Dear Melissa you are quite fortunate in that I see that there is an impressive
array of *excellent* help for you already as I eluded to in our private email
.correspondence. And now yet another extremely competent poster Joe B.
has offered his help and said essentially what I said in my post: http://www.websitetoolbox.com/tool/post/ssgoldstar/show_single_post?pid=23630008&postcount=7“I honestly think we are overlooking something quite basic.”
Melissa I’m as good of a numbers man as you will ever run across.. In circa
1995 I was hired by Jerry Jones to calculate the exit fees and tax ramifications
for the Dallas Cowboys withdrawing from Irving Texas and moving to another
venue. My figures were published in two papers and nobody anywhere ever
found a single flaw. Even in these days of automatic calculation programs there
is another ingredient that must be applied and it is my strength: Common sense
.application of the pertinent issues at hand and spotting the absence of same.
Joe B. has hit the nail on the head. There is something quite pertinent here
that we are simply overlooking.
Your first payment of $1595 with about 1% going to principal and 99% going to
interest on the loan you described is about right believe it or not. Remember
theoretically you will be making about 359 more payments if all goes according
to the 30 year monthly payment schedule. That means your last payment will
be roughly 99% principal and 1% interest. So far so good.
But here’s why there appears to be something significant missing. ..Even with an
ARM adjustment (very significant) you just mentioned.
The fact that after eight (8) years you have only paid off an est. 3.3% of your
principal sends up a big red flag saying, “What are we overlooking?” That’s 26.6%
of your 360 payments that have been completed and while we know it should be
nowhere near 26% nonetheless it is well below where it should be.
I am also intrigued by your input that “I have a payment history, and for 1 1/2
years nothing but interest has been applied to our loan. Every payment I have
made of 1434.85, has gone completely to interest. When I ask for an explanation,
they keep saying because you owe back interest.”
Here again I agree with Joe B. I think what we may be overlooking is the *TERMS*
of your subsequent ARM adjustment. Remember you started out paying 1%
principal v 99% interest on your first of 360 payments. That’s about right! Then
the “interest only” gadget kicks in which I suspect as Joe B. does, originated with
your ARM adjustment terms.
My overview is that after we look at the terms of your ARMS contract adjustment
you should then check your payment history to see if money was being skimmed
off the top to cover late charges, bogus charges, or drive-by inspection charges
which escalate when the loan is in “default.” .. These charges, legit or not, are
then again skimmed off the top of your regular payments causing more late
charges and keeping you in default. . “Default” is a broadly interpreted and abused
word to say the least.
Demand monthly statements and get a payment history of all of your suspense,
escrow, corporate advances etc. IF they will give you same.. They may not!!
(EMC has incredibly declined to give me those charges which is another matter
Write "To be applied as a regular payment ONLY" on the back and front of all
subsequent checks regular payment checks.
We are missing part of the puzzle Melissa. Can I ask who your servicer is?
Ed Cage | 1804 Cross Bend, Plano Texas 75023 | email@example.com | 972-596-4363