National City MortgageUnethical / deceptive business practices

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I obtained a home mortgage with national city mortgage in 2003. We had never missed payments, nor did our homeowner’s insurance lapse. After the birth of our son, I have been unable to work for several reasons, mostly health related. My husband is still working, but it is not enough to even cover the bills. This has created a huge financial stress on us for the last 20 months. It has taken all that we have and borrowing money to even make our house payments. Our homeowner’s insurance also lapsed, (which we knew we were required to have) and have been trying to get the funds together for that next.

I had called both national city mortgage’s customer service department as well as their counseling department regarding our situation to see if modifications could be made to our loan where we could reduce the payments to where they were affordable. They had indicated at that time that they could not work with us to lower the payments. During this time, I had also received letters from national city stating if I did not re-instate my homeowner’s insurance, that they would obtain it themselves. Each month, I would be hopeful that we would have the money for the insurance, but it never worked out because we barely could even get together enough for the payments. As I called national city about the payments, I would also talk to them about the insurance situation. It was obvious they knew we were in great financial distress, due to the recent payment history and the mere fact that I was frequently calling their counseling department. I had asked the representatives on several occasions, “has national city taken it upon themselves to obtain insurance yet”? The response was always “no, but you need to get your own together soon”. My response was: “thank god they haven’t got it yet; we are still trying & should have it soon”. I was told this in both 2007 & the first part of 2008. This would lead one to believe that nothing had been obtained and therefore, we still had time to get our own. It also would lead one to believe, if nothing has been obtained yet, there is nothing extra to pay for.
*especially* because we had received no documentation whatsoever of proof of an insurance policy. Usually, one does not expect to pay for something until after it is obtained.

Then just march the 6th, 2008, I received a letter dated 2/13/2008 that I was expected to pay over $5800.00 for insurance coverage that I supposeably “have had” since 4/20/2007. But as of a letter I received dated feb. 5, 2008 they were still asking for a copy of my insurance policy. Which again, leads one to believe it had not yet been obtained. When I read this, I called national city immediately. I spoke to charmaine anderson, customer service supervisor. I told her how deceptive this was to be told over & over again by both their customer service department and customer counseling departments that “insurance had not been obtained yet by national city” and never receive any proof of any policy at all, then miraculously out of the blue, I am sent a copy of the policy a year after the fact (backdated) and worse yet, the payments I could not already afford raised even higher to pay this bill (which is totally inflated anyway - regular homeowner’s insurance should be about $1600 per year – their amount was $5866.71). Instead of simply adding it to the “back end” of my loan, they remodified my entire loan without my knowledge and charged $1200 extra in additional fees to my loan to pay for this. I understand we needed to get our own insurance, but I was led to believe it was not obtained yet by national city, nor again, did I have proof of such until after the fact. The “proof of insurance” is even dated 2/13/08.
Ms. Anderson told me that if they don’t receive my new “modified” (higher) payments (with the insurance payback portion included) that she would not accept the payment, mail it back to me, & I would face foreclosure.

I reminded her about government legislation that has been passed to help homeowner’s in financial trouble and these kinds of practices are what is costing people their homes!
I told her I wouldn’t have consistently called customer service & customer counseling if we were not in financial trouble. I had expressed that to them many times very clearly. I also wouldn’t have kept asking about the insurance over & over if I had any proof or documentation the insurance that already been obtained!!
The matter in which this insurance was obtained is totally deceptive and unfair. Specifically, I am requesting national city to provide several things..

•1.) show proof of my signature where I authorized them to modify my loan without my knowledge or consent
•2.) show proof of my signature where I gave them permission to tell me for a year insurance had not been obtained yet, then backdate it and charge me for it.
•3.) knowing from my many phone calls to customer service that we were experiencing financial hardship, why they did not simply add any fees to the back end of the loan so it would not have cost us $1200 in additional fees & upped our payments even higher from an amount we were already having trouble with anyway.
4.) prove that they spent that money and there was really coverage during the time they are trying to charge me for, because over & over I had been told it had not been obtained. And again, up until now, this is the first i’ve heard or seen of the actual policy.
5.) explain why I was not informed back in 2007 that they had already bought it rather than: “they’re going to if I don’t get it soon’. They even had sent a letter stating: “they still needed proof of coverage”.

