credit questions

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OK, I know it's not a homesteading question, but I feel comfortable enough to ask, after lurking for over a year. Yes, we took out a 2nd mortgage five years ago, to build the barn, ect. 2 months ago the initial lender sold the loan. The grace period on the loan was until the 20th of each month. The new company, HomeEq, who I have never heard of, now starts calling 2-3 times a day on the 6th of the month. I will tell them when I will call to make a payment and they get very argumentative about setting up a "check by phone" that day, even after I tell them I am uncomfortable doing that. How much is considered harrassement? It's not like it is 30 days late or anything...has anyone been here? I don't know the legalities of their calling. HELP!!!!

-- Mary (yyydelilah@hotmail.com), May 07, 2001

Answers

Try telling them you want all communication in writing and hanging up if necessary.

-- Anne (HealthyTouch101@wildmail.com), May 07, 2001.

Sounds like a good time to re-finance. Probably get a better rate too! You might mention this to them next time they call. We get similar calls from our long distance carrier, wanting us to pay by credit card!

-- David C (fleece@eritter.net), May 07, 2001.

As I understand your payment is due on the first, but you have untill the 20th before you have to pay a late charge. This means you are late with your payment and they do have a right to call and ask for their paymment. The bank we do buisness with has no grace period. If the payment is not recived by 3pm on the due date you owe a late charge. This enbables them to give great service and at cheaper rates. If you are slow they just don't loan you money. I like the service and the cheaper rates. Some people really get turned off by this but if you want good credit ratings you can not make your payments even one day late. Every time you make one late even in the grace period you are establishing the fact that you are slow payers. When applying for a large loan such as a FHA you would have potential problems. Good credit ratings are a great tool to have and bad credit rates can cause failure of your dreams.

-- David (bluewaterfarm@mindspring.com), May 07, 2001.

Have a couple suggestions. Check to make sure that nothing ever came in the mail regarding changes to that contract. A company who buys out a loan can change things at their will so long as you have 30 days notice in writing. If nothing came:

First, consider refinancing - you are probably paying way more in interest than you could be anyway!

Then begin with the following:

Remind them that you know the terms of this agreement, they have not sent a written change, and that they are obligated to stand by it as written. You CAN file charges against them if they call more than a certain number of times before the 20th, but I don't know the number of times.

Let them know that you will report them.

Make them send everything in writing, and request IN WRITING that they not call you - keep copies of the letter.

Remind them that it is illegal to threaten, harrass or otherwise try to intimidate you to change your method of payment, change the terms of the contract (once you do they can call it due IMMEDIATELY) etc.

Report them to the BBB and COC in their town. Tell them you are doing this.

Don't speak to anyone other than a member of management. Hang up. Or, request to speak to the company attorney... That usually REALLY gets some attention.

There are plenty of 'free consultation' lawyers listed in the phone book that will answer a question as to what is legally considered harrassment... Call a local one and see what the laws are in your area. Then, at least, you have a professional opinion on your courses of action.

You could also lie and say you work for the circuit court in your area. I really did... that can go a LONG way -

Their collection department is way over-paid and under-educated... I've worked in collections, too... Never in a million years would we have done this!

-- Sue Diederich (willow666@rocketmail.com), May 09, 2001.


If they are calling 3x a day I would consider that harrassment. Tell them that you are considering reporting them to the necessary State authority for harrassment and see if that helps. The other day I received a call from a creditor at 8:07 a.m. Monday asking why a payment was a week late. I explained I mailed the payment two days agao, and they made a note of it and the matter was resolved (I will feel so happy when we pay off that debt..next week! yeah!). Then, realizing how early it was, I commented on the fact they called so early. The reply was, "we start at 8:00 a.m." My reply way, "perhaps I need to call the proper authority to see what time you are legally allowed to call me because calling at 8 a.m. is very early and very rude." I believe there are times during the day that creditors are allowed to call, and doing so outside that time is illegal. Someone correct me if I'm wrong.. good luck with the creditor. One way to resolve it for sure, as someone said, is refinance... If your creditor is being nasty, you can surely find someone else that will refinance your house. So long as you have equity in your home, even with bad credit you can find a lender--but the interest rates will be higher.

-- amy (acook@in4web.com), May 09, 2001.


