Complaint Review: AHMSI

Two years ago, after my husband had lost his job and we were out of money, we notified AHMSI that we could no longer make the house payments. They offered to do a Deed in Lieu of Foreclosure, which was fine with us. We never got any documents, just more and more correspondence and phone calls. We kept saying that we could not make the payments any more, they kept offering the Deed, which we never got. 

We filed for bankruptcy last year and AHMSI was notified - evidently to no avail. We sent the keys to the house to their attorney and told them we were out of the house since they never sent any Deed in Lieu to us. During all this, the house was totally destroyed in the flooding of the Missouri River in 2011. Thankfully, we did still have flood insurance on the house. Since the house was a total loss, the insurance company paid the $95,000, which was sent to AHMSI in October 2011. We have talked to them on several occasions, saying the $95,000 was more than the balance on the loan, which should be showing as paid off.

Not so, according to AHMSI. They still show the loan balance of around $86,000 plus an additional $20,000 for 'various foreclosure expenses - including flood insurance on a house that isn't there. To date, the $95,000 has not been applied to the loan- it shows sitting in a 'restricted escrow' account, accumulating interest for AHMSI I am sure. To make it worse, the house is now up for sale for property taxes not paid and, in a separate sale, foreclosure sale.

This ought to be just great-one person buys the property for taxes and a separate person buys it in the foreclosure sale- property that can't even be built on again!