American Home Mortgage Servicing, Inc. (AHMSI) has set me on the road to foreclosure. I went through a loan modification with them that took over one year (and four different negotiators, all of whom made me start the process from the beginning. The final modification raised my monthly payment by $1200. I did not accept. Now they are using fraudulent tactics to try to foreclose, which, we all know is more beneficial the company than trying to work out a loan mod.
I have hired an attorney -- all of his correspondence is ignored. Even my congressman, Chris Van Hollen's office (MD) tried to intervene -- the congressman was also ignored! . . .except to hear that they were "preparing a response." That was about two months ago.
-- Their representatives in India call my home and work at least 4 times a day. I do not take the calls because they are to collect fees for which they cannot explain and each representative gives me conflicting information. In the last conversation I was told that they "used July's payment to pay for April," and that "$2500 was put in a miscellaneous account," therefore, they are requiring an extra payment on my part. They refuse to direct the calls to my attorney.
-- The servicer continues to mark me "late" every month with the 3 credit bureaus, in spite of the fact I have proof to the contrary. I sent documentation two months ago to the servicer in an effort to repair my credit with the bureaus. They have sent me several identical responses saying, essentially that they are "working on it." In the meantime they have ruined my credit. And the terms that I had with other creditors have been changed dramatically to reflect my declining score. Last month AHMSI received my check on the 5th of the month, but waited to deposit it on the 16th, (the last day of the grace period). I was marked "late" again.
-- Per AHMSI's instructions I sent them a written request to find out the contact information for the investor who holds my note. After waiting a month they responded by saying that the investor was being overseen by "American Home Mortgage Servicing Trust," thus sending me back to their main office. I want to know where the note is, who owns it . . .but that note in fact, could be lost.
My attorney has pulled every 'rabbit out of his hat' to try to get the servicer's attention, to no avail. To sue them individually would cost me 30K, so that is not an option.
My brother contacted the Maryland Assistant Attorney General's office. We were then sent to an investigator at Md's Department of Labor, Licensing and Regulation. The investigator has my paperwork but I'm not sure where it will go from here.
I realize that we are all at the epicenter of a national hailstorm right now . . .and all of our representatives are trying to figure out what to do next. But I am letting everyone know taht I can think of of the tactics this particular servicer is using to set me borrowers on the road to foreclosure-- which has not gone unnoticed by three Attorney's General in Ohio, Texas and Massachusetts, all of which have filed suit against AHMSI.
1 Updates & Rebuttals
Chayo
APPLE VALLEY,California,
USA
American Home Mortgage Servicing Inc. vs Chase Home Finanace
#2Consumer Comment
Mon, April 18, 2011
American Home Mortgage Servicing, Inc. is the debt Mortgage a debt collector for Chase Home Finance and before Chase (MERS) it was WMC Mortgage and I am not sure why the company is reporting my on credit report and Chase Home Finance is reporting the same account on my credit report for the same balance because I am lawsuit in United States District Court, Southern District of California against the lender.
A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.However, I have tried to contact American Home Mortgage Servicing, Inc. and I have not been successful with communicating with a representive in regards to my loan and why are they reported on my credit report including inquiries. Its strange because American Home Mortgage Servicing, Inc. has reported Deed in Lieu vs. Foreclosure on my credit report and I have not singed any documents nor have I talked to any representive from AHMS.
Definition of De Deed In Lieu
The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he/she would in a formal foreclosure. Another benefit to the borrower is that it hurts his/her credit less than a foreclosure does. Advantages to a lender include a reduction in the time and cost of a repossession, lower risk of borrower revenge (metal theft and vandalism of the property before sheriff eviction), and additional advantages if the borrower subsequently files for bankruptcy.
In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Sometimes, the lender will not proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair value of the property. Other times, lenders will agree since they will end up with the property anyway and the foreclosure process is costly to the lender.
Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations.
Neither the borrower nor the lender is obliged to proceed with the deed in lieu of foreclosure until a final agreement is reached.
In New York, the Home Equity Theft Prevention Act has created some confusion regarding this frequently-used method of settlement. It is unclear whether HETPA applies to deeds in lieu of foreclosure since there is no clear exclusion as there is for a referee's deed, for example. The 2-year right of recission is not a risk that banks or title insurers are comfortable with, especially given the complexities of compliance, so many banks and title insurers in New York are not willing to work with deeds in lieu.
However, I have not made any agreement with Chase Home Finance or American Home Mortgage Servicing, Inc.