Richmond, Virginia
Not resolved
9 comments

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.

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Anonymous
#43954

Franky D,

They did not offer any of that.

A mutual fund would be REAL helpful right now, wouldn't it.

Let's see my mortgage is accruing interest daily, the mutual fund would be losing money, real big help.

Why don't you admit you have a jacked up product, from what CitiMortgage said it is so bad Primerica won't be offering it soon.

You financial experts from Primerica don't know how to do anything but say how great things are at Primerica whether it is true or not.

Anonymous
#43949

Something to note is that if you would have made use of the other products you wouldn't have had this problem.

I've yet to hear of a loan (especially a higher end one) where there isn't an option to pay another say $20 for the insurance so that "in the event of" you payments will not be delinquent.

Primerica also offers mutual funds and if your rep for the company didn't mention those or a plan for a "stay out of debt fund" or a nest egg while you work the other stuff out they they messed up.

If they did and you didn't take the offer than it's your fault. I don't know enough about the issue to go beyond that, but i do hope you get it worked out without hurting yourself financially any more than what you already are.

Anonymous
#42373

As a RVP .... how does anything you said help me?

It made you feel important ... but how does it help me?

Anonymous
#41950

First, your loan is a simple interest loan - which is why you are having a challenge with it. You must pay on the due date for your payment not to wine up messed up because our interest acrues daily.

that is to your advantage if you make your payment when you are supposed to - that's why we set up our loans to automatically deduct. As long as you are not late, you will pay the correct principal and interest. Once you catch yourself up, your principal will catch up. Do the math and you will see how that works.

Also, the reason you were told that rate doesn't matter is because it is computed differently. Do the math on that as well and you will see the deception in the great lowest interest rate chase. I have many clients who are on track to pay off as they were shown - even ones who were behind and got caught up again. they are now on schedule.

yes, SOME of our loans are security backed - and that does mean that it can't be reworked without a new refinance, but you do not pay the closing costs for the part of the loan that you already did pay for if you do that. we do not double dip you. also, a final fact, given the current market conditions, citicorp trust and primerica are not currently lending higher than 95% LTV and in some markets, 90%. Had you been on time with your payments, you would have seen an average of 5-8% principal reduction or greater (if you were accelerating your mortgage additionally) your first year.

It would have been a short term 100% LTV.

Your loan will self correct, but you need to get your payment caught up for that to happen. Get back on the auto draft so that this doesn't happen again.

Anonymous
#41949

First, your loan is a simple interest loan - which is why you are having a challenge with it. You must pay on the due date for your payment not to wine up messed up because our interest acrues daily.

that is to your advantage if you make your payment when you are supposed to - that's why we set up our loans to automatically deduct. As long as you are not late, you will pay the correct principal and interest. Once you catch yourself up, your principal will catch up. Do the math and you will see how that works.

Also, the reason you were told that rate doesn't matter is because it is computed differently. Do the math on that as well and you will see the deception in the great lowest interest rate chase. I have many clients who are on track to pay off as they were shown - even ones who were behind and got caught up again. they are now on schedule.

yes, SOME of our loans are security backed - and that does mean that it can't be reworked without a new refinance, but you do not pay the closing costs for the part of the loan that you already did pay for if you do that. we do not double dip you. also, a final fact, given the current market conditions, citicorp trust and primerica are not currently lending higher than 95% LTV and in some markets, 90%. Had you been on time with your payments, you would have seen an average of 5-8% principal reduction or greater (if you were accelerating your mortgage additionally) your first year.

It would have been a short term 100% LTV.

Your loan will self correct, but you need to get your payment caught up for that to happen. Get back on the auto draft so that this doesn't happen again.

Anonymous
#38792

ummm ... that is a rotating ad from pissedconsumer.

I bet if you hit refresh it will change to something else .

I had nothing to do with the ad.

Anonymous
#38753

I find it funny how someone is completely bashing a specific product that Primerica has, and has an affiliate link...Its kind a funny, saying you can't get rid of the "Special Loan" that you currently own, yet linking people to Country Wide Loans, obviously a loan product you don't own but would like to recieve a commision or affiliate fee for.....OH..YES..THE INTERNET...The best place for freedom of speech, freedom of rants, and while I'm doing that.....here is an affiliate link pay me PLEASE!!!! You gotta love it!

Anonymous
#38294

Is sold on the secondary market as a mortgage-backed security. They bundle thousands of mortgages together and sell them as money-making assets. The problem now is that the banks who bought these instruments are stuck with too many people not making their payments, and the collateral (the home) is worth way too little.

The reason no one wants to buy the SMART loan contract is because it's a special type of loan. It's not a typical mortgage. The lender that might want to buy it has to change their accounting software, as interest is computed differently.

To the guy who missed his payment, MAKE IT UP SOON!! The same reason your payment goes DOWN quickly when you pay bi-weekly, makes your interest accrue FASTER when you're backwards. To no surprise, no one told you that because the Primericans themselves don't know it and couldn't even begin to explain why.

Bottom line, you're in a smoke n mirrors loan and you're stuck. You're upside down like most of America. You either have to suck it up, or give Citigroup another unwanted house and wait until your credit gets better in a few years.

With all these foreclosures, the banks will HAVE to relax their lending guidelines in a few years or NOBODY will qualify. Jump on the bandwagon, let them have your house.

Anonymous
#38120

Hey JIH, is your "special loan" a SMART Loan? I have a smart loan with Primerica, but was not told it was a mortgaged backed loan.

We've had it for almost a year now. We have not been late however I would like to get more information on what exactly that means to me if I have a security backed mortgage??