I tried to refinance my house to get a fixed rate and to get $10,000 cash out for home improvements. I contacted Home Mortgage Solutions, Inc. in April 2007 from a mailer and they sent a loan officer to meet me at my home. Over the next few weeks, she proposed a new first mortgage to pay off my existing one, and a new second mortgage to give me the $10,000. She told me there would be two closings, one for each loan.
At the "first" closing, on 6-04-07, I was shown a fixed rate first and $2,000 cash to me, and I signed.
Afterward, during the rescission period, I found that the settlement statement showed both a new first and a new second together, with $2,000 cash to me, and $8,000 in fees. I had copies only of the first mortgage note and nothing on the second. I called the loan officer and said it looks like this is for both loans and the $2,000 is all I'm getting.
She told me "Don't worry about it, that's not what's happening." She assured me there would be another closing on the second loan she was still working on, which would be the "real" second mortgage, and the first closing was just for appearances, so that I could qualify for the next loan, which was to be the "real" closing, where I would then get the rest of my $10,000. I believed her, and so ignored the rescission period. If I thought this was the final closing, I would have rescinded.
In several conversations in the weeks afterward, she kept saying don't worry about it, she was working on it (the "real" second). Then her cell phone became permanently busy, as well as the office phone. The company has gone out of business. Then I received documents by mail for the second mortgage I didn't sign for. It was a complete surprise, an adjustable rate line of credit which was already used up, with payments that are already going up. The loan officer lied to me convincingly and repeatedly, and now I am being billed for two mortgages (from Greenpoint) I did not agree to.
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