I believe they are very likely charging us fees that they really did not pay, nor did we have proof of their coverage for the entire year of 2007.
What if we had a claim?
Fortunately, we didn’t. But the point is, we had no knowledge of it at all.
Again, I wouldn’t have consistently been asking their customer service department about it otherwise!!! Not only am I requesting these modified loan fees & the backdated insurance fees removed altogether I want my house payments lowered back down not only to what they were, but we still need help in getting them lowered in the first place to where they are affordable and we do not lose our home!!

I can understand being charged for insurance from the day they obtained it for that current date forward (& it added to the back end of our loan due to financial hardship) but the manner in which this has all taken place does not seem ethical or legal at all. We would greatly appreciate some proof and clear cut answers as well as any feedback from others who may have also experienced problems with them & what they did. As of this point, our original complaint letter has been completely ignored by national city mortgage.


  • Aa
    aaa123 Apr 19, 2008

    Per your closing documents you must have insurance cov at all times and if proof is not provided the mortgage company can obtained coverage for you. So of coarse its going to backdate to the day your own insurance cov lasped.

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  • An
    Angel Mar 10, 2009

    I am with National City Mortgage myself and I have been having problems with them for a few years as far as me being behind. I get caught up and then fall behind again due to the fact of not having a job and then having a job and this was on going so I called them and told them. Then my father died, then my mother, then my sister in law and it just got crazy. My family just started dying like flies.
    I will be caught up this time and now since I am at least working I am going to try to get back on a repayment plan with them now to see if I can get caught up by the end of this month or the being of next month.
    I am praying on having my school money that I have come in every few months and I know that it will be stopping soon due to the fact I am getting low on funds now. I am almost at max for my graduate degree funds and it has been hard for us too. I understand your situation but I just say call them do not duck them and keep asking to speak with a supervisor or someone else inside the company. Do not give up at all because it is your home and without that you will be in the street. It is very important that you make sure that they provide you with the necessary documents showing that you do have insurance on the house through them before you try to pay anything. It is always best to get it on your own and that is what I did but it is included with my mortgage and it always have me short at the end of the year.
    I just got a letter stating that my mortgage is going up and now it is higher than before, but I just have to try and deal with it. I was hoping that I could pay the shortage but I wasn't able to with everything else that is coming in on a daily it seems. The gas bill always come in very high and it got to a point it was cut off .
    We are in the same boat, but what I was thinking is go back to school and get the max on the loan from them and that is about $4500 per session and take that to pay the bill that is what I have been doing for months now to try to get caught up and will be doing it with the next one too. I am only working part-time and what I make every two weeks I am making now every week.
    I would also like to know if you go to church and if so talk to the pastor and tell him your situation. They always look out for people all the time to make sure that their people are not in the street and are taking care of all the times. If that is not an option then just pray at home as much as you can and things will work out.
    I have to call them myself tomorrow to hopefully get back on track too.

    Well it's been great talking with you and hope all is well please do not hesitate to give me a holla if you need someone to talk too.

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  • Tj
    T. J. Apr 21, 2009

    I am going through thing with National City Mortgage. I'm behind 3 months due to hardship. I contacted National asking for different programs. I'm not asking for anything FREE, just a little knowledge on what I can do. I was told of the different programs and that they would send it to me via mail. In the meantime, just send a payment in prior to April 19, 2008. I agreed. I sent a payment in (a full month including late fees) as told. Today, April 20, 2009, I went to the mail box, and National sent the check back stating that they need 3 months payment. Now, If I having a hard time getting the 1 month at this time, how am I going to send three month amounting 2, 000.00 a month? National City is not working with their customers, though the government is telling everyone to contact their lender for assistance. National City is unfair. It's a shame that they would do this. We are all in a struggle, but National City don't care. Again, I'm not looking for anything FREE, just a little understanding. I'm trying to send a month here, and extra there to show my good faith...but they don't want to here that. They will send it back everytime. I suggest that all should contact their Congress (in writing like I did a few minutes prior to this one), to let them know the type of things the NATIONAL CITY MORTGAGE is doing.

