Complain about a product or service

NovaStar Mortgage Inc.

Darren of Lyndhurst, OH February 15, 2008

Darren of Lyndhurst OH (02/15/08)
I contacted NovaStar mortgage several times regarding my ARM. I spoke with Charla in the prevention workout department hopinh they will assist in modifying our loan. In June of 2007, Charla stated we needed to fax documents along with a completed application stating our income, expenses, etc. They ran our credit which Charla stated they would not have to and they did not assist us anyway. In July of 2007, after not hearing from Charla for over a month, her coworkers answered for her and asked what have we done to help ourselves? I informed them we are going to be increasing our household income by 15,000 and we were going to pay off old debts and we had a budget in place. Still no assistance. Two months later my mortgage was transferred to Saxon mortgage company. We currently have a 13.75% interest rate which started off at 10.15%. We signed the documents to our new home and we were excited in July 2004. The first two years were good but then the ARM began. Although we did not know or understand what was going to take place, we know NovaStar mortgage did.

We have a monthly mortgage payment that someone with a low interest rate may pay for a 300,000 home and we do not have a 300,000 home but we love our home. We are barely making our monthly payments right before the 30 day mark hits to avoid credit bureaus being notified. Don't mortgage companies obtain enough money from individuals, why can't all loans be fixed especially when payments have been maintained and not missed a payment?

Jo of Denver, CO February 11, 2008

Jo of Denver CO (02/11/08)
In December 07, Novastar called me to 're-evaluate the loan'. Said I could re-fi at 6.5 %, fixed, for 30 yrs. Great. The agent said since my original loan was with Novastar, they could disregard the pre-payment penalty. An appraisal that costs 350 and 3 weeks later, I had a closing date supposedly set for Friday, Jan. 25th. I called numerous times on the morning of the closing, no answer. I called on Mnday. The supervisor, Brian, said they couldn't do the loan unless I could come up with the 12K to cover the prepayment penalty that was supposedly waived.

I asked for re-imbursement of my appraisal fee, because I had it done in good faith that the loan officer was truthful about waiving the pre-payment fee. The supervisor said he'd call me back and let me know. Of course, I haven't heard back, and now they are out of business. (The appraiser was local and did receive the money.)

Dawn of Long Beach, CA February 1, 2008

Dawn of Long Beach CA (02/01/08)
In Nov of 2006, we obtain a home loan in long beach ca. from novastar mortgage. Just before the close of the loan there was a house fire. I was talked into letting the loan close by everyone in the case. They insured me that the house would be fixed. So the loan close in Dec 2006.

The broker said we would not have a payment until Feb. but that did not happen. I called novastar and asked what is happening as the house is not fix and it was over 150,000 damage. They said that they could not help since we had paid for the house. We had two house notes. The insurance co. did pay in 4-20-06, but the payment went to the old owner who took off with the payment. I called novastar almost everyday to get some kind of help but all I get is that I have to pay for the loan. After many times calling novestar they agreed to let me do a short sell that took them over 30 days to ok. Never nice, I asked for a hardship but they said no. Even after showing them all the paper work on the house and doing our best to pay two house we never got to move in to. They just did not care. I belive that they know about the fire now. I also know now that the loan should have been lower. Before the fire it was for 409,000 and at close it was the same.

I have damage loss to both homes, 198,000 on short sell, credit lowered a lot, no help to get the old owner who just walk away with 150,000. We have made payments on a house we never could live in. The broker had us put a 1,2 mortgage and we could not get a loan to fix the house. I think I will never believe no one again. I had to lose my dog I had had for over 5ys as I am now living in apartment.

Judy of Marshalltown, IA January 16, 2007

Judy of Marshalltown IA (01/16/07)
My mother in law refinanced her home with Simplicity then the loan was sold to NovaStar. They convinced her to borrow 112,000 on a house that is only worth 60,000. They were very high pressured and refused to tell her the monthly payments.She and her daughter went ahead and signed the loan papers and now they are not able to make the payment. It is their own fault but NovaStar refuses to work with them to lower the payments and now are threatening foreclosure.

My mother in law and her daughter will in all likely hood lose their house. They have nowhere to go to live!

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