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Beazer Homes / EMC Loans / Verbal loan fraud!

CA, United States Review updated:
5
Contact information:
Phone: 714-231-6182
I purchased my first home in October 2006 while I was in Iraq doing contract work. I served in the US ARMY for 7 years, then 3 months after being out of the service - I joined a contract job in IRAQ to continue helping out my country. My sister was my power of attorney and signed all the paperwork for me. We found a brand new home in the Wildomar/Murrieta area with Beazer homes and I was pre-approved right away because of my good credit and income.

At the time, I was pre-approved for 100% financing with an interest rate at 6% on the 1st loan (80%) and 8% on the 2nd loan (20%). Beazer Homes said that if I used their mortgage company they would "throw" in 20K in upgrades and pay for my closing costs. They also said they could beat my lst mortgage interest rate with a 5.5% interest only 5 Year ARM vs. the 6% my bank was offering. This sounded perfect!

Little did we know, the loan officer was crooked (Linda Smith). She verbally told us the rate was 5.5% and when my sister signed the loan paperwork, she also explained it to her that it was a 5.5% interest only 5 Year ARM. What she neglected to say and point out in the large stack of loan papers was that the 5.5% rate was a negative amoritazation rate and that my REAL interest rate is 8.5%. (Linda Smith and Beazer mortgage would be making a killing on this loan by marking my interest rate up - that meant a great deal of money in Linda's pocket - at my expense!!!)

Once I received my closing paperwork and first mortgage statement - we realized we had been conned. Needless to say, I love this home and want to keep it. I have perfect credit and decided to pay the 8.5% interest rate for a year and then just refinance when my one year prepayment penalty was up. This meant I was stuck in Iraq doing contract work for a year more than I planned. This also meant leaving behind my new wife (married in 3/2007) in a large home all by herself. I am working to pay for a home I can not even live in or enjoy.

Now a year later with the decline in home values - I can not even refinance. EMC Mortgage could easily give me a loan modification but they say I have to leave my job in IRAQ and fall behind on my payments before they will assist me. This is bull! I am basically risking my life to be able to pay down all my other bills so I can "hopefully" one day come home and join the police force and afford my mortgage. I have worked too hard to have a credit score of above 720 to just throw it all away because Beazer Mortgage/Linda Smith and EMC Mortgage are not ethical.

Note: I am not the only buyer that Beazer Mortgage conned. My next door neighbor is in the same scenario.
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Pa
  4th of Mar, 2008
Agree Disagree 0 Votes
My husband I purchased our Beazer Home in January 2006 and were persuaded to go with Beazer Mortgage for the incentives and that they would pay our closing costs. We recevied a pretty good fix rate because of our good credit. We have paid over and above on our monthly payments allocating most to our escrow account so we wouldn't be in the scenario of being in the rears. The first year was fine, we even rec'vd a refund check from Irwin Mortgage for having too much in our escrow. When IMC shut their doors, our loan was transferred to Everhome Mortgage who I must say we are not impressed with at all. Our payments for 2008 increased by over $400.00 amonth b/c EMC states we were in the rears on our escrow account when they inherited our loan from IMC. I'm thinking how can this be? Well, it can't. Something is fishy. I've asked for help from EMC, but they want to charge me $10.00 for each document I want a copy of concerning my loan. Bogus!! I also asked for a formal investigation into my account, but all they can come back with is that we were in the rears when they inherited our loan. I can not get ahold of IMC for answers because they are out of business. Now, this $400.00 extra a month has put a financial strain on our family, not to mention the emotional rollercoaster. I can only imagine if we had not paid extra every year, how much would we owe?? We are seeking legal counsel as EMC is not providing the answers or information we need to understand where this extra amount came from.
Ra
  10th of Mar, 2008
Agree Disagree 0 Votes
EMC has been taking my monthly payment putting the appropriate escrow amount into the escrow account, but yet with no major increase in taxes, my mortgage has increased from 1200.00/mo to 1630/mo in just 4 years. When asked about a suspicious "Repay escrow advance" amount clearly deducted from my escrow account, one person said "no, that amount wasn't taken out; it was actually put in." However, that person couldn't say where it came from. Another EMC employee hung up on me, when I questioned why the $94 was deducted from my escrow. One employee told me that there is a shortage, but she couldn't tell me why and she said that I will be paying them 55/mo for the next year just to clear up the shortage that apparently came from nowhere.

This financial company cannot answer a simple financial question about my payments to it. The people EMC's got handling my inquiries are probably reading from a script, and when I don't accept their quick-talking, number-throwing highly suspicious responses to my inquiries, they transfer me, hang up on me, or put me through the automated phone system loop again. Very unethical and fishy practices for a company who is handling MY money.
Un
  19th of Aug, 2008
Agree Disagree 0 Votes
My horrible EMC Experience!

A management company stole my money and never had renter in the property as I as told. The investment property is out of state from me. When I found this out, November 07, I called and wrote EMC and asked them to work with me. I called them again in December 2007. I sent in paperwork in January 08 for a modification, 1st is at 8.50 % the second is at 16+%, yes sixteen percent. We had plans to refinance at the end of one year but did not make it to a year.

EMC would not help. I submitted the whole package again to a different person as instructed in February 2008. They stated that they could not do anything to help. A friend used $25, 000 to keep up the payments as long as he could. He ran out of money.

I tried again in March 2008 to work it out with them. I tried again in April to work out a plan with them. No luck! We started a short sale process in April, it would not work out with the offer made. We had to close it and submit another short sale. My agent did just that and we had a buyer for the property. I was told by EMC that it was agreed on it would just be a couple more days until it was complete.

The property sold Friday, August 15, 2008 at auction while my short sale agent was working on closing the deal. The EMC person handling the short sale did not know that it sold until Monday, August 18! Very strange! The right hand does not know that the left hand is doing.

Everyone tells a different story when you talk with them. One guy got nasty today when I told him of my experience and that EMC was the worst that I have work with. He said that they did not make me sign the paper work. They actually purchased it from my original lender.

I told him that I did not make someone steal my money and run! He was rude! I did not get nasty but really wanted to scream at him.

There are some nice people there that want to help, but they are not allowed to help.

No wonder that the government had to bail them out. They are part of Bear Stearns. Never do business with EMC.

My credit is ruined and I do not know what I can do. I barely have enough to pay most of my bills and rarely go to the grocery. I eat very cheap. My air condition has been off for 2 weeks. The gas prices have hurt since I have commute to work. I have a cheap old car.

EMC is a predatory leader for sure.

If you see EMC on your loan RUN...RUN...RUN!

Don't get behind on your payments even if they tell you to modify, they will not work with you!
Ti
  10th of Mar, 2009
Agree Disagree 0 Votes
I so much agree with you. I am in the same boat. NO ONE IN EMC WANTS TO HELP! I wish I would hit the mega lottery so I can buy the foreclosure homes and give it back to the families. So many family are hurting. CAN OBAMA just help the families with a one percent loan families can pay their mortage, and bills... Why help big banks, they are only saving themself.
Ap
  20th of Mar, 2009
Agree Disagree 0 Votes
aside from this, how about getting any warrenty work done?

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1000 Abernathy Road NE, Suite 260
Atlanta
GA
United States - 30328
+1 770 829 3700
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