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Navy Federal Credit UnionMortgage line of credit

I have been a nfcu customer for almost 20 years and up to this point had been very satisfied. Due to the recent economic conditions, I am in a bit of a pickle. I owe $190, 000 on a first mortgage and $150, 000 on a line of credit. My home is currently valued at $175, 000. Before the real estate bust my home appraised for $430, 000. I thought I was beeing wise when I purchased a rental home with the line of credit 5 years ago. I was not investing to flip but for a long term investment. I planned on refinancing this loan once I had %20 equity in the rental. Well, now the rental home I purchased for $155, 000 and remodeled is worth about $70, 000. I have had to reduce the rent from $1200 a month to $800 a month to keep it rented. My current combined payment is $2100 per month. My line of credit matures this summer. My payment will then be about $4000 a month!
I have contacted nfcu multiple times over the past year to try to find a solution. I have spoken to custome r service and they tell me "sorry there is nothing we can do. Those were the terrms you agreed to. "

I have let them know that I am willing to repay what I owe but I need the terms adjusted. I explained that I could afford $3000 a month. They will not hear it. I suggested refinancing the entire amount and amortizing it over 30 years at a reasonable interest rate considering I have a credit score of over 800. They say "that due to the current value of my home and there new requirement of needing %20 down I would need to put down $250, 000 in order to get approved. Ha ha funny right. The sad thing is they are serious.

I have suggested a loan modification and they tell me that those are for people who are currently struggleing. I explain to them that I am not struggling currently but I will be. I am trying to solve this problem before it becomes a problem instead of waiting until it is a problem.

I feel that I made the decision to borrow the money and had planned on living up to my end of the deal. I am trying to be a reasonable person and repay my debt. After many hour of research and phone calls, I am beginning to see the writing on the wall. I am probably going to loose my home to forclosure and end up with bad credit and a judgement against me. They will then probably come after me with a judgement and garnish my wages.

I have wife and two young girls who depend on me and I have failed them. I do not know how I will live with myself when all this happens. All because some greedy jerks will not work with me at navy federal credit union.

They act like they need the money back right now. Thanks for ruining my life. I had been an honest responsible person and due to circumstances outside of anyones control and navy fedreal credit unions lack of flexibility and empathy my families future is now very bleek.

Thanks for reading my post.

Responses

  • So
    SoCalConsumer Mar 07, 2011

    You took a calculated risk on a lower interest rate on the assumption that your property would hold its value in order for you to refinance at a later. That is a risky investment, and you assumed the risks when you signed the loan papers. Many of us were unwilling to take that risk, and we paid higher interest rates owing to the security of a fixed rate loan. I believe that you had that option, too, but it does appear that you wanted lower payments. Um, so did I, but I didn't want to risk my future, as you risked yours. However unfortunate your circumstance now may be, you took a gamble and you lost. Nobody forced you to gamble on a variable rate loan. You could have taken out a fixed rate loan and never have had to worry about refinancing when property values dipped. I don't mean to sound callous, but you are the one who has created this situation, not your lendor. With all respect, I do hope that you were able to work things out.

    0 Votes
  • Ny
    NYQUIL Oct 24, 2010
    This comment was posted by
    a verified customer
    Verified customer

    Good luck everybody. See my complaint copied below that I started moments ago.

    I am surprised by all of these comments being made about NFCU. I have had my own problems with them but, I’m still surprised to see this many comments. I never guessed that there would be so many disgruntled people out there willing to write about their negative experiences.

    NFCU has essentially terrorized me over the last two years (including while in bankruptcy). Frankly, nobody deserves to be treated like some of us have been treated. While I take full responsibility for not completely fulfilling my obligations, I've paid off multiple loans and paid thousands of dollars in interest to NFCU. Nothing justifies treating anyone the way that I have been treated. When my financial "crash" came I made it a point to call NFCU twice a week for more than a year prior to filing bankruptcy. I mostly called them so that they wouldn't keep calling my family members and harassing my neighbors.

    One evening last year, at 9:30PM, NFCU sent a “door knocker” to my home. I’ve since learned that a “door knocker” is a collection industry term used for a contractor who places door tags onto the handle of your front door. These tags typically say that they want to speak to someone in the household. The “door knocker” pounded and kicked on my door so hard that, for a minute, I thought that it was a home invasion (I still have the dents on my door). I think that he kicked my door because the dents in my door are on the lower portion of my door. I was able to talk to the “door knocker” through the front door. He stated that he was working for NFCU and that I needed to call them. I told him that I had just talked to NFCU the previous day and that I was going to complain about his pounding on my door. He basically told me that nothing would happen to him and that he would not get in trouble because he was just “following orders” given to him by NFCU. I told him not to return to my home again and that I was going to call the police. He then ran to his car and drove away. While I was not able to get his license plates, I did call the Fairfax County police and gave a description of the "door knocker" and what had happened. They indicated that they would make a report and for me to call earlier next time so that they would have a chance to question that person at my home.

