Home Banc LLC - Parsippany New Jersey

letsgomets2006 · Joined: 19 Mar 2006 Posts: 2

I recently called Home Banc after hearing their radio ad in Pennsylvania advertising a 1.25% rate.

Well naturally I assumed it was too good to be true. I know a decent amount about mortgages, having had a 15 yr fixed and a Interest Only in the past.

The broker I spoke with told me that the loan was fixed @ 1.25% for the first five years and that the interest would only marginally go up in year 6. Sounded good to me. 1.25 interest for 5 years.

I drove an hour into New Jersey to visit the Homebanc office. (NJ highways are insane) When I arrived, I was gretted with a cluttered office, looking like something out of the movie Boiler Room. I wish the red flags would have gone off then. Unfort, they didnt. The individual I spoke with apologized for their appearance and told me the same thing he told me on the phone about the 1.25 interest rate.

To make a long story short I signed the application that day and within 10 days the loan was ready to close. (more red flags) With my ire growing, I decided to being an attorney with me on closing day to review the documents.

Well he found out the truth behind the scam. It seems that the 1.25 was only an interest rate for the first month, and my real interest rate was close to 7%!!!! The broker tried to back himself out of what he was saying claimig it was all a misunderstanding.

Regardless, Home Banc tried to scam me! The sad thing is that after reviewing information on the loan they were trying to sell me, I realized it isnt all that bad if you manage your money the right way.

I was only able to find one link with any details or reviews on Home Banc.

http://en.wikipedia.org/wiki/Home_Banc%2C_LLC

Had I saw that, I wouldnt have wasted $500 in attny fees & my time on them.

I have since settled with Washington Mutual and I am completely happy. I just figured I would share my nightmare story with any others from the Pa-NJ-NY area that were considering a loan with this outfit

chow · Posted: Mon Mar 20, 2006 12:22 am Post subject:

Did you get a Truth in Lending form at the time of application, or at least within 3 days of application?

That form should have disclosed your expected payments. When the rate changes were somewhat expected. With the type of loan you were doing, it would have been tricky to read if you weren't paying attention, but there should have been some flags all over it if you had one eye open while reading it.

letsgomets2006 · Joined: 19 Mar 2006 Posts: 2

I signed it when I signed the paperwork. Home Banc kept the papers though. I really feel foolish.

chow · Posted: Tue Mar 21, 2006 11:09 am Post subject:

If you didn't get a copy of the TIL and GFE then you shouldn't feel foolish. Why don't you ask them for your money back and apply somewhere else? Giving you your appraisal money and any other fee's they collected up front would be much cheaper in the long run-because......

Your attorney could make life rough for them, and they would end up paying his fees too.