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The Lending Connection Informative - Mis led during Home Refinance now losing it all

Review by tizmyn on 2007-04-07
After 12 years in our home we stand to lose it now. A life of ups and downs led to really bad credit. The last few years we finally got to where we could get things paid and start rebuilding. Our current mortgage was a disaster due to being forced to go there to avoid foreclosure in the past. We got a lender to work with us 3 months ago. They promised and took a $200.00 prepayment called a "Lock In" fee so that our interest wouldnt change throughout process. Long story short. There was multiple errors and lost time due to the lenders agent. He wouldn't call or follow up and days would pass. a month into this and I asked about the current mortgage payment, he said it would be a waste to send it because we were closing soon. then more issue with him communicating with title and getting closing docs prepped and sent then we signed and it went into another month another payment due and again dont send it as it is being funded soon. Well during our 3 day wait period the lenders review the current mortgage and guess what? It showed as being over 60 days almost 90 and within a few days 90. so they tell me that it dropped my credit rating and now they cant finance me. OH MY GOD! Now our current company has us in default, nobody else will touch us and Lending Connection is rewritting our loan as a "Kind gesture" with an additional fee and raised interest rate due to credit rating being lower now. Resulting in thousands of dollars lost to us directly due to their Agent mis-leading us and dropping the ball with the time issue. Can anyone help? Advice? We have contacted a attorney and thank goodness the Agent was stupid enough to email all communications so we have documents showing every single minute of communication. There is one manager there that is trying to make it right but it sounds as though he may be leading a failing effort. That being the case we will lose our home. Then we fight
Comments:8 Replies - Latest reply on 2008-08-14
Posted by juders on 2007-04-07:
it makes me sick these lenders have been so deceptive to the people who can least afford it!
Posted by tizmyn on 2007-04-07:
If I had the assets to sell or to borrow against I would just send my current lender the $6800 they want to cover all the fees and stuff and just tough it out with them for another year or two, but I am putting my wife through school and have 2 children on my disability retirement and what I can earn working part time. So coming up with another 6 or 7 grand is no reasonable.
Posted by tander on 2007-04-07:
You should of been making your house payments right up to when you closed, you never know what could happen or how long the loan will take to close or if you'll even be approved. Lending Connection SHOULD NOT of been telling you not to make payments.
Posted by tizmyn on 2007-04-08:
Oh okay, well that was really quite helpful. That is really quite easy to say in hind sight or as a outsider looking in, I truly just let my judgement get clouded by the hope of finally reaching a goal our family had worked to achieve for over a year and a half. At this point Daddy (Me)has literally allowed a con artist to come into my childrens lives and possibly take away the only home they have ever known. What do they take away from this? Is Dad weak, less a hero than we thought? Or maybe Dad just failed us and now we have to lose our security and be stripped of our home and security.

Yes I should have ignored the Agent at Lending Connection, however whats done is done. At this point if our requested needs are not properly accomodated with this "new" paperwork I am certain that there will not be a shortage of freinds out there that my family can count on to offer guidance. We have already recieved so much in the way of where to look and what documents filed in which states would help. I honestly think that this may be an interesting story to follow. I have also found that there is many many more people just like my family that have been and will be taken advantage of or mislead either by a lender that lacks knowledge or is just plain greedy. I plan to do what I can to offer help to others as many of you have done for me. I rather enjoyed reading the "truth in Lending Act" and the many sections of "RESPA", it was/is invigorating. I have already requested more books online. I welcome any advice or recommendations anyone has for me as to where to gather more information. Our best defense is to know more or at least understand more than the ones that would have a family of 4 thrown out of their home simply to make another 2 or 3 grand on the deal.

I'M COMING, Be very careful.
Posted by grandma005 on 2007-04-08:
You should of know to save the house payments instead of spending it. You would of have to pay catch up some where if not to your current lender then your new one. Now who have to find some one to lend you the money or loose your house. It is quite sad when people don't use common sense.
Posted by tizmyn on 2007-04-08:
It is equally as sad when persons make statements of ignorance. I was asured that we were closing within days.... you know what? nevermind. There would be no "catch up" with the new lender as it would be a fresh start and all our former debt was to have been paid as well. As I stated, I understand that I fell into a known trap (keep in mind that it is known by those that have been in it) not by those of us that do not live in the world of deception and greed. Now if anyone out there has anything helpful to say I welcome the comments from the bottom of my heart. I could use information on how to avoid foreclosure, how to file bankruptcy without losing out home even with a chapter 13 in history discharged in October 1998, info on how to refinance quickly with destroyed credit and mortgage history, info on challenging a brokers right to practice based on ethics violations, info on how to build a log cabin in the mountains (so I have a place for my children to call home). lol
Posted by tizmyn on 2007-04-12:
Update on our current status with this issue.

The Lending Connection misled us, they changed the original agreement in so many ways that of our cash out from the deal we were to have ended up with less than 40%. Guess what? They explained it to me as if they were doing me a favor. I could not find a single person there that would be honest with me about this deal. I came to find out that they were brokering our loan which they we not to have been. They had sold us to Countrywide several weeks before we even had signed anything. They had already set it up with these raised fees and lowered payouts prior to everything being agreed upon. It was a complete sham. So many lies and TILA violations. I have every single email that proves my claims, the ones were they tell me not to make my current payments, where I am to not be involved in choices that ultimately led to thousands of dollars in loss to me. More later.
Posted by alxwtts1 on 2008-08-14:
this is a duplicate. they did the exact same thing to us i wasnt late on my mortgage they said the whole thing would be done in 10 days not to pay the mortgage its almost finished!! finally at the end of the month i got the paperwork they had changed the fees, and the terms of the loan they rush you saying this is all standard stuff we need to hurry and get the papers back to the title people etc. they broke a lot of rules im currently looking into taking action against lending connection.Im not as stupid as this sounds they are just good con artists

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