    It was this incident that, not only scared the heck out of me but, caused me to realize what was actually going on. I had noticed that although I had been calling NFCU twice a week for 6 months or so prior to this incident, NFCU was still calling my neighbors and my family to harass me. They repeatedly called my in-laws, siblings and mother. I’m sure that they called others because most people would not probably want to add to my own embarrassment by telling me about their NFCU calls. At the time, I felt humiliated and too embarrassed to do anything about this harassment. I was (and still am) trying to focus my energy on getting a job. I did write the Chairman of NFCU to complain and explain my situation. My letter to the Chairman basically apologized for hurting the members of NFCU for not meeting my obligations and (most importantly) to ask NFCU to stop using illegal collection techniques to bully and harass me. I even wrote that I thought NFCU would collect more if they followed the law.

    At this point, I have had it! I have gotten to the point where I actually feel ashamed for not standing up to them earlier. I've caused my family a tremendous amount of pain due to my economic situation as it was and is. It wasn’t right for my family to have to experience the unbelievable behavior associated with NFCU’s collection activities. All of my creditors had essentially cooperated with my financial situation except NFCU. NFCU is the reason that I filed bankruptcy in the first place! I didn’t have any money to pay anyone anyway! During bankruptcy, I had to submit to a deposition requested by NFCU (more NFCU harassment!). During the deposition the lawyer from NFCU kept asking me about my disabled daughter. That was unbelievable! I had essentially given up my ability to get a security clearance by filing bankruptcy and I was still being subjected to the wrath of NFCU.

    At this point, My home is being foreclosed on (finally), I am broke, I have no job, I've got a disabled daughter who has substantial medical needs (she’s still wonderful and I wouldn’t trade her for all of the money in the world!), a wife and a son to take care of (they are also awesome!).These realities are NOT NFCU's fault but, I now have nothing to lose and perhaps I have learned a valuable lesson about how to appreciate what I do have (an awesome family and the sun coming up in the morning). I’ve also learned that one should never run away from “BULLIES AND THUGS! The pain and shame only get worse!

    I've decided to remove myself from bankruptcy (I should never have filed in the first place!) and take NFCU to court to try to keep them from harassing others like they have harassed me. It's the least I can do for my own health and to give back to those who may suffer in the future. I'll spend half my day looking for a job and the other half dealing with NFCU in the courts. I will probably lose, but I will do a more honorable job of getting my point across and at the end of the day it’s the right thing to do.

    My story is true and I'll put my hand on the bible to swear that it is (just like I will in a courtroom soon enough). I’ve got a bunch of faxes, letters (some certified) and all sorts of notes related to phone calls that will help substantiate the immoral behavior and treatment I received from NFCU. I ask that anyone who has a truthful story that they are willing to share about their experiences with NFCU to please contact me at [email protected] You don’t have to talk to me if you don’t want to. You can just share your story in writing anonymously. I realize how embarrassing these issues are to communicate and I don’t think there is anything wrong with keeping them private. Some of you may feel better by just communicating your thoughts to me (kind of like writing a letter when you’re angry and then ripping it up when you are finished). I promise that I will not share your emails or our conversations unless you want me to.

    And to anyone out there who works for this group of "GANSTERS” and or agrees with the behavior that NFCU has used to bully me and others", I'LL SEE YOU IN COURT! Thank you for your time and gob bless. Nyquil762 otherwise known as at Mark in Virginia. I’ll publish my full name after the lawsuit is filed.

    0 Votes
  • Va
    VaMom Jul 05, 2010

    These are hard times for a lot of people but I don't see how NFCU is to blame for your problems. They owe you good member service, but they also owe all the many, many member depositors good service and sound financial practices too.

    1 Votes
  • 4u
    4usaul Jun 22, 2010
    This comment was posted by
    a verified customer
    Verified customer

    I agree with this post, I 'm in the same situation Invested in real estate, lost-it all and with 3 children at home, bad credit and NFCU keeps loosing my modification package and now I received Notice of entry of final judgment and its scary. We want to keep our home but how can we get results, how can we fight it. Please email recommendations and suggestions, contacts etc. to sauldmarques (At) gmail (dot) com

    0 Votes
  • Fi
    FightIt Apr 28, 2010
    This comment was posted by
    a verified customer
    Verified customer

    If I may make a timid suggestion.

    Demand the the "Original" contract and Promissory Note. According to the Uniform Commercial Code, the holder of the Note is not the owner...you are. The holder of the note must keep the note in exemplary condition.

    Also, challenge them on where the loan occurred? In other words, if NFCU claims that they are loaning out member monies...they are regulated by the Securities and Exchange Commission.

    If NFCU did not loan member money, then the money had to come from somewhere, right?

    You are not the "Debtor"...You are the "Creditor". If they tell you otherwise, they are lying.

    When you are born and receive a Birth Certificate...a Bond number should be displayed on the Birth Certificate. The number is used by the Department of Commerce to establish a quasi corporation...which is (YOUR NAME IN ALL CAPS) as is displayed on all Legal information you receive from NFCU, or any other institution. Your Drivers License will show ALL CAPS, etc...

    Typically, we are tricked into believing that we have received something when we have not. Your signature is collateral used to access your trust account with the department of Commerce...and will show up as a credit to the Financial Institution. But, in fact, the day you signed the document, you already paid.

    I realize it sounds bizarre...and that is the intent. To make the Signatory delve into a very abstract and deceitful agreement in order to enrich the institution.

    So, you check it out for yourself. Don't believe anything unless you confirm from three different sources.

    NFCU will not offer you any help in nailing their a$$e$ to the wall. We have to step and do it ourselves.

    Step up!

    0 Votes

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