I agree...refinance..we are looking into that right now. We have a 25 day grace period, but the phone calls start 3 days before the payment is due. They call at 8:15 every morning and if we ever go over a day late, then they call every 15 minutes until 9:45 pm. Greenpoint Credit...don't do business with them.

-- Cindy in Ok (cynthiacluck@yahoo.com), May 09, 2001.

I worked in credit for 10 years and until I read Davids post I thought they were wrong, but David is correct. And it will show as a "modest" lateness (used to be a I-2 out of 9). These things can affect future credit decisions. We paid 2 home loans between 1976 and 1989, and they had the nerve to question one JC Penney's payment, 1 month late in 13 years. I would't get frazzled over it though. I took advantage of every grace period there was, and it has never been questioned. I think that secured loans are expected to be payed with a little more flexability, while unsecured loans generally must be collected within 120 days of payment due, (with full scale collection activity) or they get classified as Profit and loss accounts, subject to judgements and wage attachments where feasible). There seem to be 3 choices. 1) refinance or arrange for a change in the due date. 2) Save a fraction of the bill in you checking account (or mattress) each month until you have a full payment. 3) Accept, dodge or counter attack the calls. A promise of a half payment might quiet them for a while. So might stating that your significant other makes the payments and can't take the call (none of their business why).

Hope this helps

I

-- Rick K (rick_122@hotmail.com), May 09, 2001.


Posting again on the being late just because you have a grace period. Wendsday we got a house we had owner financed back. The people who had bought it from us got up set when I told them for the third time not to be driving dirt bikes, three wheelers, go carts, you name it. On the hills here that causes erosion problems you would not belive. He had hunted on our land for the past two years, he cut dammaged trees for firewood, fished in our ponds, all with permission. He felt I was unreasonable and wanted to refinance, well his credit was slow and he could not get as good a rate as I was charging. Even though the house appraised for more than he financed with me he could not get financing. He didn't want to continue paying me, didn't want to sell it just signed it back over us. Moral if you want or ever need good credit don't be late it takes away points on your credit report. Eazy to lose them hard to get them back. By the way anyone want a house and one to 40 acres. Owner financed with reasonable down payment. Want good people for a good neighborhood, Slow credit is not going to help.

-- David (bluewaterfarm@mindspring.com), May 11, 2001.

Did you really have a 20day grace period or the company just didnt call you till after that. 20 days is a long time in finance terms. What does your contract call for? Might be the new company is following what you agreed to the other company gave you a little more time. If they are calling and your contract says the 1st of the month then YOU ARE LATE and it could go on your credit report.

-- Gary (gws@redbird.net), May 19, 2001.

the ongoing saga...this month, when they called the first girl called at 6:45 in the evening. I told her I would be calling the 18th with the payment, again, lets do a post dated check, I refused. She then went into how if I go over 30 days that is a breach of contract, I will pay $200 fee, I will be subjected to house inspections, ect. I told her I had checked the terms of my former contract and the letter initially sent out by their company and nothing had changed. She disputed that, and I went on to say that I had checked her company with the BBB of Sacramento and the amount of complaints for harrassment were phenomenal. Her response was "well, I guess you will just make one more". Not more than 30 minutes later another call from another collector, who said we have noted your refusal to pay. I told him it was harrassment and hung up at that point. I guess just to end my own aggravation I will come up with an extra $400 and keep it a month ahead. What do you think they are doing to people who go past 30 days???

-- Mary (yyydelilah@hotmail.com), May 23, 2001.


Unless YOU initiate the call, do NOT under any circumstances give out checking account, bank card or any other sensitive information over the phone. Any criminal could be calling you, and they could do a lot of damage with the information. Even if they sound familiar and you have caller ID, DON'T do it.

What a strange company. Our regular mortgage is due the 1st, we mail it out in time to get there the 16th (last day of grace period). We have NEVER been called.

According to them we were late once, they mailed the late bill to be paid with the next payment. Where we send our payment to doesn't take 5 days to get there, generally about 3. So I called and let them know it probably got lost in their in-house system. They removed the late charge.

They should not be calling you--it is not as if you've been third- partied as if you were 'way late. They can call during working hours in that case.

