anyhow? Somehow this is all someone else's fault.
You should have walked away if he/she didn't correct it immediately to the type of loan you wanted. You must do your research as to what your agreeing to and if any part of the deal smells "fishy" cut the line.

I'm sorry you got stuck in a crappy loan, but you could have helped yourself in this situation.
 

summerday11

LoanSafe Member
Nov 23, 2010
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Lisaxr: I think I made myself pretty clear about loan. Did not know it was "Pick a Payment Loan" till I got first statement. You are right, I should of walked away; but I trusted her and never thought someone would do what she did on purpose as she did just to get a loan approved (lied to Banks what I made and my job). Don't you think I would of walked away since I put down half of what the home cost.
 

lisasxr

LoanSafe Member
Jun 12, 2009
936
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SoCal
Have you walked through the HAMP waterfall steps to see if you are indeed a candidate for the program? Target is for PITI payment to be 31% of your gross income.

1st step - reduce interest rate to not less than 2%
2nd step - extend terms of loan to not more than 480 months
3rd step - forebear not more than 30% of existing principle to end of loan term

If unable to get to the target, it would not be modifiable under HAMP.

In-house modifications are available.

What is your current gross monthly income (not including rent)?
What is your current principle balance due?
What is your yearly insurance cost?
What is your yearly prop insur cost?
What is the current term of your loan?
What was the origination date of your loan?
 

sandycane

LoanSafe Member
May 22, 2010
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summerday11,This is your own fault I agree with lisasxr.I hope in the future you cut the line instead of going with the flow.(take responsibility for your own actions)you stated you saw the inflated income and you still signed.I would of thought the light bulb would of lit up.
 

summerday11

LoanSafe Member
Nov 23, 2010
7
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0
Lisasxr: Thank you so much for this outline. I would love to go over this with you if you don't mind.
 

jakelabry

LoanSafe Member
Jun 4, 2009
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Sandycane: I guess the lightbulb was broken.
You know, it's really not that simple. The paper YOU signed contains a statement that YOU attest everything in it is correct under penalty, etc. That broken bulb has left lots of little pieces of glass that can cut you - at worst your signature attesting to that deliberately FALSE information makes you complicit in perpetrating fraud. The best outcome is that any claims you make of fraud against you will be dismissed - that's only a small cut. The goal going forward should be to find a solution that allows you to keep your home and put aside any attempts to assign liability or fault because you would have a very difficult time proving either.
 

lisasxr

LoanSafe Member
Jun 12, 2009
936
6
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SoCal
Summer - post the answers to the questions and I can then give answers (to the best of my knowledge LOL!) that are more specific to your situation.

1 thing I didn't ask before is if your loan is Fannie or Freddie backed? Have you confirmed if either are?
 

SisterB

LoanSafe Member
Jan 27, 2016
11
1
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64
Summer - post the answers to the questions and I can then give answers (to the best of my knowledge LOL!) that are more specific to your situation.

1 thing I didn't ask before is if your loan is Fannie or Freddie backed? Have you confirmed if either are
Welcome and thank you for joining the community.

I'm sorry but I am a little confused here. Did you have a decrease of income or experience a hardship from the time you applied for the refi and were denied, to the time you have been turned down for HAMP? Also can you please share some more information about your mortgage and the amount of income you currently bring home so we better help you out?
 

SisterB

LoanSafe Member
Jan 27, 2016
11
1
3
64
Oh yes the Mortgage Broker is responsible. Because the loans had already been approved before app. was signed and proof of income, bank statements were given. What it comes down to is what the Broker said to the Banks to get it approved and submitted without Summer's signature. I suggest you call an attorney and they will tell you the same thing.
 

bigfrog

LoanSafe Member
Aug 31, 2011
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One SummerDay... your scenario is so common that everyone in the planet knows about, but no one is doing anything about it. Why, because they can't. The government has setup a system where they protect white collar crimes. They are all in it. If you get a lawyer, he/she will only going to take your money and pretend to help you. Ultimately, you'll lose your house which includes your life saving towards the house. You are a victim of a white collar crime. Everyone is going to look the other way. Specially now, your house has gone up in price and easier to sell. They'll trick someone else to get into your house; you'll see.

One of those mistakes, lose all. It is sad, but that's why we have terrorists. That's why we need a president who can do what is necessary, which means he/she needs to speak of the truth. And the truth hurts. Be blunt on what we can do and can not do. It may not be moral, but that's the truth. If we want to take in refugees and illegal immigrants, we need to all pitch in form of higher tax. Someone has to pay for their clothing, meals, housing, healthcare...etc.. obvious, nothing comes free. I guess we can jack up the Debt Ceiling to a point of no return.
 

SisterB

LoanSafe Member
Jan 27, 2016
11
1
3
64
You know, it's really not that simple. The paper YOU signed contains a statement that YOU attest everything in it is correct under penalty, etc. That broken bulb has left lots of little pieces of glass that can cut you - at worst your signature attesting to that deliberately FALSE information makes you complicit in perpetrating fraud. The best outcome is that any claims you make of fraud against you will be dismissed - that's only a small cut. The goal going forward should be to find a solution that allows you to keep your home and put aside any attempts to assign liability or fault because you would have a very difficult time proving either.
 

SisterB

LoanSafe Member
Jan 27, 2016
11
1
3
64
You are so wrong. Don't believe me call the FBI and they will tell you.... It is what was said or given to the banks as the loan was approved before the app was initialed.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
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Jan 14, 2011
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This is quite an old thread, I wonder if the situation has already been resolved or an outcome has been reached.