Consumer complaint received 2016-03-08
Company: Franklin Credit Management Corporation
State: CA
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
I have a XXXX and XXXX mortgage on my home that I took out in 2006. I have struggled for years to keep up with the monthly payments on both loans. My income has drastically decreased over the last several years and the main source of income was mostly brought in by my husband. We almost lost our home a couple years ago when we fell behind on the first. We were successful at modifying that loan, the payment is still high but we were able to afford it. The result of my declining income led us to then fall behind on our XXXX. This is when our real troubles began. The XXXX is with Franklin Credit and they have turned out to be extremely difficult to work with on any foreclosure alternative. The modification plan that we were finally approved for asked for a hefty down payment and increased our payment 3 times higher than it was before. After seeking help from several family members in an attempt to borrower the down payment Franklin Credit wanted-which would put us in a deeper hole. We had to come to the realization that even if we could borrow this money from family we could not afford the modified payment that was approved, it was almost XXXX a month- on top of the payment for my XXXX which is XXXX. Additionally our family members can not offer us any help because we owe over XXXX on my XXXX. It was just impossible. Through all these problems, my husband and I have now separated. At this point I would like nothing more than to resolve this debt and short sale this home. Another feeble attempt! I listed my home and accepted an offer to send in for review to FC. The agent we are working with is now encountering the same rude, unprofessional behavior that I experienced, they refuse to let you speak with a manager and hang up on you. IN an effort to continue to work with them several offers have been made to them, along with a request for a payoff demand of my loan, all were just flat out denied. This bank gives no direction, no counter they will not reveal the market value they believe my home is worth- this is what is affecting their decision! They advised my agent that they believe they will make all their money back at foreclosure and still pay off my XXXX. Withholding this information is just plain out underhanded- what do they have to hide? They tell us that this information is private but I have a right to receive any appraisal or valuation on my home made by them-especially one affecting any decisions for foreclosure alternative programs. They are forcing me into foreclosure and to make matters worse California is a recourse state for any loan that is not purchase money, this was a refi. I hardly make enough money to pay rent now I have to now worry about having them come after me when they realize that they over valued my home and wrongfully foreclosed instead or just be forced into bankruptcy! When they have to sell my home as a REO, because it needs repair and finally realize their value was inflated they will try to sue me, my home is underwater by the XXXX. We could have worked this all out, I have been forthright in my dealings with this institution. All I ask is to be given the opportunity to try and resolve this debt with them, to have them kindly work with a person going through a real hardship.

Company response to consumer: Closed with explanation