So I have been watching the news and found out that what is causing the current financial crisis is mortgage backed securities. I was wondering where I heard that saying before. Then it hit me. My mortgage company!!! You see I have a Primerica Mortgage (through CitiMortgage, was CitiTrust Bank).
I got a month behind on my mortgage because I was laid off, however I have paid faithfully ever since. However, there are 2 problems that are unique with a Primerica Mortgage I am told. One, I am only paying interest now (So it has essentially become an interest only loan) and two, it is a security backed mortgage so it can not be reworked. Every time CitiMortgage calls me, they let me know they can help me with my payments then the customer service rep finds out it is a “special” loan. After hearing this for months I asked what “special” meant – you guessed it security backed mortgage. If is kind of funny now when they call, I have to explain to the rep that it is security backed mortgage when they call trying to help, they all then say “Oh, yeah .. I see your right …. Well keep paying hopefully you can get it caught up sooner or later”. One guy said “I can’t believe they sell these loans, not allowing you any wiggle room.”
If it was any other loan they would have given me a month reprieve and added the payment to the end of my mortgage and I would be paying down principle instead of only interest.
The second suggestion they always give me is refinance. Little hard because I am a month behind and because the Primerica Loan was 100% Loan To Value. So now I am stuck with only paying interest payment even though I make a full payments every time, until I can come up with an almost triple payment now because the interest is accruing.
I am not blaming my Primerica rep because I signed the mortgage. But I am definitely not happy with the rep or Primerica because the rep did not know this could happen (which shows ignorance) or did not tell me about the possibility of this happening (which shows he did not care). All he pointed out was I would pay it off faster then a normal mortgage. At this rate I will never pay it off. A different loan would have given me some forgiveness; the Primerica Mortgage has me trapped after I made one bad move.
I also have a high interest rate. I am at 10.75%. Of course I was told interest rate does not matter. Trust me, interest matters when it is accruing
If I had known the full story and ramifications I would have signed a different mortgage, one that would have given me more leeway when a bad time hit. Because when I came to Primerica for help, to rework the loan, they weren’t there. I am now trying to educate others before they make the mistake I did.