More on the Image Masters Wrap Around mortgage:
From the LancasterOnline (Lancaster Newspapers website):
OPFM proposed a mortgage with a 3.75 percent interest rate on the $128,000 if Tim took out a $195,000 mortgage and paid the company the $66,800 difference.
Tim paid the $66,000 up front and believed he had a 15-year mortgage that would be paid off after 176 monthly payments of $935 to Image Masters.
Tim didn't realize that the 3.75 percent mortgage technically didn't exist. Image Masters contributed $581 to his $935 payment and sent a check for $1,516 to Washington Mutual Home, which held the original $195,000 mortgage.
Mortgage summaries sent each month from Image Masters showed that Tim's 3.75 percent mortgage had been reduced to $99,562 as of Sept.1.
But Tim learned in a letter Tuesday that he is responsible for the $195,000 mortgage, which had been sold to Wells Fargo in February.
Tim now owes almost $154,000, and his monthly payment has increased $581, to $1,516 per month.
Wells Fargo notified Tim that it had not received the last two payments he made to Image Masters.
Here is the complete story: http://local.lancasteronline.com/4/209805
Comments(5)