Fairbanks Capital Corp. - mortgage purchased from Citi-Mort Co. - trouble with customer service

# 26 for May 23, 2002

Complaints.com received the following consumer message on May 22, 2002:

From: Email User RE: Fairbanks Capital Corp. - mortgage purchased from Citi-Mort Co. - trouble with customer service

Dear Sir: Approximately one year ago, Fairbanks Capital Corp. purchased my mortgage note from Citi-Mort Co. from which I had received a 2 month forbearance due to a layoff. My first correspondence from them was 4 identical letters sent threatening forclosure. After 3 months of phone calls and letters, I finally received a letter from a Consumer Advocate that assured me that Fairbanks would honor the previous agreement with Citi-Mort. and that no one with Fairbanks would attempt to collect the defered amount.

They did say, however, that this defered amount would appear on their "screen" as a past due amount. Three months later, as I continued to make all payments on time, I received another round of letters threatening

forclosure. Also, the payment for this Jan. was returned after 5 weeks, stating that they could not accept partial payment and they again referred to the previously defered 2 notes. The Feb. payment was on the way by then which they also refused and the same happened with Mar.

By April Fairbanks was in the Forclosure mode again and correspondence and phone calls had no effect. Their answer to their own Customer Advocate's committment was that " this person had been transferred"! At my wits end I finally asked what they wanted me to do and they demanded an immediate payment of $3200.00 and the balance to be paid on top of my regular monthly payments over 6 months. At this point I felt I had no other choice and agreed (due to having no other choice) to accept the new Forbearance Agreement.

Now they have reported me to be 120 days Past Due to Equifax and I cannot get anyone's attention with regard to a new loan application. I have 4 more months to pay the regular amount plus the forbearance and I am unable to meet all my other obligations and provide for other living essentials. I fail to see how a Forbearance Agreement (which means an agreed upon deferal) can be in effect and the loan can likewise be Deliquent(which means failure of a duty or obligation) or in Default (which menas failure to perform on a legal obligation). If the Forbearance is in force and valid and in performance thereof, the other conditions have been removed! You can't have it both ways.

Incidentally, I have voiced and written complaints to Fairbanks and they have not responded other than to say they are looking into the complaint. Do I have any legal recourse? What would you recommend that I do?

Email User