R Schiller

Get to know R Schiller

BUYERS BEWARE OF USDA RD MONTANA...  We purchased our home in 2007 with a first time home buyers program through the USDA rural development.  The mortgage is a loan leveraging program, where the Montana board of housing loaned us the 20% down, and the USDA had the remainder of the loan.  The Montana Board of housing would only do these loans if they were the 1st mortgage, and the USDA was the 2nd.  My husband lost his job in August of 2010.  At that time I contacted the USDA and MBOH to see if there were any options available to us, such as a loan modification.  I sent in Loan modification applications to both the USDA and MBOH in Sept 2010.  I did not hear back from either, I called to ask about the application, and at that time was told that they (both the USDA and MT Board of housing) did not offer Loan modifications, that the only thing we could do was to pay what we where behind in full, as they would not accept payment if it was not the entire past due amount.  They actually sent our checks back.  In March of 2011 my husband went back to work, but by this time we were over 10,000$ behind.  In July of 2011 we applied and were approved for the Emergency home loan program.  In September 2011, We received notice from the EHLP that we were approved, and they would contact us with a closing date.  In January 2012 we received another letter from EHLP stating that they were extending our loan commitment until March 31, 2012, because our Mortgage company (USDA Rural Development) would not respond, or return phone calls.  We again submitted all of the phone numbers, addresses, loan numbers needed to contact our mortgage company.  We received another letter the 1st of April 2012 stating that due to no response from our lender we were now ineligible.  Also in March 2012, Cindy Donnell the area director for the USDA came to our house personally and talked to my husband about restructuring our loan, with a refinance/modification, we wanted to only have 1 mortgage instead of 2, Cindy Donnell at that time told us the only way for the USDA RD to be able to do that is if we let the 1st mortgage through the MBOH foreclose, they would Buy them out at the foreclosure sale, then they would refinance the entire amount, drop our interest rate and make our mortgage affordable.  So we were not worried when the first Mortgage foreclosed, the USDA RD bought it out.  However we receive a phone call from the USDA notifying us that they have bought our house, and we have 10 days to vacate the premise.  In our closing documents we signed from the USDA in the event that we became delinquent in our payments there are options available.  One being a Delinquency workout agreement, where the borrower  agrees to pay and extra amount each month in addition to the scheduled payment, to bring the account current within 2 years, Another option is a Moratorium: Borrowers who continue to personally occupy the property may apply for a postponement of payments for up to 2 years if, due to a loss in income beyond their control, they are temporarily unable to continue making scheduled payments with out unduly impairing their standard of living. Every time we spoke with the USDA they told us there was nothing they could do to help up.  They have lied to us, mislead us, and basically stole our home.  We would have filed for chapter 13 bankruptcy and forced them to work with us, if we knew they were not going to refinance/modify our loan.  We are now recording all calls between us and the USDA, and can prove that they are lying, as Cindy Donnell told her Boss Tom Atkins, that she came to our house and offered us the refinance/modification in March of 2010.  In March of 2010 we were current on our mortgages. We want to keep our house and get them to work with us.

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