JM in Wisconsin said: “We financed our home in Jan.27 2009, With Beneficial Wisconsin Inc. 1981 E. Mason Street Green Bay, Wi 54302. When we financed the loan we did most of the arrangement over the phone, because we were 100 miles from lender. We talk about the interest rate and they started off saying that it would be around 6% because the credit was tight and money was hard to get.
We needed the loan and at the time they were the only creditors that we could borrow from, we are self employed and don’t have any way of documenting our income, but that didn’t make and difference to them, they said that they could just use our taxes to verify our income. Now looking back over the GFE there was only a few things listed on it, but we didn’t know what was supposed to be on it.
There was only a few things on it, no interest rates, no finance charges for the loan, but they did have the loan originator fee ( Fee/Points (loan Administration fee), But not a break down of these fee’s. We started the loan process Dec. 16, 2008 and didn’t close till, Jan. 27, 2009. When we arrived at Beneficial office, we had a big surprise. The interest rate that we we talked about 6% with a guaranteed rewrite within 90, with no extra cost to us, went from 6% to 10.2% Yearly Contract rate.
By this time we really needed to get the money,so with the free rewrite and interest rates dropping to all time lows, they convinced us that within a few months our interest would rewritten to to low rates. So with this big surprise of the higher interest and not much we could do about it we sign the loan. The manager and loan officer both kept and telling as that we had 90 days to rewrite the loan with out any extra cost.
Then we got another surprise, the loan cash funds that was supposed to be given to us as a cash out, were written out to unsecured creditors that had a 0% interest, that we didn’t want to pay off at that time, with secure funds But they told us that they couldn’t take the checks back and rewrite them, if we wanted to that they would have to start the loan process over and they didn’t know how long that would take.
So we accepted the loan, but after a few days we had 2nd thoughts, and we refused to send the checks to the unsecured debtors. We called Beneficial and talked to the loan Officer Ryan Vogels and manage Michael Kobriger, over the 2 weeks, Both wouldn’t do anything, and told us the check had to be sent to unsecured Debtors named on the checks. On Feb. 17 we sent the check back to Beneficial, we endorsed the check and wrote for deposit only Beneficial Wisconsin Inc. Along with check we sent a request for the check to be rewritten to us.
Along with this request we ask them to send a check for the insurance premium that was taken out of loan proceed, and never applied to the mortgaged home. HSBC applied it to another property of ours. We didn’t hear anything from them, no check. When we received our monthly statement we didn’t find the translation for the deposit, that we thought since they didn’t rewrite the check, that they deposited against the loan balance.
We called and were asking for our rewrite of the loan and to find out where the deposited check was, finally we received a check for the insurance and 3 other checks for unsecured debt March 22, 2010. All this time we were writing and calling,Beneficial requesting the free rewrite that was promised at closing. The correspondence were answered with a form letter that never answered our questions.
Finally we were sent a letter saying we can’t rewrite the note because Beneficial was closing their offices in Wi. and were not writing loans in Wi. When we receive the checks back written to insecure creditors, we endorsed them again and sent them back with deposit only to Beneficial Wi. Inc. And told them to apply the funds to our loan so they applied the funds to 4 months payments. All this time the money never left the bank, but we were charged interest on the funds. During this time the economy got real bad and we didn’t have much work.
With the interest at 10.2% and Beneficial refusing to rewrite and refusing to give us information on there hardship program, we stopped paying our loan. All this time we kept on writing and asking for the free rewrite and rules on their hardship program, getting the same form letter asking us to send them the same information that we sent and faxed a few times, and getting the response that we do not qualify, no reason why. We were still currant on our loan in Aug. and in Oct. 17 we received a Pre-foreclosure notice. We kept on writing letters requesting help but nothing. In Dec we wrote 2 letters asking them to send us our voluntary escrow fund, but they wouldn’t send the funds to us.
In Feb. 16 they served a summons for foreclosure. On the 2/12/2010 the balance due on summons was 4460.00 less than on the billing statement for the same dates. I would have to assume that the summons was correct so if there was an error for 4460.00 and if that was applied to loan all the way along we wouldn’t have been delinquent until after Nov. 1 so a letter for foreclosure was sent before we were delinquent. If we would had been able to get a rewrite we were promised we wouldn’t have been delinquent at this time. The funds that we paid, would have paid our loan till April. We had another loan that dropped down to 4% in Feb. so the cost of money was way down in a month.
