I have written a series of diaries on predatory lending. Few people seem to be a aware that GMAC owns a subsidiary called Homecomings Financial. Homecomings Financial is one of the most notorious and unstoppable predatory lenders. This company uses one of the most effective republican memes in that it is a wolf in sheep’s clothing. Homecomings rushed into Louisiana after Hurricane Katrina and did some "special" financing for homeowners devastated by the hurricanes. They made big head lines with their generosity and no one blinked an eye but those of us who were busy drowing in our own private nightmares with Homecomings Financial. So here’s the deal, GMAC wants some of that bailout money. They want the United States of America to insure their predatory loans. http://online.wsj.com/article/SB122523599523077969.html Wolf in Sheep’s clothing. They want you and I to help them screw me and you!!

You can read of my private nightmare http://www.dailykos.com/story/2008/9/17/93512/6968/609/601449 here. I have repeatedly documented the fact that Homecomings Financial has engaged in illegal behavior in the servicing of their sub prime loans. I have provided links that document one story after another, all complaining of the same violations. It makes me absolutely crazy to read these posts, but it lends credibility to the problem because the complaints have an eery invariant pattern of abuses. Read them here: http://www.complaintsboard.com/complaints/homecomings-financial-c4149.html

And if you don’t believe me, would you believe Mr. William Black a professor from Missouri University in his testimony before the Agriculture Banking and Finance Committee when he testified that 40% of these subprime loans contain banking fraud? Or what about Mr. Alan Greenspan who gave the number as 10% in his testimony before congress. (I don’t have links for either of these, but I saw them both with my own eyes. If anyone can supply the links let me know).

The complaints that you will find time and time again against Homecomings financial are the following:

1) they do not return calls, faxes or responses to certified mail. They relegate you to a voice message service where you are prompted to "leave a message" and never get a return call.

2) they put you in foreclosure and end all communication.

3) they apply payments erroneously.

4) they force insurance.

5) they charge illegal and miscellaneous fees that price the payments out of the realm of any real ability to repay back payments.

6) there is no help because the fees are a grey area that remain unregulated and they do not respond to the new gov’t help to restructure these loans.

7) they mess with escrow accounts.

These are violations of banking and finance laws. You will see people on these links are desperate for help and not finding it. I have been the recipient of well meaning advice on this board and others but none of the advice has worked to help me. I have filed a complaint with the FDIC, my attorney General and every class action lawsuit against them. They have huge legal teams which leaves the lawyers in my town, unwilling to go against them. My bankruptcy lawyer (and every lawyer I have spoken to, which includes about 15 of them) does not want to take a chance on figuring out whether or not my payments have been applied accurately because this is labor intensive. He has twice asked for my payment history and received nothing. (this is a violation of respa laws)He is concerned about the amount of work and whether or not he can win a substantial lawsuit with punitive damages in the current environment.

My concern is that Obama was for the bailout and his only suggestion to fix the mortgage crises is a 90 day moratorium. My experience with Homecomings Financial is that a moratorium will benefit them. This is what they do for six months while in foreclosure. In my case they sent letter after letter telling me to contact them, only to be relegated to a voice message to leave a message. Then they just kept piling on the fees. I had not only the house payment (I’ll pay that), but miscellaneous fees, (ballsy?) lawyers fees, property inspection fees, late payment fees…etc.

These fees almost doubled what they said I owed them if I wanted to buy myself out of the foreclosure. Today in chapter 13 bankruptcy they have me going backwards despite never missing a payment in 3 years, paying through the bankruptcy court plus my payment AND the addition of 50.00$ to each payment. I worry that Barack Obama, my choice for President, does not understand how much illegal behavior has occurred. Mr. Black in his testimony before the agriculture banking committee made the point that to date, no one has asked to see the books of this company. Instead we are contemplating bailing them out and also merging with a larger company. What?? So they can go on screwing me out of my home and committing crimes?? Or are they asking for the bailout money so that they can cover up their illegal behavior?? Are they trying to get the United State of America to insure their loans to prevent them from taking the loss? Regardless, we have yet to learn what those books contain.

As someone who has dealt with this company, they seem absolutely fearless of legal consequences. They seem unafraid to mess up my payments, or threaten me in court for nonpayment. They know that as long as they can just pile on those fees, they can pad their books, sell their loans and move on. There is something very stinky about this bailout and the fact that Homecomings (GMAC) wants this money no questions asked. My fear is that too few senators and congressmen even realize the questions they should be asking.

Don’t let the ignorance continue. I was steered into this loan as a single woman purchasing her home. I was referred to the broker through a friend who undoubtedly got a kick back for my loan. When my ex quit paying 1000 a month in child support suddenly after 10 years with no warning, it took me 3 months to get things in order, to pay the late fees from auto pays that were going through my account. I got two months behind in my mortgage and they put me into foreclosure where my nightmare began. Please understand that I don’t want anything but to get out of this nightmare loan. They say I owe so much money that if I sell the house, I would still owe them. They will foreclose on me as soon as I get out of bankruptcy AND my lawyer says we will sue but he is afraid because the fees are a grey area he may be unable to fight without help from congress.

If you have been victimized by Homecomings Financial you can join a class action lawsuit here. http://www.homecomingsfinancialclassaction.com/