Complaint Review: Ameriquest Mortgage - AMC Mortgage Services - Santa Ana California

Here's another sad story about Ameriquest Mortgage / AMC Mortgage Services. We thought they were stepping up to help us out during a time of extreme financial hardship due to an auto accident. We were wrong.

To begin the story. We finally found the house we wanted in a neighborhood we wanted to be in. We pre-qulified for the loan, made the offer, it was accepted, we closed and moved in, and all seemed to be going just great.

Then, life happened, as it sometimes does. An auto accident sent us into a financial "meltdown." The other party was at fault, but their insurance was stubborn and decided to fight paying for damages. I lost many weeks of work, then had to change to a different position when I returned to work, since I could not perform my previous duties. The new position paid less, and we had lots of expenses to cope with and no help from the above mentioned insurance company. In a very short period of time, we lost well over $25K in income we had counted on.

We had some equity in the house, but we were getting farther behind on a lot of bills due to the considerable income loss. So, we decided to refinance, cash out some equity, and try to climb out of the hole. Meanwhile, an attorney was working for us to try to move the stubborn insurance company. Good plan so far, huh?

Our credit rating had taken a hit due to our financial stress, so when we looked to refinance, we had trouble finding a lender that would work with us. Then Ameriquest called and offered what seemed to be a solution. By this time, we were desperate to try and get back on top of things.

We were under a lot of stress, so I really didn't see some things that I normally would have been watching for. For instance, Ameriquest DID NOT tell us that they were NOT including escrow for taxes and insurance in their numbers. They also DID NOT tell us up front that there was a substantial early payment penalty. I only found that out at the closing. But again, we were desperate. They proposed some numbers that were so close to what we were already paying per month that we thought, "OK, let's do it." Besides, the appraisal they showed us made it seem that we were really in a better position than we thought we were. We knew the loan was an ARM that would adjust in 2 years, but our plan was to get things straightened out and refinance one last time on a fixed rate when our credit was better. We could make it back from this trouble!

At the closing, the surprises started. I thought to ask about the previously mentioned early payment penalty. But the agent ASSURED me it would be no problem. I could simply come back to Ameriquest at the 2 year mark and refinance to a fixed rate and they would "waive" the penalty. Then I discovered that there was no escrow and the taxes and insurance bills would come directly to me. I also was distressed to see that Ameriquest's final monthly payment was roughly $100 MORE than they had originally told me, even with NO escrow.

We went ahead and closed, still thinking that we could "tough it out" for a couple of years. As the 2 year mark approached, we were notified of a substantial rate increase. I contacted Ameriquest about starting the process of refinancing. Imagine my dismay when I was told that Ameriquest was no longer doing business in my state. They told me that I would have to use another lender for my refinance, and that they WOULD impose the early payment penalty! With the penalty added to the payoff, the ratio was way wrong for us to get a refinance with any other lender. We tried many lenders, but nothing has worked out so far. On top of that, we have now had 2 interest re-sets and our payments are now around 30% more than when we started.

One final "sour note" in this sorry song. In all our talking with other lenders and appraisers, we have discovered that our house is not worth what Ameriquest's appraisal said it was. We thought we were helping ourselves when we went to Ameriquest. Boy, were we ever wrong!

Mr. David

Alabaster, Alabama

U.S.A.

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