Vericrest Financial
Vericrest Financial has not accepted federal TARP money nor signed onto the Obama Making Home Affordable Plan. Therefore, Veriquest is not required to cooperate with the Obama Plan and has chosen not to do so.
The primary leverage available against Vericrest is the threat of letting a property go into foreclosure. Vericrest appears to be unimpressed by accusations of predatory lending.
We settled a Vericrest modification in September of 2009. This was a rental property which was around $50,000 underwater. The Borrowers were both on disability and had not made payments for nine months. The balance increased over this period from $404,000 to $433,000. This was a 3/1 ARM loan with a fixed rate for three years at 8.6% per year. Thereafter the interest rate was to be based on the one-year LIBOR plus 5.1 points. Although the one-year LIBOR is currently under 1.5, it has been as high as 5.4 as recently as 2007.
The Borrowers bought this property on an owner occupied basis. They might have gotten a better modification if they had not rented the house and moved into an apartment, or if their lender had been subject to the Obama Plan.
The property was days away from foreclosure when we settled the modification. Fortunately, one of the Borrowers had gone back to work and income was sufficient to convince Vericrest that the Borrower could make payments.
Vericrest agreed to call off the foreclosure, add unpaid interest over the nine-month period to the balance, and give the Borrowers a 5.0% rate for two years. Thereafter, the loan will return to previous terms and will be subject to further negotiation.
Because of the fact that this was a loan with a lender which had neither accepted the TARP money nor signed onto the Obama Plan and the fact that the property was a rental, this was a not unreasonable resolution. Lowering the Borrower’s rate by 3.6 points saved him $31,000 over the coming two years.
Yeah cit/veriquest duped me and my wife 10 yrs ago when I lost my job. I had a nice 8% fixed rate through my hometown lender and when I got behind refinanced with cit. My rate has never been below 10% and my payment went from $550 up to $900 on a 80k loan that they appraised the house value up to 130k for their own interest while my home was valued at 72k. My payments are current but they have financially handicapped my family and if I find the right lawyer i’m gonna sue the pants off someone!
I cannot make any guarantee that I or anyone can help you modify this loan. Veriquest did not accept the TARP money and therefore is a law unto itself — unless there are specific violations of RESPA or TILA. Further, there is a three-year statute of limitations on most violations. I would suggest you get your loan professionally audited. That alone might not help unless you are willing to hire a lawyer to sue. The big banks are in the power position. Feel free to call.
I am behind a payment and a half to Veriquest I cant get them to defer my payment. I would like to do a loan modification. If anyone has anything to help I would really appreciate it. Thank you very much.
Tim, please describe your situation in greater detail. What state are you in? I have had success modifying Veriquest loans.
Tim, my situation is similar to yours. As a matter of fact, I am not even behind but for some reason, I owe then more than $1,500 which I can’t seem to understand how that happened. My interest rate is about 10%. I am on an interest only 2 ARM that adjust (this I didn’t know either) every 6 months. Somehow recently, I noticed that they started applying some of it to my principle. I am unable to follow their documents and can’t seem to get anyone who is courteous enough to help. They call me up to 11:00 at night including Sundays and now I just hang up on them. Don’t know what to do.