Arizona Federal Credit Union
I approached AZFCU in April 2007 seeking to refinance a very high interest rate loan (predatory lender) Accredited Home Lenders. AZFCU rep told me that they couldn't refi because of my poor credit history BUT they could offer me a HELOC (home equity line of credit) based on my home equity - then $100,000. With that money, I could manage the high primary mortgage payments and repay the HELOC until August when I would be a "seasoned buyer," my prepay penalty expired and I could get my credit score from under 500 to over 700 - which would qualify me to refi both loans into one lower interest rate and lower monthly payment loan. They did not inform me that they don't "participate in loan forgiveness programs" as other lenders do. Had I known that I would have approached other lenders. I managed to comply with all of their requirements and in August returned to refi the two loans. They told me that they couldn't do that because the government had tightened restrictions on their lending. I then had two high interest rate, high monthly payment, loans to contend with. That November I became very ill and had surgery that subsequently became infected. I was put on a wound care vacuum for months, causing me to stop working as a Certified Substitute Teacher and hence restoring to living on my meager social security (about 4800 monthly). I took in a tenant who helped me with the utility bills and even helped me to pay a few mortgage payments but matters worsened and I lost all of the equity in the house. When I made the HELOC
in 2007, the house appraised at $260,000. I sought a Reverse Mortgage from the primary lender and they have agreed to settle for $87,000 of the $160,000 I owe them. In March 2009 I entered into a contract with Bank of America. All went well until I notified AZFCU's attorney, Mark Kirkorsky, of the pending closing. We rec3eived a new appraisal of $155,000, leaving only $1,000 to repay the HELOC. Kirkorsky wouldn't hear of it. He served a Summons & Complaint on my tenant whilst I was in the hospital! Before I could submit my Answer, he moved for default judgment. I managed to Answer in time and got an Arbitration Hearing. On September 23,2009, I appeared with my tenant (witness) only to find the Arbitrator and attorneys greeting each other like long lost friends. A fair hearing? I think not. I told that that "time is of the essence" and BofA is eager to close on the Reverse mortgage. We sat down and hammered out an Agreement. They agreed to release the Deed of Trust for $1,000 compensation but I in turn had to accept payment in full of the $20,000 HELOC despsit my loss of equity and no means with which to repay the loan (I fact I disclosed at the meeting) AND to repay at a yearly interest rate of 9.25% yearly for the duration of the loan! They promised not to enter judgment for six months in order to give me time to hopefully dispute the loan's validity in light of the vitiating factors. Kirlorsky emailed me the papers and demanded I sign and return them by October 14th. I emailed back that I had reservations about repaying the loan as I have no idea where the money will come from and also that I felt I was under duress because I need them to release the Deed so I ca close. In the meantime, the primary lender became impatient and served me with a Trustee Sale Notice for December 15th = aware that I am in contract with another bank and also aware that there is pending litigation which by law should stall any sales of the premises! Because of the delay on AZFCU's part, we had to rework the contract with BofA and get a new appraisal. We don't know if the property will appraise favorably and consequently I may well lose my home because of these unethical collection practices and strong armed tactics. Kirkorsky did not honor the Agreement even though the papers were signed and returned to him on October 14th. Instead he emailed me an enormous "Motion to Vacate or Enforce" that he threatens to send to the court. Is this not obstructing justice? He also alluded in his defamatory emails that "no judge in this state cares about your problems." That's encouraging news - I don't stand a chance at a fair hearing and my rights to due proce4ss are being seriously jeopardized not to mention my constitutional rights to life, liberty and property! This is certainly worthy of a test case against predatory lenders and why 1 in 2 Arizonans are facing Foreclosure. HELP! What do I do now? I don't have money for an attorney. As a former Legal Assistant, I am representing myself in this matter.