PITTSBURGH, PENNSYLVANIA -- My son got a mortgage loan with "First Franklin Loan Services", around 3 1/2 yrs. ago at a 11.95% interest rate. This company was "Very Willing" to give my son and wife, who were "First Time Home Buyers", a loan at this OUTRAGEOUS rate, promising (in words) that after 2 yrs., if there loan was always paid on time, they would refinance at the lowest rate. My son has a mortgage payment of $1400.00/month for a home that is currently worth $90,000. His payoff balance is $110,000, if that makes any sense. They have NEVER missed or have been late on any mortgage payment.
Due to the economy my son and wife have been through a lot of hardship. My son's student loans are in default. This is due to the high mortgage payment, he is making. He would need a lower mortgage payment in order to continue to pay his student loans, which he can't afford at this time.
"First Franklin Loan Services", claims that they can not give them a "loan modification" because, he is in default on his student loans. So, what is he supposed to do!? Quit making payment on his mortgage, so that he's able to make payments on his student loans!? They don't get it! He can not afford to make those payments! It's just a vicious cycle because if they would have a lower interest rate to make lower payments on his mortgage loan, he would also be able to pay his student loan. "First Franklin Loan Services" is "NOT WILLING" to do anything for them. So, what is he going to do? I guess quit making the mortgage payments and go on "FORECLOSURE". ...End up HOMELESS with his wife and 2 children! Isn't this what is happening to everyone because mortgage companies are tricking you into high interest rates and then they're not willing to do anything for you? It's absolutely crazy!