They don’t have a judgment for foreclosure yet. But I don’t know what to do we can’t get a loan, our credit rating was ruined when Beneficial put us in default.
The things we are finding now after researching the state statue 428 and U.S. statue TITLE 15 > CHAPTER 41 > SUBCHAPTER I > Part B > § 1635
Here are some of the violations that we are finding. GFE doesn’t have any interest rates and fiance charges on it, no disclosures,no explanation of Origination fee’s, Settlement statement doesn’t have any interest rates or fiance charges, break down of Prepaid finance charges, Billing statements are higher pay off than Foreclosure summons declared debt same date. We didn’t show prof of income on the application, Right to rescind form is confusing with words taken out of context, No Disclosures published on the truth in lending disclosure. APR. and Finance charges, total payment on TILA disclosure, exceeds the tolerance.
TILA Violations Beneficial Wisconsin Inc.
1. TILA disclosure APR. rate incorrect.(Title 15, chapter 41, 1605 e, finance charge)
2. TILA disclosure Finance Charges incorrect.
3. TILA disclosure Amount Financed incorrect.
4. TILA disclosure Total of payments incorrect.
5. Calculation 1 – 4 incorrect, Title insurance, Hazard insurance, Property tax,
escrow were included in finance charge calculations. (Settlement Statement)
6 TILA disclosures were not posted, (GFE, Closing statement, and Loan agreement.)
7. Beneficial required us to use there title insurance, appraiser, ect. Page 2, bottom of
GFE (violation section 8 RESPA.)
8. Billing statements were incorrect.
a. Payments were paid Bi-weekly, interest was amortized monthly. (Monthly billings)
b. Payments were made without authorization from voluntary escrow. (2/12/2010 bill)
c. Unexplained advances. (monthly billings)
d. Statements were monthly, and should have been bi-weekly. (181,363.15 difference)
e. Payments received, but not posted on a timely bases. (May billing)
f. Interest was charged from 01/27/09 and checks were not issued till 01/31/09.
9. Willful or knowing Violations, TILA, TITLE 15 > CHAPTER 41 >
SUBCHAPTER I&II and Wi. State statue 428 violations.
a. Balloon payment. (4,386.17 left to pay after 360 payments)
b. Advance payments. (Applied loan fund 4 months payments.)
c. Repayment Ability. (Income was not documented)
d. False Statements. (Promised a free rewrite)
e. Prepayment clause. (422.209 prepayment more than 2% Amount Financed)
f. Disclosure to customer. No full disclosures (428.208 disclosures)
10. Good faith estimate GFE didn’t include Interest rate, finance charge or payments.
11. Settlement statement didn’t include Interest, fiance charges, and payments
12. Foreclosure is not in compliance.
a. Note is conditional, it’s not a negotiable instrument
1. UCC Article 3 3-104 a. – 3, & b , UCC Article 3 3-106 a. I , II
b. Loan was not delinquent at time notice was sent. (Accounting errors)
? Documents that back up, making note conditional and not a instrument.?
Loan agreement ?Note? – Page 6, Exchange of Information, Credit Bureau Reporting, Telephone Monitoring, Insurance, – Page 2. statements, a. Assumption, b. You are giving us a security interest in the real property as described in the mortgage and located at: (These clauses have nothing to do with payment, this makes the note conditional and not an Instrument.
13. Note in summons and the one sent by attorney are not the original that we signed
( Our copy’s have loan no. on them, summons doesn’t)
14. Beneficial Wisconsin Inc. was sold to Beneficial Financial I Inc. on Oct. 1 2009,
we were not sent notice. Who has to start foreclosure?
15.We did not receive a signed copy of the note, but we received a sign document of the Mortgage, but not the filed copy. Page 3 par 14 mortgage states we will receive a signed copy of both. 422.305
16.DFI-WCA ? 1.263, stat. 422.202,(2), d Appraisal cost had to be Paid, January 7, 2009. didn’t receive appraisal until closing. 01/27/2009.”