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Alostar Bank's Refusal to Resubordinate our HELOC

We have been approved HARP 2.0 loan refinance and are being held hostage by Alostar bank's refusal to subordinate our 2nd mortgage. We can more than afford the home and have A+ credit, no bankruptcies,judgments,etc- trying to everything we can to improve our position. We have been approved to refi to to a 20 year to pay the first note off quicker- shaving 1.5% off our rate and reducing the term of our loan by 5 years at the same payment! The only thing holding us up is the absolute REFUSAL of Alostar to re-subordinate. I do not understand Alostar's stance as we are IMPROVING the position of this underwater home and Alostar would STILL be second lien-holder.
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#525932

Any updates to above 2 cases?? I am in middle of loan modification process with 1st.

Have 2nd (heloc) with alostar too.

I am not looking to refi but rather get principal reduction. Not sure if alostar will need subordinate a principal reduction?

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#459602

The exact same thing has just happened to me with AloStar. This makes absolutely no common sense at all since AloStar is in the same position they were before the change. I guess the only option now is to quite paying a 50K HELOC on a house that is 150K underwater.

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#308787 Review #308787 is a subjective opinion of poster.
Location
Orlando, Florida
New Reviewer

AloStar Bank will not subordinate

My husband and I had a home equity loan through Nexity Bank. Nexity Bank was taken over by AloStar Bank while we were in the process of refinancing our home through the HARP program. We were approved by the new lender, but AloStar Bank refused to subordinate to the new lender even though we paid every payment on time and there was no new cash taken out. We just wanted a fixed rate mortgage for peace of mind. Now we are stuck because it's not "their policy" to subordinate. We are out the appraisal fee and all the savings we could have had if they allowed us to refinance. Do not do business with AloStar Bank.
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#520993

TD Bank will not subordinate our loan either. They cash our check, deny us, and just assume we will go about our lives of having our finances out of whack because of them.

This is the second time we have tried too. We will be forced to stop paying our HELOC as well if they don't help us out.

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#508289

I also ran into the same problem. I've always paid on time, 2-3 times the minimum, and have great credit.

They cost me alot of money on a refi. Now, I want to sell 1/10 of an acre of my property and they will not approve the release even though my first mortgage company already approved it. It is minimal in cost and won't affect the terms or conditions of my HELOC...same payments, same limits. I don't even care of they lock it down; they're not going to lose any money.

They are going to lose customers if they don't help. I sure won't open any other accounts with them and will discourage others.

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#460413

I would be more than happy to get involved if there was something we could do. After talking to a real estate attorney, unfortunately it doesn't sound like there is.

I have decided to take the credit hit and quit paying this heloc. That may or may not do any good with their cooperation, but I can't just let them hold me hostage like this for the next xx years.

Difficult decision since I have never paid a late bill in my life, but I guess that is what these financial institution have driven us to do. Very frustrating, especially when help is out there, without any negative impact to banks like AloStar.

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#460134

Yeah, we called and they said same story, pay it off or too bad. I wonder if there is some kind of fair business act that we can pool our resources together and take them to court. This is unacceptable.

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#459605

Same story for me. AloStar's stance makes no sense in that they are in a better position in the end by cooperating. I guess the only option is to quit paying AloStar and see if they will work with their customers down the road.

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#368193

We at AloStar Bank of Commerce understand how frustrating this can be. Please give me a call or send me an email and let's discuss.

rlittle@***.com

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#272325 Review #272325 is a subjective opinion of poster.
Location
Southfield, Michigan

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