Submitted:
Friday, January 03, 2003
Posted: Friday, January 03, 2003
Lynwood,
Illinois
This company has deceptive business practices. They engage in predatory lending. Through my own research, I have discovered that they appear to target minority groups and ones with some credit issues, convincing them that they will be unable to secure mortgage financing from traditional lenders. They place customers in high interest rate loans, with exorbatant pre-payment penalties. They contract with property appraisers who over value properties, in order to secure higher loan amounts. Which makes it impossible for customers to refinance at lower fixed interest rates or for that matter sell the property.
The interest rates are only fixed for the first 2 years and then become adjustable and can increase an additional 6% over a 4 year period of time. Which means that your payment WILL increase by 700-800.00 per month and when customers express concern about this adjustable rate their response is that you can refinance in 2 years and avoid this adjustable rate. However, what they fail to explain is that there is a prepayment penalty of 6 months interest should you refinance within the first 3 years of your loan. Which means that if you refinance within the 2 years as they suggest you will have to pay a prepayment penalty, and if you wait the 3 years to avoid the pre-payment penalty they your interest rate will increase.
Basically, there is no way out of this loan. You can't sell the property and you can't refinance it either, unless you have the means to come up with a large sum of cash, and Ameriquest knows this and they have thrived by making it nearly impossible for customers to get out from under these loan terms.
Stephanie
Lynwood, Illinois