Complain about a product or service

Downey Savings & Loan

Cynthia of Glendora, CA October 9, 2008

I agreed to a negative home loan about 4 years ago, the payments went up way before they were scheduled to, and we did negotiate for a loan modification , which we were granted - about a year ago, the payments have become difficult to make and we are behind one month on the mortgage.

A mortgage broker actually encouraged my husband and I to get this negative loan, with Downey Savings, I realize i signed the loan docs, and agreed, but i really believe I was taken advantage of, and I'm sure the mortgage broker - Budget Real Estate- is the broker who has represented me, I'm sure he made a big commission on this loan, he has lent me money when i needed to pay property taxes, but i'm sure he felt guilty, he knew my husband has a disablily and receives disability income plus part time work as a community college science teacher,

i read the consumer complaints on your web site about similar issues with Downey Savings and mortgage brokers who did the same thing, Is there any help for me that you can think of, we are just behind one month on our mortgage because of other large cost of living expenses, I know that countrywide customers have received help I feel that Downey Savings mortgage customers, have suffered similar faulty loans and need tha government help as well.

Nicole of Santa Clarita, CA September 26, 2008

I was a victom of creditcard fraud and was promised a resolution within 90 days. Apparently the ATM card number was taken after I got gas. The next day the Visa fraud protection services contacted me to let me kown someone was using my card. When I went into the Huntington Beach location, the manager promptly took my ATM card and had me wright a statment. She told me it takes 90 days to reaserch and then I would get a new ATM card. I was really irritated that I would be without a card for so long but relived to get it taken care of.

A few weeks later I went in to withdraw money at the Stevensons Ranch location and asked about the status, the teller told me then that I would have to drive to the Ventura location after the 90 days and request a card from the bank manager, she went on to tell me that he will decide IF I got another card or not!

Now 4 months later, I still have not gotten a card, or an answer on why I am being punished for someone else using my number. I have been with this bank for 10 years! I have never been overdrawn, bounced a check or deposited a bad check, why is it ok for them to treat me this way?

I can no longer get money out when I need to. I would just swich banks but everything is on automatic payments and deposites, I feel stuck!

Geretha of Gilbert, AZ August 22, 2008

i refinanced my home with equity finanical. downey savings paid them 8,200.00 rebate for this bad loan. downey informed me that i should never have been givin this type of loan. they say my investor's are wells fargo.

i will have to foreclose on my loan soon. i'm going to write the F.B.I to investigate downey savings and equity financial. they are doing some underhanded things to homeowners. lawyers should look at class action suits againt them

Miriam of National City, CA July 15, 2008

In September 2004 I decided to purchase a new home. We dealt with a broker that I met once mostly talked to him over the phone. I was an existing homeowner and sold my home and applied 125k to the new home. I was told my payment would be around 2200 to 2400 a month. No one ever explained this Negative Amortization or that my balance would increase along with my payment.

After a year of making payments I began to notice my balance increase. I immediately decided to put the house on the market to hopefully save some of the money I put down. I contacted Downey Savings, I wrote letters to all the Board of directors, VP, SVP, and requested that they let me out of this horrible thing they called as loan. Because I had a prepay penalty.

They sent a response stating that I signed the paper and that I was responsible. Meanwhile the broker walked away with over 10k in commisions? I'm trying to save my home but I'm way over on the value and amount I owe the bank. Is it really worth it?

I may lose my home and can't afford huge increase in payments.

Ledeen of Long Beach, CA June 25, 2008

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 March 16, 2008

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.

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