Residential Credit Solutions Complaint - Countrywide Agreements sold to Bank of America not honored by RCS
FORT WORTH, TEXAS -- September of 2008, our family fell 516 dollars short on our mortgage payment due to my wife’s lack of employment and the complete depletion of our retirement money. We notified Country Wide (IMPAC) in writing we would be short September, but struggled successfully to make full payments after September 2008.
December 2008 IMPAC sent us a letter indicating we were being granted a 3 month forbearance of my regular monthly payments. Two weeks later a letter was sent indicating our rate had been reduced to 4% for 5 years. At the end of the 5 years the rate would resume to the rate originally contracted.
We felt this was a solution for the 5 years. The 5 years would allow us time to research our options, so we were satisfied with the modification. The subsequent scheduled payments for the new loan by IMPAC started March 1, 2009. We paid as agreed.
During May 2009 we received notification that Bank of America was now the servicer of our loan.
June 2009 Bank of America indicates we are severely past due for making smaller payments and for not making payments during the months of December 2008 through February 2009! I call to explain the agreement sent by IMPAC (AKA Countrywide). Bank of America reversed the late charge, and as always I continued making my monthly payments on time never late at the reduced rate.
June 12, 2009, we received notice our loan would be transferred to Residential Credit Solutions (RCS).
We continued making payments on time. We paid RCS for July and August payments.
August 2009 we received our August Payment back from Residential Credit Solutions (RCS)! RCS indicated the payment sent was reversed because it was a partial payment and that we were severely behind! They indicated once they received information substantiating the loan modification they would accept the payment. I immediately sent documentation provided by Countrywide, but they never accepted my payment. Later that month I received a call form RCS. They explained the loan modification from Countrywide was not done correctly/legally and therefore our loan was severely delinquent. I was perplexed, upset and felt this was unfair.
US Loan Auditors (USLA)
At around the same time period my wife and I were at the Sacramento Fair where USLA had a booth and pursued a conversation with me. After explaining our situation, USLA felt was sure of predatory lending practices and convinced me to hire them and stop attempting to make further payments on our loan. After researching who USLA was and finding no negative information on them, verifying their existence on BBB, and seeing video spots on programs such as Good Day Sacramento on channel 31, we decided we could trust the company.
During the initial conversation with USLA services, we expressed our concern for our ability to handle a mortgage payment in addition to legal fees. Because RCS refused the previous payment, and because the representative indicated foreclosure during litigation was illegal and would prove fatal for the lender, my wife and I decided to hire USLA to pursue our case.
On October 1, 2009 I paid USLA 3,650.00 for an audit of our loan. Beginning December 1, 2009 we began making payments of 1,200 a month to support legal services to pursue our case. But now I’m worried. RCS and our second lender Specialized Loan Servicing (SLS) have stepped up foreclosure proceedings and USLA has not yet filed a complaint or assigned an attorney. Additionally, while recently searching on the internet I ran across the words US Loan Auditors (Scam), which caused me great concern. I’ve read the blog debates. I haven’t been convinced that they are a scam, but at the same time, I’m not sure. I see others indicating the time taken to litigate has taking too long; it seems they have not provided proven cases won yet. Quite frankly all that I have read (and I read all of the comments at that time) make me very nervous and unsure of my situation. In a conversation with USLA sometime in January 2010, USLA indicated I should be assigned an attorney soon (2/6/2010), they also indicated 25% of their cases foreclose.
On February 1, 2010 I contacted both lenders and indicated I would work with them to restructure the loans. SLS, the second mortgage holder, quickly made an offer to write off 8,000 of a 38,000 dollar loan and reduce the interest rate down to 4%. RCS, the first mortgage holder, indicates they are working on a modification, but I have not yet received an offer back.