Our story - SE MI (Rock Financial)

[Joel Fraser]

Here's our story. Looking for some advice (waaaay down below - I ramble)... Purchased condo in late 2001 with an 80/20 loan set up through Rock Financial. Before we were fully moved in, loan was sold to a company whose name I can't remember. October 2003, was temporarily assigned to work in Chicago. Wife stayed home until January 2004, when we found a renter. A few months later, Summer of 2004, we were evaluating our options because we were slated to move back to MI in October. Working through Rock, got approved for a second 80/20 loan for another condo in the same complex. It should be mentioned now that all of the loans were adjustable, with varying terms.... Purchased second condo and moved in October 2004. Renter #1 stayed in until December 2005. Had another renter move in a few days after that. In the meantime, rates started adjusting, and we started refinancing. BUT, because both units were financed as Owner-Occupied originally, we couldn't get a good rate at this time because the rental would have to be refinanced as Non-Owner-Occupied.... Rates continued to climb, and our adjustables went nowhere but up. We were actively trying to sell both from about July 2006 to now. No offers, a few looks. Couldn't do a short sale on either because of HELOC's. We moved in with my wife's sister in March 2007, and still paid the mortgages (we were still trying to sell them, and with a 2.5 year old, hard to keep the place clean for showing). Finally gave up, and stopped paying *EVERYTHING* last summer. That's the story up to now. We're in foreclosure on both condos. Working with a bankruptcy attorney, and filed Chapter 13 last week. ------------------ We want absolutely nothing to do with either condo. Bad choices, remind of bad times - we were nothing but stressed out the last 3 years. After moving in with my sister-in-law, she showed some interest in renting her place out to us, and moving to a smaller house (she recently adopted a daughter from Guatemala), and is going through with that. So, we have a good place to live now and can afford much more. ------------------- Now for the advice request: 1) To reiterate, Rock Financial closed the initial loans on the both condos, *fully aware that there was a renter in Condo #1.* Is that mortgage fraud? Thanks in advance..- W