     BARRY BURDUE (Bear) | Thursday, October 05, 2000 - 09:35 pm 
I am interested in legal advice to end my nightmare of a loan with Altegra Credit Company. Altegra has been taking my 2nd mortgage payments for Loan Zone (a subsidiary of National City Bank),technically, I dont believe they have bought it, just taking the payments for "better record keeping" as stated by Loan Zone. This was a bad idea, I used to be able to run to my local National City Bank and make payments as at least verbally agreed upon during the signing of the papers. Six months later, I now as of 06/01/00 must mail it in to Altegra, Pittsburgh,PA. from OH., thus encountering "at their convenience" processing. I am mailed statements and a payment coupon every month. The payment is due on the 15th with a 15 day grace period. They have cashed my check on at least three occasions between the 25th and 30th of the month while charging me a late fee of $55.79! I have called to try and resolve these discrepancies and to request a payment history statement.They send their reply on a monthly billing statement, further confusing me, as they seem to divy up my money into their "principal, intrest, unapplied funds(?) and suspense balance(?) columns at random. I just want to refinance, but it will be at a cost of a pre payment penalty if I "voluntarily pre pay the principal sum of this note" as I will pay "equal to the the greater of 1% of the principal balance at the time of pre pay(appx. $42,000.) or $30.00 plus the remainder of any unearned portion of the processing fee($2400.00)", unless I pay in cash(havent won the lotto lately) or remortgage with National City or sub.. My 1st mortgage is appx. $61,000,plus the 2nd mortgage at $42,000, and our home is worth $125,000, so an 80%(no PMI) loan is within reach with $3,000 cash, but add the PPP and it makes it harder. Any suggestions to avoid the PPP would be appreciated. Further specific information can be supplied upon request. Thank You! |
| Christine Baker (Admin) | Tuesday, October 10, 2000 - 10:57 pm
A few days ago my screen froze just as I was about to post my response here. This is really difficult to read and comprehend, but I'll try this again.
Also, I'm not a lawyer, so I can't give you any legal advice.
"The payment is due on the 15th with a 15 day grace period. They have cashed my check on at least three occasions between the 25th and 30th of the month while charging me a late fee of $55.79!"
"I have called to try and resolve these discrepancies and to request a payment history statement.They send their reply on a monthly billing statement, further confusing me, as they seem to divy up my money into their "principal, intrest, unapplied funds(?) and suspense balance(?) columns at random."
"I just want to refinance, but it will be at a cost of a pre payment penalty if I "voluntarily pre pay the principal sum of this note"..."
I think that the fact that they charged fraudulent late charges could get you more than the waiver of the prepayment penalty, IF you can show that you brought the problem to their attention and this is NOT an honest mistake on the lender's part.
I.e. you have your call logs, letters, their responses, and you can get a lawyer to present that in Court properly. You might be able to get a fast settlement too.
What you need is a good lawyer. And a summary with more blank lines.  It's really hard to read.
Also re "principal, intrest, unapplied funds(?) and suspense balance(?) columns at random." Something is seriously wrong with your loan or the accounting.
It *looks* like you're in foreclosure, that's when I usually see unapplied funds and suspense figures.
I see you're in Ohio, not exactly my neighborhood. Can you fax me the accounting? |
| Don Semler (Dsemler) | Thursday, October 12, 2000 - 06:42 pm
Barry,
Ohio is my teritory and i'm pretty familiar with Loan Zone. Loan Zone is the Finance Co. for NCB. They do NCB dirty work. Altegra is probably the subservicer for the Loan Zone accounts to centralize processing.
Unfortuately no lender can promiss that you will always be able to pay locally as companies are bought or move their servicing.
The accounting for Loan Zone payments is not the same as a regular mortgage. Chance are they do not use simple interest but instead use a payment calculation or "days between payments". Similar to the old Transamerica for Christine. The suspense balance is probably you late charges and the anapplied funds could be your interest accrual. Look to see if you interest charged decreases every month. If it doesn't, your on the finance Co. calculation as regulated under the Ohio Small Lender Licesnse(which is where most Finance Co. and chekc cashing co's operate.
You didn't give any specifics on your first mortgage terms and why you want to bother with that loan. What rate is it at?
What is your credit like? Scores, derog's etc?
One way to aviod PMI is to do another 1st and second. However, if you first is solid, just do a new 2nd.
There are few lenders in Ohio that can do 2nds due to licensing. Rate are generally score based.
Also, with the PPP, isn't a payoff considered "paying in cash"? What, do they want pictures of the $100 bills(unmarked of course)?
I belive that type of pre-pay would be illegal in ohio. They are limited to a max of 1% unless they fall under the Parity Act. State of Ohio dept. of Commerce, Financial Institutions division can let you know if you send them a copy of your note |
