Fairbanks Capitol - Contimortgage ripoff via establishment of unknown escrow account that was accumulating interest alongside of our primary mortgage Salt Lake City Utah

A couple of years ago we fell behind in our
mortgage payments. We were foreclosed upon.
No buyer could be found for the property in
Massachusetts.

Contimortgage called us and wanted to reinstate
the loan agreement if we could reach some sort of
terms to bring the breach current. We agreed. In
about 14 months the delinquent amount had been
disposed of and the loan was current.

Last March(2003) we decided to refinance with
Ameriquest. We were told that after all debts
were paid off that we would receive a cashout of
around $7000. Happy days!! A few days later
we got a call and were told that Fairbanks
(Contimortgage) had contacted Ameriquest and
informed them that another account needed to be
paid off.

It turns out that Fairbanks seemingly established
this account when the loan breach makeup terms
had been agreed to. And instead of monthly
payments being applied to this account they were
applied to the main mortgage loan account. The
Ameriqquest rep told us that they were baffled by
what was going on but had to pay it off in order
to refinance.

So, instead of receiving $7000 we got around $500
and a healthy dose of anger. The rep told us that
we were lucky to have found out now rather than
at the end of that mortgage. He figured that we
would have been presented with news about owing
around $50,000 more to close the loan account. i
figure that sounds like a ripoff.

Eric
Thaxton, Virginia
U.S.A.