ILLINOIS -- I have recently been questioning our mortgage company and its lending practices. We were first time home buyers and went to a finance company where we had done small loans with before. We trusted these people but now I am really wondering about things. We received just one document at closing, which was an open end mortgage. We had to meet with the manager on a Saturday, and we were rushed through the signing. Basically it was a sign here, initial there, we will take care of the rest the next week. Well, I finally after 7 years got most of the documents from our loan. We have been requesting this information for the last 2 years. We have now found out it was a HELOC mortgage. We finally received a good faith estimate, which they also call their settlement statement, basically a range of what we were supposedly charged. Our interest rate is 15%, which was not what we were told in the beginning, but we paid points to have it bought down. We have a pre-payment penalty, a balloon payment in 2016, and a mandatory arbitration clause. There was not a 3 day right to cancel, a truth in lending statement.
We bought a modular home which cost $41,898.00 now we find out the HELOC states our initial line of credit was $49,941. and the initial advance was $47,178.88. So where did the approx. $6000.00 go? We have made payments for the last 7 years and I requested a payoff statement as of December 2008 and it was 50,521.68 with a per diem interest 15.90. We were also charged for a single premium insurance at the cost of $1160.00 which we were unaware of. I'm not sure if any of this makes any sense to anyone, because I am having a hard time understanding it myself. We were very naive buyers, but we really felt secure with borrowing from this company, and expected them to be open and honest with us. We had not questioned any of this before, but my husband became very ill a couple of years ago, and we were told we had disability insurance, which is a whole other story that I won't go into. My husband became disabled and we waited 18 months on SSDI but got behind one payment during his illness.
When I try to talk to the branch manager about any of this she threatens foreclosure, which she tells me, they can make us move out immediately. I have been trying to read some info on the net about HELOC's and open end mortgages, but I am starting to get more confused, the more I read. Am looking for anyone else's input if at all possible. Thanks