I purchased my first home in October 2006 while I was in Iraq doing contract work. I served in the US ARMY for 7 years, then 3 months after being out of the service - I joined a contract job in IRAQ to continue helping out my country. My sister was my power of attorney and signed all the paperwork for me. We found a brand new home in the Wildomar/Murrieta area with Beazer homes and I was pre-approved right away because of my good credit and income.

At the time, I was pre-approved for 100% financing with an interest rate at 6% on the 1st loan (80%) and 8% on the 2nd loan (20%). Beazer Homes said that if I used their mortgage company they would "throw" in 20K in upgrades and pay for my closing costs. They also said they could beat my lst mortgage interest rate with a 5.5% interest only 5 Year ARM vs. the 6% my bank was offering. This sounded perfect!

Little did we know, the loan officer was crooked (Linda Smith). She verbally told us the rate was 5.5% and when my sister signed the loan paperwork, she also explained it to her that it was a 5.5% interest only 5 Year ARM. What she neglected to say and point out in the large stack of loan papers was that the 5.5% rate was a negative amoritazation rate and that my REAL interest rate is 8.5%. (Linda Smith and Beazer mortgage would be making a killing on this loan by marking my interest rate up - that meant a great deal of money in Linda's pocket - at my expense!!!)

Once I received my closing paperwork and first mortgage statement - we realized we had been conned. Needless to say, I love this home and want to keep it. I have perfect credit and decided to pay the 8.5% interest rate for a year and then just refinance when my one year prepayment penalty was up. This meant I was stuck in Iraq doing contract work for a year more than I planned. This also meant leaving behind my new wife (married in 3/2007) in a large home all by herself. I am working to pay for a home I can not even live in or enjoy.

Now a year later with the decline in home values - I can not even refinance. EMC Mortgage could easily give me a loan modification but they say I have to leave my job in IRAQ and fall behind on my payments before they will assist me. This is bull! I am basically risking my life to be able to pay down all my other bills so I can "hopefully" one day come home and join the police force and afford my mortgage. I have worked too hard to have a credit score of above 720 to just throw it all away because Beazer Mortgage/Linda Smith and EMC Mortgage are not ethical.

Note: I am not the only buyer that Beazer Mortgage conned. My next door neighbor is in the same scenario.