I bought this house in Tempe AZ on Aug 1, 1995 for $105,000 at a fixed rate of 9%. Payoff time was 22 years. When I purchased the home there was a second mortgage on the property and that payment was around$200.00 on top of the first which was $825.00.
I paid off the second which left me the $825.00 fixed rate payment. Around 1999 I had met this friend of a friend who was working at a car dealership in Phoenix AZ as a loan specialist who got a few of my family and friends approved for auto loans. He then went to work for a mortgage company in Phoenix as well. He kinda became a good friend and when he asked me run a credit card thru my business for a cash advance I went ahead and did it. this was after he got my mortgage refinanced at the company he was working for.
When he first asked me about my interest rate and I told him I had a fixed at 9%. He told me he could do better and lower my payment plus get me some extra cash out of this whole deal. I told him that I wanted a fixed rate as well and the same pay off period of the original loan which would have been 2017.
Well after I signed I found out that the rate was still at 9% and my mortgage had turned into a adjustable rate. I felt deceived by this whole matter but didn't really felt that since I already signed that I couldn't do anything about it. Well in the meantime about me running a credit card for him. It turned out that the card was his father in law who disputed it and I ended taken the loss of $2000,00 because of it. I did sue him in small claims court here in Tempe AZ and won the judgement but was never able to collect a dime from him because I was never able to find him.
Anyway I continued to pay thru this new company which turned into another company and for a while I was sending payments to different companies. My payment had jumped to$1100.00 for a while but I still paid it and was never late from 1995 to around 2009. In 2009 I started to have difficulty in paying my mortgage as being a self employed artist and with the economy getting worse and worse I fell behind.
I went into foreclosure in 2010 but was able to get a loan from a friend and got reinstated in August 2010which included paying some substantial attorney and late fees.. At that time after reinstatement a employee at GMAC which took over my mortgage told me that I did not have to make my first payment until Dec 2011 but later I found out it was Dec 2010. In the meantime I had rented the house out and after 5 months had to sue the renters to get them evicted because of non payment of rent. I found that I was actually about 11 months behind and was scheduled for foreclosure on Oct, 27 2011.
The day of foreclosure I filed for Ch 7bankruptcy which was finally discharged on March 4 2012.
I tried numerous times before Oct 2011 to get GMAC to work out a deal but they wanted the whole amount to stop the foreclosure which was about $13,000 and that is why I filed for bankruptcy. Well they have re-instigated the fore closure which now is set for June 22, 2012. I requested a show me the note letter and they sent me a copy of the 1999 sale which the so called friend did. In the meantime I found out that guy was indicted for grand theft for something he did at the mortgage company he worked for. He and another guy were sent to prison. The reason I brought him up was I have feeling that something might not be right with the current loan that GMAC now is servicing.
And that is where I am at. I have contacted GMAC and they want me to send info for a loan modification but I don't think they would approve me anyway. I do have equity in this house about $70,000 but that is also in question as the payoff amount does not match what I think it should be. I think I presented everything. So if there is anything that can be done please let me know.