Find a real estate attorney, someone who knows the real estate laws and ask him who he would reccomend to handle this for you. I am sure there are real estate attorneys who handle litigation law suits like this. Good luck
the reason your heloc did not get subordinated is because 2nd lien holders will not subordinate if the first lien is a cash out refinace, which yours was.
I have tried many times as an ex-ameriquest branch manager to get second liens subordinated, but all but one would not agree because on every loan, we were giving cash out to pay off credit cards and other things.
If you wanted to do a straight rate and term, then the branch manager would have been able to subordinate, but that probably wouldn't have been of any benefit to you.
Secondly, you can always re-apply for a new HELOC with the same lender. But in this case, it sounds like your credit score has dropped and you probably wouldn't qualify, otherwise, you wouldn't be making so much of a fuss about this.
Also, you can't always have your cake and eat it, too. It sounds like you got a good deal.
First, you paid off a HELOC that probably has a higher ADJUSTABLE interest rate than the one you got from ameriquest.
And second, you paid off some credit cards that i know have much higher interest rates than ameriquest's rate because credit card rates are averaging at about 17%.
And you're probably saving hundreds of dollars a month, but thats not good enough because you want your HELOC back, even though the HELOC is probably what got you in this mess in the first place.
My advice, along with many other mortgage professionals, would be to stay away from HELOCs in the future because the rates will be skyrocketing into the double digits, if they already haven't due to increasing market interest rates.
Its like have a giant credit card tied to your home. If you charge too much, and become deliquent due to higher interest payments, they can takeover your first mortgage and foreclose on your home. Its a very scary thought. Can you imagine a credit card company foreclosing on your home because you missed a couple of payments?
I'm sorry the branch manager misled you, but I'm sure he hoped he could get your HELOC subordinated before funding, but was most likely unsuccessful, but still saved you thousands of dollars in future interest payments.
And finally, if you are going to speak to an attorney, talk to one that has experience the mortgage industry.
If you would have, they would have told you right away that the majority of 2nd lien holders will not subordinate if the first lien is a cash out refinance. I hope you did not pay any thing for the consultation. If you think you have such a strong case against one of the largest mortgage companies in the united states, than maybe you should use those credit cards you paid off to pay the attorney.
I must warn you that their legal department is no joke. They would constantly make examples of people, even if it cost them more than what it is really worth. You would probably end up spending a lot of money on attorneys and you wouldn't get anything in return.
People have tried in the past for similar situations. Don't forget that your attorney wants you to file a suit, becuase they get paid whether you win or lose.
If it was such a strong case, I would imagine they probably wouldn't ask you for a retainer.