• Report:  #46976

Complaint Review: HOMEQ SERVICING CORP - SACRAMENTO California

Reported By:
- Madison, Ohio,

P.O. BOX 13716 SACRAMENTO, 95853 California, U.S.A.
800-326 3449
Tell us has your experience with this business or person been good? What's this?
Based on the other complaints I've read about HOMEQ, I consider myself fortunate.

I took out a Home Equity loan through First Union back in 1997, for $25,000. HOMEQ Servicing Corp. took over my loan after the first year in which I made payments.

I was able to avoid getting ripped off too badly by immediately repaying about $5,000 that I ended up not needing. And last year I was able to sell my house, and pay off the remaining balance of my HOMEQ loan, and since I'd already made 36 consecutive payments, ON TIME, I avoided the $750 "pre-payment penalty". [Don't you love that? They make you pay a penalty for paying them too soon!?!?!]

But, just so you don't think I didn't get screwed by HOMEQ, too....it's time to file my 2002 taxes, and lo and behold, HOMEQ never sent me a 1098 mortgage interest statement, and conveniently, the 1 800 number on last year's 1098 is no longer a working number.

I tell EVERYONE I know to avoid this company, and I consider myself lucky for learning about this type of "lender" without it costing me more than it did.

And I LOVE the b.s. rebuttals from HOMEQ, it's NEVER their fault, it's ALWAYS the customers' fault, and it always boils down to "should have read the contract", "daily interest" blah, blah, blah.

To everyone who's had a problem with these jerks, don't stop complaining, and for God's sake, write your Congressman. Together we can lobby all our representatives to put these jerks out of business.

Cleveland, Ohio veteran of the predatory lender


Madison, Ohio

1 Updates & Rebuttals


Collections Response

#2UPDATE EX-employee responds

Wed, February 26, 2003

First off, and this is not to defend HomEq at all, let me clarify a couple of things though. You mention that you took out a Home Equity loan in 1997 with First Union National Bank. That is whom you should be upset with. HomEq does not, and has never originated, a single loan. Not even one loan. They are merely a loan servicing agent for other lenders. In your case, they are servicing a loan made by First Union National Bank, who also happens to be the parent company that owns HomEq Servicing. Also, although I disagree completely with the usage of such, in many cases a "Prepayment Penalty" is a tool many lenders use to assist them in making a profit from lending individuals money. That is something that would have been spelled out very clearly in your original contract, usually within the first couple of paragraphs of the legal jargon. I don't personally agree with it, but it is generally used to ensure that the lender will get some type of return on their loan. Most cases the "Prepayment Penalty" is attached to a specific length of time. Such as if the loan were to be paid off in the first 36 months, for instance, there might be some type of flat rate penalty. If a lender makes an individual a loan of $20k, over a period of 15 years and at an interest rate of 8% - for instance - but the individual pays it back in say, 24 months. Although that is great on behalf of the borrower, the lender has made very little on his investment. So, to increase their margin of profit, the "Prepayment Penalty" was conceived. Again, I don't defend it, I just want you to clearly understand it. Finally, if you have not been able to contact anyone to get your 1098 from HomEq - you might try the Customer Service number that I have listed as follows: 877-867-7378. Good Luck.

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