I am not sure, but I don't think they can change the terms on long- term loans--after all, we're not talking about revolving credit on a credit card. You might want to go to the Federal Housing Administration (FHA) website, and they should have something on the laws. Maybe find something on the Fair Credit Act? At the Dollar Stretcher www.stretcher.com there is a link to I think Bank Rate.com and you might find some answers there.

If you don't get any help that way, try to refinance through a credit union, or some bank where they service their own loans and don't sell them, ever. Our mortgage is like that--it is in the contract. If you are paying within the grace period, the company should not be reporting you as late, or if they do, at least it is a "regular" (in the sense of consistent) late, so I don't think it would hurt your credit if you try to refinance elsewhere. Good Luck.

-- GT (nospam@nospam.com), August 09, 2001.


Isn't there a Fair Trade Commission in every state???

The last time I couldn't get anywhere I reported them and they never harrassed me again.

Also, class action suites are a popular past time these days, want a little extra money to pay off your loan? Sue them!

-- stephanie nosacek (pospossum@earthlink.net), August 10, 2001.


Credit report? Who cares? They seem to be a joke, anymore. First of all, it makes more sense to save your money, then buy stuff, than to pay all that interest.

Second, I don't care how bad your credit is, you can reestablish it by getting a credit card. I get credit cards in the mail--preapproved twice or thrice a month,and I have never asked for them, even.

I even get preapproved credit cards a every month or so for my late friend and caretaker, who lived on my property, but died SIX YEARS AGO, after stiffing all his creditors, because he couldn't work, and needed medication, etc.

I've even sent letters with the credit cards back to the senders, with "DECEASED" written accross the front of the envelope in big, friendly letters; however, the credit card folks keep right on sending them. Do they consider someone who's been dead for six years, and ruined his credit, a good risk?

JOJ

-- jumpoff joe (jumpoff@ecoweb.net), August 10, 2001.


I agree with you, Joe, credit statements mean very little these days. You can have truly abysmal credit but can still qualify for all sorts of loans.

And I don't think anyone will refuse to loan you money if you pay extra on your mortgage every month, even if you are paying late but within the grace period. You (the bank) doesn't like it? Fine, I'll take my custom elsewhere.

Another suggestion, until you get this harassment straightened out, if you don't get a lot of phone calls, just disconnect your phone unless you are actually making calls, tell your relatives/friends to call later in the day, or leave your answering maching running (don't pick up unless it's family or friends) and record all of those calls with their time/date. Re-Record them on tape so that you can take them to court for harassment.

Many phones allow you to record calls on your answering machine. This may or may not be allowed in your state. When you pick up, say Hello, this call is being recorded, the time is ____, the date is _____, if you object to this hang up now. If they don't hang up, obviously they don't have a problem with it. Again, transfer to tape for going to court later if necessary.

I would do the answering machine screening/recording of all messages myself. I can't believe the company spends that much time going after you, they could be spending the time getting NEW loans. Guess they're too dumb to know that.

-- GT (nospam@nospam.com), August 10, 2001.


My loan was sold to HomeEq. My house payment was 399.84 a month. I received my monthly payment stating 606 a month. I called & they said because my insuarance lapsed. I faxed them a copy of my insurance & they said it would take 2 MONTHS to have it stopped. I called again after my payment went to 717 a month. They said it was for back taxes which I was under a contract with the city paying them monthly. It got to the point that noone could answer the question of why my house payment is 717. I fell so far behind that I am loosing my home now. They told me I could make a $457 payment monthly plus my monthly payment. Ok that would be about $900. Maybe I could swing that but they insist that my normal monthly payment is $717 a month. I am now in forclosure!!! Be aware of HOMEEQ!!!!!!!!!!!!!!!!!

-- Jackie (tackey_lackey@yahoo.com), March 18, 2002.


Ok, Mary seemed to be playing the late but no late fee game. Seems the company was going overboard on her, but she was sorta late.

Jackie, you need to be seeing a lawyer, probably a long time ago. Something is seriously wrong with your picture. Either something is being left out of your explination, or what? I hope you continued to make the original payments each month. Otherwise if you just stopped paying, you are in trouble, lots of fees & penalties apply. If there was a disput between what you do owe & what they think you owe, that can be cleanned up fairly cheap, but you could have put yourself in a hole by not paying anything.

--->Paul

-- paul (ramblerplm@hotmail.com), March 18, 2002.


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