Downey Option ARM payment options missing from loan docs. Broker lied and falsified l

[Joel Fraser]

I was sold a horrible loan, a loan that on its face appears designed to take my house. I used a Loan Broker who I'd used before and previously rates and terms where always what he had promised. He told me there were 4 optional payments, and I did my homework and thought I really checked out the loan pretty good. I knew if I did not make the Interest Only Payment option it would accrue Negative Am, and the loan balance would Increase. I also new if I made the Interest Only payment, my loan balance would not go down. At the time I was planning on selling the house, but wanted to remodel the bath first (it was still the original 1940 bath, and in really bad shape) the rest of the house had already been remodeled, and housing prices were still very good. The loan ratio appeared to still be good, it was still at 70% of the homes value, so I figured even if the market went down I would still be OK. My plan was to pay the Interest Only payment, remodel the bath and sell. However when I received my first statement, I was shocked to find the Interest Only Payment was 1,300 a month MORE than what I was quoted. I was told it would be 2,900 a month for the Interest Only Portion. When I signed my loan docs the only amount documented was the Minimum Payment, and that of course was exactly as promised. After I received my first payment I called Downey to ask if I could pay anything in between the 2 payments and was told NO. Stupid me, I never knew this was incorrect since I'd never had anything other than a 30 year fixed loan. I remodeled the bath as planned, it took longer than expected, so when I was ready to put my house up for sale the market had dropped 100K on my house. I started looking at Refinance options but now the house was not worth enough to refi, especially at the new guidelines. My loan is now more than 60K higher than when it started, and in about 4 months it will reset to a payment I will NEVER be able to pay. I have called and called Downey about modifying the loan, but am told this loan was sold to an investment group, of which Wells Fargo is the master Servicer, so Downey cannot do anything. I have reviewed my loan documents because it just seems wrong that they dont have to document the payment anywhere...... in ths case there is NO WAY to tell if the person representing the loan is telling the truth. I have also found that the Broker Falisifed my income by adding 10,000 a month! Thats ridiculous! He was also paid 27K by Downey..... Whos liable for this? The Brokers old mortgage company he workd for at the time, has gone out of business, now he works for another lender. But who responsible for misrepensenting my income? The document I signed had the correct amount so he obviously added this line after I signed the papers and faxed it to him. Can anything be done? Or should I just give up and resign myself to having a forclosure on my credit? I am 50 years old, I bought my house 12 years ago, and yep I made a terrible mistake of refinancing it. I spent 200K on improvements, yet I cannot even sell it now for more than my loan it appears. (when I add in the agent commissions, or even on a flat fee service) I dont want a hand out, I just want them to stop the neg am for a temporary period of time. Not sure if Downey is responsible, I think they should be since they dont reflect the payments in the actual loan documents, and dont know if going after the broker that lied will do me any good. I thought the goverment passed a bill to help homeowners in my situation, what happened to that?