Consumer complaint received 2015-05-13
Product: Mortgage — Other mortgage
Issue: Credit decision / Underwriting — 
Company: Onity Group Inc. (FL)

In XXXX of XX/XX/2006, I got approved on a mortgage through American Home Mortgage for a home in XXXX XXXX with a purchase price of {$480000.00}. I was only making {$63000.00} per year and I had child support of {$670.00} per month. My loan officer told me there was a new loan out called a XXXX payment option loan. My fianc, at the time ( now my wife ) was suppose to be getting 60 % of the equity in a home her and her XXXX owned together, once the home sold. My loan officer told me to buy down the pre-payment penalty on the loan, so that once my wife got her money I could refinance the loan into a fixed rate. As things turned out, my Wife 's Ex-Husband ended up having the home foreclosed on and my Wife never got a XXXX from her divorce settlement. Needless to say, someone who makes {$63000.00} per year with child support can not qualify for a home that is {$480000.00}. I should have never been approved for my home. Therefore, I feel I have a strong case of " predatory lending ''. All my loan officer and the loan company were interested in was closing the loan. The full principal and interest payment on the loan was about {$3400.00} per month. I could n't even afford the minimum payment on this loan ; therefore. I came close to losing the property. My wife was trying to work things out with the mortgage company and they said they were going to help us and then turned around and put an ad in the local paper, saying they were going to auction our home off on the courthouse steps. Fortunately, XXXX of my neighbors saw the ad and stopped in to tell me about it. At that point, we got HOPE involved and they forced the mortgage company to help us. The mortgage company restructured my loan, so I would not lose my house, by giving me an adjustable rate starting at 2 % for 6 years at the amount I should have qualified for in the XXXX place and then they took all the extra money they overqualified me for and put it on what 's called the " backside '' of the loan at 0 % interest. They said I only had to make payments on the XXXX half of the loan and this " backside '' is like a balloon payment that would be due whenever I sold the house. This is not a fix. In fact, I just recently got my tax assessment from the XXXX of XXXX and my home is worth {$330000.00} and the mortgage company says I owe about {$500000.00}. My wife and I plan to make our home in XXXX. Therefore, I am being forced to be a landlord, as there is no light at the end of the tunnel. I feel I have a strong case of " predatory lending '', as all my loan officer and American Home Mortgage were interested in was closing my loan, so they could all make money. They did n't think about how all of this would effect me or my wife. An attorney advised my wife and I to walk away from our home and claim bankruptcy but we are good people and we did not want our credit ruined. We have over {$150000.00} in the home ( original down payment, money it cost to save the home & home improvements ), not to mention all the mortgage payments we have paid over the last 9 years. This is a very negative situation for us, that has caused lots of stress in our lives. It has even effected our health. My wife recently talked to the bank and they said they could offer us a deed in lieu of foreclosure or a " short sale ''. These are not options, as they would both mean that we would walk away with nothing and our credit would be ruined. We need the mortgage company to forgive the " backside '' of the loan completely, so we can sell the home and get some of our money back. This is all the money we have in the world. We 'd appreciate your help on this. Please make the bank accountable for their actions and make them forgive the " backside '' of the loan, so we can sell the home and walk away with some of our money and decent credit for our future.