Our goal is to put Midland Mortgage out of business - forever! They broke the law numerous times as well as breaking the rules of Regulation Z - something every mortgage company is required to follow in order to do business as a lending institution. They just recently ripped us off for an estimated $10,000! According to the National Mortgage News, as of 3/31/98 Midland Mortgage, Oklahoma City, OK is servicing $14,398,000 in loans. How many more people have they ripped off??!!

You will learn through this example what it takes to start trouble for a crooked mortgage company. In the past we made a mistake of allowing the people in the mortgage company hide behind their lawyers who do knowingly do illegal things. This time we are taking on not only Midland Mortgage, but the lawyers as well -- and put them out of business, too. You will see all the documentation so you will appreciate what it takes for the TRUTH TO WIN!

RIPOFF #1
The amortization of your loan is calculated either from the wrong base loan amount or the calculations are mathematically incorrect. In the case of LOMAS MORTGAGE, this was their standard procedure. They would take you for a few dollars every month.

Here is something important for you to understand. If a big lending institution takes just $1 extra from every customer, it will generate hundreds of thousands of dollars for the company. Lomas Mortgage had thousands and thousands of customers - possibly even a million customers. Sorry, folks, but just $1 from a million customers per month puts an extra $1 million dollars in the company's bank account every month -- over one year it equals $12 million, over 30 years it equals over $100 million! Well, you get the picture.

By the way, Lomas Mortgage had a class action lawsuit filed against them. Before it went to court, they went out of business and filed bankruptcy. They are no longer in business! (We know, because at the time our mortgage was with Lomas and we were part of the suit.) Lomas laughed when the class action suit was filed ..... they aren't laughing any longer!

Although our first objective is to put Midland Mortgage out of business, through our description of events that we experienced with them, you will learn how to fight against these financial giants. Don't despair if your mortgage company is cheating you. If you remember, all the S&L's went out of business. And more banks are going out of business or merging with other banks every day. It is up to us to get rid of the crooks -- including the lawyers working for them! If you aren't careful, the mortgage companies will cheat you for all the money they can get.

Here is the first thing to check to see if your mortgage company is taking advantage of you. In this example we are using actual numbers for the property involved with the Midland Mortgage problem.

1. Original Loan Amount: $49,824.00 amortzied over 30 years @ 9% interest.
2. The monthly payment (principal & interest) should be $400.90
3. The mortgage company is charging us $401.08. Yes, 18 cents is not much money, but if you do this to 1 million accounts over 30 years, it becomes a lot of money!

RIPOFF #2
The mortgage companies try to rip you off with impounds -- they money they collect to pay your taxes and homeowners insurance. There used to be a time when the financial institutions went wild, highly over-impounding your monthly payment. A few smart people began to complain very loudly about this practice, so new laws came to life and they are not allowed to increase your impounds indescriminately.

This is the way to calculate what your impounds should be:

1. HOMEOWNERS INSURANCE. Find your policy or call your agent and find out what your yearly premium is on your policy. Divide that total by 12 to get the monthly payment for homeowners insurance. (If you live in a condominium, your hazard insurance is probably paid for by the homeowners association and is not included in your payment.)
2. PROPERTY TAXES. Call your Tax Assessor's office and find out how much the taxes are on your property. They must send you a computer printout within 14 days. In some states this is a law. Divide the total taxes by 12 to get your monthly payment for property taxes.

Here is a ploy the lenders like to use. They like to pay the taxes but show a shortage in your impound account due to the new increase in taxes and assess your yearly payment with that shortage. However, if you think about it, the shortage is going to be in the future -- the future tax payment for which they are creating a shortage today. When questioned, they will "dance around the answer" and never give you a straight answer unless you know the game they play. On this site you are learning about the lenders' games at no charge to you!

*** Remember, if you let any bank, lender, or mortgage company know that you do not know anything about how they operate, they will rip you off considerably. They may even try to double the taxes for one year. Why? If they can get as much money as possible from as many people as possible, and use the money for making more money, then why not!! Money today costs more than money tomorrow.

To Recap: To determine your CORRECT monthly payment, calculate your princpal & interest, add 1/12th of taxes, and 1/12th of insurance. This will give you your PITI - principal, interest, taxes, and insurance.

There are some exceptions: If you bought your property with less than 20% down, there is an additional charge for Private Mortgage Insurance on conventional loans, Mortgage Insurance Premium on FHA loans, and a Funding Fee on VA loans. Each is different -- you need to find out what your charge is and add that onto your payment.

Here's something interesting that people are totally unaware of. If you bought your house on an FHA loan and sold it (or refinanced it) in less than 10 years, the U.S. Government owes you a refund! Millions and millions of people sell their homes in 2-4 years, never knowing there is substantial money owed to them. If you are one of these people, contact your local Dept. of Housing and Urban Development Office (HUD), ask them to send you the form you need to file. The government will send you a check. Why didn't anyone ever tell you this? Sorry, but the rich get richer, and the poor get poorer. The Government likes to use your money to make money! What else is new!

RIPOFF #3
The mortgage companies try to rip you off when you buy a home. Sometimes you can pay up to 10% of the loan amount in costs. You pay charges which really don't exist. You may be charged for fees which you may pay later when you want to refiance. You may pay thousands of dollars you really don't have to pay if you don't know what you are doing.

This is especially true if your credit is less than perfect and you are willing to take some beating just to get the house. BUYER BEWARE! The mortgage companies will take advantage of YOU.

Now we will continue with our war against Midland Mortgage and their legal counsel, the law firm of Jack Farley in California.

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