Yipes....I'm heading back to the bank for a loan?

This is what I didn't want. I'm so tired of banks...not of teni, the teni have changed for the worse over the years however it is the banks whom I'm disappointed in.

(The banks took their interest monies, hundreds of thousands and never once offered better loans or came to the rescue when the sewer line was clogged.

What actually happened were my loan payments were always made so I was a great bet, and I got sold to misc mortgage companies over the years. When you call up to ask a question you have not been a customer for 15 years, but rather you joined the bank in 2014.

I thought we would team up to conquer the world? The banks did only what they said they would. I should of gone to private investors).

Now to current events.

Unlike anyone else I've ever met, I borrowed against my residence and not the rentals.

Currently owe 218,000 and my monthly is $3,822.65 Consisting of an old first position at 6.25% and a HELOC 5.2% with a ten year amortization. PI (Tax escrow is $456 on top of that).

Refinance is quoted at 3.5%.

To continue the rapid repayment I have in place now, I would need to add $910 dollars to the monthly. I just don't like going back to banks. I would prefer individuals so that together we could work on other future projects.

Hi Smoke...

I hear you. This attitude vs. reality is a hard burden to bear. The loans are so easy to sign up for and take so long to get rid of.

Take heart, though, and don't despair. You have the right frame of mind. Do what you've gotta do to stabilize the situation, then get down to the business of paying it off.

A thought to work on the tiredness...do you have 1 or 2 small properties you could sell that would make a big dent in the debt? I always get recharged when I see the needle move in a big way. Maybe your mortgage says 15 years to go, but with a massive payment it goes down to 10, or even 7. I don't know your numbers, but when big things happen it gives me motivation to attack again and keep fighting.

We keep a chain of paper links tacked up around the top of our kitchen walls just below the ceiling. Each link represents $500 toward paying off the principle balance on our personal home. We started this about 4.5 years ago. It's been a long road, but whereas we started only knocking off 1 or 2 links per month now we're up to 5 or 6. It may sound crazy that seeing paper links get cut off that chain each month can have such a boost to the spirit, but it works.

All the best.

I like the chain link idea. Hmm, I think I may be able to do that. I track expenses to the penny so I'm aware of debt...easy to track.

Hmm

I don't have anything I can sell. (So I think). There is one shack that sits a few blocks from others, it would be a good candidate to sell simply because it isn't close and the mowers need to drive a few blocks to get to it.

Whereas other shacks, if I sold one, I risk it falling into the hands of somebody who keeps a mess. So I jeopardize not having control over our little neighborhood.

Then far away, is another matter altogether. There is no exit strategy. If I were to sell I would be hammered with taxes. I also am getting ride of four mortgages within 12 months at this point. Each one is at least 1,000 PI so it stands to reason that the shacks will have a larger budget for improvements, which will lead to easier rentals, which is fruit on tree.

Banks make me furious sometimes. I am down to two mortgages total. Those mortgages each have been bounced round to 3-4 different banks over the past 15 years. Now half the time my mortgages change hands, they have different escrow rules so I actually get a bill from thin air to bring me up to their escrow reqs.

The last two comments are capturing my thoughts.

Apparently I had some kind of expectations all those years ago. No fault of the banks yet I still feel like they really didn't do much for me as compared to how I helped them.

I was the good tenant, paid on time and kept the yard clean. But my banks are now in NY and ...and I don't even know where I send the other payments. I thought I would be walking into the local bank and talking to the bank folks and working together on the next deals.

Escrow...geez I never trusted them with that. I knew a title attorney who closed shop after a good career and there was over a hundred grand in his account from a penny here and a penny there. He didn't know how or where to give it back...it was when banks paid interest on money which just sat. This was years ago so it was a hefty sum.

Here I focus on the little bit they escrow high.....whereas the whole loan is costing hundreds of thousands over time.

Similar to Sid but not in $500 increments: every month I pay whatever it takes to bring the remaining principal down to an even number...so I make the regular payment and then give it a few days, then go look at the amount owed and pay extra principal.

So if a regular payment brought the amount due down to $223,509.63 (just to pull a number from nowhere!) I would do my best to pay $509.63. If after the next payment the amount due is $222,232.89, I would pay an extra $232.89. Or $2,232.89, depending on how flush I felt.

I always want the amount due before next payment to end in all zeros.

I also save this way. I always want my savings account to end in all zeros. Just a thing with me.

By doing this each month, I've knocked a mortgage of $368k down to $176,000 in 14 years without too much pain.

The banks aren't selling your loans to other banks they are going to servicing companies that make huge fees off of the loan. Some of those servicing companies are becoming banks i.e. nationstar.

As a Realtor I send most buyers to direct lenders. They keep the loan for the life of the loan and their rates are slightly better than traditional banks. Closing costs are a fraction of the banks. I sent a friend of mine who works for Wells to Loan Depot. Wells wanted $14,000+ for closing costs she paid <$4,000. They don't gouge you since they hold the loan. If you are looking to refi try Quicken, Loan Depot or Sebonic.

