Complain about a product or service

Downey Savings & Loan

Ledeen of Long Beach CA (06/25/08)
I was sold an Option ARM loan when refinancing my mortgage. I have had only 30 year fixed rate mortgages in the past because I did not want the risks of an adjustabe, but was really SOLD on why this loan was so great. My main problem is that the broker LIED about the actual rates and payments. On the Loan Documents there was no way I could tell that he had lied because only the MINIMUM Payment was reflected, not any of the OPTION Payments, most importantly the payment required to e made in order NOT TO ACRUE negative amortization. The Broker, Chris Perez told me that the interest only payment would be 2900, and that the principle plus interest payment would be 3200. NEITHER was true, and I could not verify this because the loan documents ONLY reflected the Minimum payment of 1,800 , which was correct.

The first months statement was a HUGE shock when it showed the Interest Only Payment of about 4,000 and the Principle plus interest payment of 4300, NEITHER could I pay! I don understand , knowing what I know today how they qualified me for this loan, At the time when I got this loan my annual income was only 78,000 the loan was originally for 565K, and at a payment of 4,000 that was something like 75% of mt takehome income! I did call Downey and asked if I could pay something in between the minimum and the interest only, and I was told NO, it needed to be either the minimum, or the next payment higher the interest only of 4,000.

So from DAY 1, I started loosing on my home. I have been calling Downey Savings now for the last several months trying to find out what I can do short of loosing the house (I do have it up for sale with just enough to pay the loans, the agents commission and about 30K for me, not even enough to get into another home.) BUT with the market continuing to decline, I dont know if I can sell. I have called everyone and anyone to refinance it but there is no way now with the higher loan, and my income that I can qualify (not unless I went into another option arm I guess)

When asking Downey Savings about a Loan Modification they claim they cannot help because they sold the loan. BUT I was never sent anything stating the loan was sold, and I still get my bills from Downey. They also refuse to tell me who owns the loan, stating they dont know. They have to know who they sold it to because they still bill me, and they have to send taht money to the company who actually owns the loan. I know someone in the lending business and they told me Downey sells the loans to anotehr company owned by them. So basically its still owned by the same company.

If I cannot find a buyer for the house in time, my loan will adjust to well above 5,500 a month , and of course even with my new job, I still cannot make that payment. I dont have much as far as other bills, no car payment, about 100-150 in charge card payments, no big debt, other than my mortgage but I will be forced into forclosure if I cannot get the loan modified, or can find a buyer in time.

I will loose my credit, my home that I worked my entire life to be able to purchase then put so much work into, all because they lied about the interets only payment. I am so embarrassed I have not even told my family of the problem with the mortgage. I am 50 years old, and just dont think I have enough time left to work my way back out of this mess should it go onto Forclosure. I would like to speak to someone who can talk to Downey.

Yolla of Concord CA (03/16/08)
We have a sub-prime loan with Downey Savings and we called to see what we need to do for a loan modification. We were told that our loan was sold to investors (without our knowledge), and the investors DON'T WANT to do any kind of modification to this loan. We asked why, and Downey said because they can, exact words of the rep on the phone! Also we asked if we can know the name of the investors and the rep said she can't give me that information. We contacted HOPE to see if they can help and we were told that Downey is on their list of lenders that does loan modification. So HOPE faxed over 3 times the paper work for our consultation and Downey still won't do anything.

We are about to lose our house because of foreclosure because we can't make the payments on time.

Don of El Monte CA (03/04/08)
I've had this account with Downey Savings and Loan since. 05/18/01 Trangen dba checking account opened - 05/18/01 closed - 01/07/08 ending balance - $322.14 Sandra Gonzalez - Assistant Manager 02-60182986 Downey Savings closed it - 01/07/08 The bank sent me a letter saying the state of CA required for me to have a business license. I never got one because it wasn't required where I lived and I haven't had one for 8 years. It was a dba account, to do computer consulting and contract work. LA County doesn't require a business license for that. The dba was kept current for 8 years. Now I don't know where my money is. Do I have a class action recourse with Downey Savings. I'm sure they did this to multitudes of others. Thanks

I've lost my main account to do business and computer contract and consulting.

Graciela of Hollister CA (10/22/06)
Got tricked into refinancing, being told that no closing cost would be charged because spouse being a U.S. Veteran. We were also told that a certain amount would be our payment for the first few years then the payment would increase. Transaction mainly over the phone. Sent Notary when signing contract.

We are now stuck having to make larger payments in order to at least pay the interest on loan. Spouse can't retire as planned.

Linda of Lakewood CA (09/19/06)
this is an issue of attitude and inability to live up to the advertisements posted all over the bank and promotions like brochures. They make it look like they are all good and friendly and will help you in issues that are not clear to customers. They mislead you to opening an account and then after that, they do not care... example, my situation could have been handled in a better way. The manager could have told me that she could take my check and deposit it that day without having to reject it after many years of bbanking with them. I was one of the very first customers that opened an account. My husband and I have accounts with this branch with a total of $200,000.00 but they do not care. It has something to do with my dba name.

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