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First Franklin Loan Services Complaint - Beware Of First Franklin Loan Services!!! - Mortgage Loan
Mortgage Loan - Complaint
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!
SO, BEWARE OF FIRST FRANKLIN LOAN SERVICES!!! DON'T GET CAUGHT UP IN THEIR TRAP!!!
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!
SO, BEWARE OF FIRST FRANKLIN LOAN SERVICES!!! DON'T GET CAUGHT UP IN THEIR TRAP!!!
Comments:
Posted by Obsfucation on 2010-09-09:
When any loan is considered, it is the applicant's entire credit history which is considered, not a single loan. By defaulting on student loans, he has tanked his credit score, and that is going to prevent or impede a refinancing of another loan. It will probably also cause his credit card rates to max out.
The best thing he can do is to work with the student loan folks to see if they can work out a repayment plan that will allow them to stop showing him as being in default. Then your son and his wife need to consider what they can do without to get back on an even keel.
There lender here isn't doing anything different than any other lender would do in this circumstance.
The best thing he can do is to work with the student loan folks to see if they can work out a repayment plan that will allow them to stop showing him as being in default. Then your son and his wife need to consider what they can do without to get back on an even keel.
There lender here isn't doing anything different than any other lender would do in this circumstance.
Posted by Slimjim on 2010-09-09:
"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."
Well yes, he bought the house for more than $110,000 and the value dropped.
Many people now sadly are experiencing difficulties in this tight economic climate. Unfortunately, no institution is going to give a loan, which a refinance still is, to anyone who has defaulted accounts. In fact, that would be an example of some of the "reckless" loan granting our anointed president chastised the banks for last year.
Best for him to just focus on that mortgage and worry about the student loans another time.
Well yes, he bought the house for more than $110,000 and the value dropped.
Many people now sadly are experiencing difficulties in this tight economic climate. Unfortunately, no institution is going to give a loan, which a refinance still is, to anyone who has defaulted accounts. In fact, that would be an example of some of the "reckless" loan granting our anointed president chastised the banks for last year.
Best for him to just focus on that mortgage and worry about the student loans another time.
Posted by Anonymous on 2010-09-09:
Ob, you have the best answer/advice here.
Posted by saj80 on 2010-09-09:
Perhaps your son and/or daughter-in-law needs to find a part-time job to supplement their income. In my younger years, when my wife and I struggled, I often found part-time work to help us get caught up. It is very easy to blame the lender, but your son needs to accept some responsibility for this.
Posted by RestaurantGuy on 2010-09-09:
I'm sorry but I do not see this as the Mortgage lenders fault. Your son took out a mortgage at a interest rate he cannot afford. When he stopped paying on the student loans he destroyed any hope of refinancing his mortgage. I would recommend work it out with the student loan people or he may find a garnish attached to his paycheck
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