Things change over time. Sometimes it's hard to get a loan and other times it's hard to find a property to buy. Banks have also given me trouble over the years.

When I tried to buy my second rental at age 18, the bank changed their mind because I was too young. My lawyer changed the banks mind because age discrimination is a actionable offense when the borrower qualifies and could by the property for cash!

Then when I was buying a shopping center via a 1031 exchange I was half a million short from the exchange proceeds. So Citibank said, "we want your real estate business, give us a change". SO I applied and was rejected because they changed their policy and only give out a minimum of 1 million dollars on a commercial property. This was close to my deadline. So I closed several account with them to cover my shortage of funds. I had the cash in various investment accounts but their various departments didn't look at the total picture.

I look at it this way. They need us as customers, we don't need them if they won't play fairly.

Also one time I needed a loan and went to Mr. Landlord loans. Dave asked me a few questions. I was sent a few forms. Like magic a mortgage broker as relationship with Lenders that have money to lend. The deal closed within around 30 days.....They were great. This was back in the middle of 2007.

Smok,

I feel your pain.

Almost all our loans were sold to others who don’t seem to be able to find our payment which we send with tracking and signature required. They signed for it but cannot find it. This repeats month after month.

Borrower is slave to the lender.

That’s why we have not borrowed since 2006 amd are selling properties to pay be debt free.

If SHTF we’ll be OK.

Wow guys Im sorry you have to deal with this . I am now and always have been soooo grateful for our one hometown small brick and mortar savings bank. Where they know my face and even my voice when I call loan dept . OûOûOûOû

However we have 2 “big bank”loans to deal with . And another small town bank with a few branches made me so angry a few years ago we spent 3 years working our tails off to get out of there. They deceived us by words on a renewing a ballon note and at paper signing time required everything we owned for collateral. My husband had such a tight hold on my leg when we were presented the docs my leg hurt. He knew I was about to blow it was a horrible experience . But we are out of there and one by one as loans were paid off in those 3 years I believe the loan officer and our commercial loan guy knew what we were doing and why. I was so angry at them for the blunt deception until I realized they are pawns doing the dirty work of the bank board then I felt so sorry for them. Good people forced to do things against there morals and standards to keep there jobs. I’m grateful we don’t have to do that !!!!

Banks are our business partners they needed to be interviewed screened and chosen as carefully as our tenants that are also our business partners.

Thanks for the comments. I looked deep into the past and realized where I may have picked up the notion of banks helping.

My friend used to build houses in Florida. Super fast...six weeks. It was amazing. Due to money the houses were only built one a year. This was not a giant but rather a regular person asking the bank for construction loans.

The last house, I recall that a phone call was made to the bank, the money was deposited in draws to my friends bank account and the actual loan papers were signed after the house was finished. Everyone thought that was a bit funny but that is how things played out.

That banker was helping my friend.

MS BIZ: I have a close friend who is in management at Wells. She's a really decent person except when it comes to the recently acknowledged atrocities that Wells has foisted on their unsuspecting customers like opening CC in the customers names without their permission, modifying mortgages without notifying customers and then charging them for paperwork snafus they weren't even aware of and the 800,000 auto loan customers charged for insurance they didn't need.

I am appalled when she tries to defend the bank for their indefensible and blatant corporate greed and deception.

Ah yes, Bank of America. Back when money was crazy tight. I was living paycheck to paycheck but I was above water. Sometimes I was late by a week or two. So they would charge me two fees. Two fees you ask?

One being the late fee and the other which was double the amount. Was some fee where they said they had to do a drive by of the house to see if it is still lived in. So instead of 40 dollars in late fees it was 115 dollars. This is for being a week late after their grace period.

Then came the one day one of these drive by guys from the bank actually entered my home while I was in it. How did they enter my home? The person crawled through my kitchen window, I kid you not. Crazy part was I heard someone I started screaming from my bedroom obscenities and ran to get my gun. When I searched the home, no one was there but my kitchen window was wide open, screen off the hinges, stuff knocked off the kitchen counter and my front door was open that was locked.

Then came the false 30/60/90 day lates from BOA that stayed on my credit report for 7 years. How is someone 90 days late that pays a week late? How could someone be 90 days late when foreclosure starts at day 60? Countless phone calls to countless supervisors to dispute the late fees. I also wrote letters to all 3 credit bureaus but nothing was resolved. What did they do? They never reversed the lates and then sent my loan to Greentree.

Then Greentree charged me extra escrow because that was their policy. Funny part is when my loan went from Greentree to Ditech then after I never saw that extra escrow payment I made. Yup.

Greentree to Ditech.....I've got one of those. I do not care for Ditech. I called them with some questions and was treated like I was in court....as a landlord.

It really caught me off guard, the lady must of been having a bad bad day.

I've read your every word, then gone back to read it again. Someone else would imagine that you must of done something wrong, but experience tells me that the banks do in fact make mistakes and when you try to point them out they get very testy.