Centex Home Equity - payments to creditors were not for full debt amounts, as expected

# 8 for July 13, 2003

Complaints.com received the following on July 12, 2003:

From:

RE: Centex Home Equity - payments to creditors were not for full debt amounts, as expected

I didn't want a mortgage...I only wanted to borrow $1,000 to insulate the house. My husband and I work for a small company, in Minnesota, and don't make the wages we should. but, it's better than not having a job. I sensed that winter was going to be very harsh, and wanted to get insulation into the house...it's a very old home, with no insulation. Anyway, I called around, but was turned down, and even called the State's Energy Assistance program and was turned down by them. so, my only option left was to contact a lender that was advertised in the newspaper, under National Ads. Centex Home Equity called. I dealt with Brendan Kelly, and he told me that they couldn't just borrow me $1,000; they had to clear up my credit report, so I had to borrow $37,000 to pay everyone off. My payment would be $437. a month. I said "no, I can't afford those payments." He said, "you don't understand, you won't owe anybody else, cuz we'll pay everyone off for you, with this mortgage. You will receive the checks, then you mail them out to the creditors." What he didn't tell me, was that Centex didn't take the responsibilty to call the creditors to make sure that the payments would make us "paid in full" with them. Cuz, we aren't...so now, we not only owe a mortgage of $437, we also, still have to pay off the creditors. Plus, Centex doesn't do Taxes and Insurance on their mortgage, and are mad at me for not being able to afford to pay the taxes and insurance! They call me at work, after I've repeatedly told them not to, and harass me. Threatening to take my house if I don't pay them TODAY! I only get $200 a week to live on! Brendan told me, that we could refinance a few months down the line, after we've made payments, and they are on time. Because of the high payment amount, I was only able to handle the payments for 5-months. After that, none of the payments are on time. and, Centex doesn't care. "we just want our money!" I'm looking to refinance to get away from Centex, but I'm stuck with them. They charged me 14% interest, to start with them. After I complained to the Atty General, for Minnesota Consumer Protection, the Atty Gen. got the

interest lowered to 13%, which is what I pay now. (7/2003). I've been

trying to find a different mortgage Co. for 3-years. I haven't had any luck, yet...but, I keep looking. Centex ordered an appraisal from a company that normally work with...it was appraised for $50,000, in 2000....in 2001, it was appraised for $11,000; what happened?! Sheila