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  • Ms
    Ms Roman May 07, 2009

    I've been dealing with National City Mortgage myself since last November. I have sumbitted the workout package several times. The interesting thing is that they are always loosing the information and without notifying me, they just close the case and I have to reapply. I tried to sell my home and after everythinh was approved, the buyer backed out. I had already moved out of the house as well. I reached out to them multiple times during the last 5 months and have not been able to talk to somoene who is knowledgeable on the new programs. It seems like they don't want to help homeowners. It has been really frustrating and I already gave up. Let them keep the house then if they don't want to provide a solution to the problem.

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  • I have had a workout package going on with NCM for over 4 months.. first a decline, then a request to re submit.
    NCM are ###S !!! they claim to want to help, and send you info for the Care program, and CARE don't help either !! you make too much $, or you don't have this or that... its soooo frustrating..

    I am on a repayment program now that will be 2400 a month till end of sept, then it goes back to 1700 !! I cannot wait, cause I don't want to lose my house, but I cannot afford the extra 700 dollars leaving my pocket every month.
    I have now had to begin filing for a Settlement package for all my unsecured debt, just so I can lower my monthly unsecured bills so I Can keep up with the NCM Loan.

    I too had been laid off 2 x in a 6 month period last year, and also had a horse fall on me, making me disabled for 2 months... UGH.

    Good luck, to you all !!! Hope something good comes from all this bad stuff.

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  • Ch
    chatty Jun 07, 2009

    I too am only one payment behind due to a 20% cut in pay since the beginning of the year. I called NCM to let them know I would be sending a payment this week and then another in two weeks. I was told by someone in customer service that to "accept" that, I would need to go over my budget with them and come up with a payment plan. I explained that I wasn't asking anything...I was telling her what I was going to do which was all I was able to do. Of course, she wouldn't agree so we hung up. I received some papers in the mail to fill out, showing my expensees, which I threw away. They called our home 7 times today while we were out...this is Sunday, June 7th, and when I did get home and answered, I told her again I would be mailing a payment tomorrow. She got very nasty and told me they didn't have to accept it and honestly, I almost cussed her out. I was thinking WTF??? Do they want me to not pay??? I don't get it. I've never heard of such practices. If I could refinance and change mortgage holders, I would in a heartbeat and hope to someday. Their customer service skills are lacking hugely.

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  • Re
    Ready to give up Sep 04, 2009

    My sister is just about ready for a nervous breakdown because of National City Mortgage. Due to several operations, illnesses, and her husband losing his job, they fell behind one month on their mortgage payment. The next month they sent in a payment, hoping to later make up the one they missed; yet not wanting to fall three months behind and get a foreclosure notice. National City Mortgage RETURNED their mortgage payment, uncashed, to them! NCM told my sister, "We want TWO MONTHS PAYMENTS! WE won't accept just one month's, when you owe for two!" This sounds insane to me. It almost seems as though National City WANTS to force people into losing their homes. When my sister begged them for time and asked why her check had been mailed back to her, NCM replied, "It's in the original mortgage contract you signed. We have the right to collect ALL payments due." So, here is a poor couple, desperately trying to stay one step ahead of losing their home, and the mortgage company refuses payment! Has this happened to anyone else? It took National City several months to send paperwork for my sister to try to re-finance at a lower rate - and once she filled out the several hours' worth of papers, it took NCM three days to tell her "she doesn't qualify." I would like to see a government investigation into these heartless, greedy liars.

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  • Mi
    MissyK2 Oct 01, 2009

    Reading the aforementioned statments is so sad. I too have a mortgage with NCM and I am aware that they are not working with homeowners. I have a friend going through Foreclosure with them as well as friend doing a deed in lieu of foreclosure. I am waiting to hear how much my repayment plan will be... if they honor it. I have written several letters including one to the CEO. I am just now getting several responses from them but none to a resolution. I am getting the news media involved and sending copies of my letters as well as this website to the White House and the Congressmen in MD/my district. It is ridiculous the NCM is not helping their consumers. Other banks are helping, why won't they help? They have only modified 4 loans since the beginning of this crisis. The President (Obama) has threatened to intercede if they do not start helping homeowners. I want to help get the ball rolling with that. I work too hard for my home and I plan to keep it. We need to stick together, write letters, make phone calls and complain. There is strength in numbers and we can do it together to bring this situation to the light.

    0 Votes

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