My husband & I refinanced with Ameriquest in the summer of 2004. We were on vacation in northern MI and they actually sent someone up there with the papers for us to sign. We were combining 2 loans and were told that wouldn't be a problem. We were thrilled at the time to have one payment. That's when the fun starts.
Our payments started at about $1326.00 a month, not too big a deal. We knew it was an adjustable & weren't too concerned at the time. We figured we'd get a fixed after a couple years.
In Aug. 2006 we got a shock. We had decided to refinance with another company since we'd heard about the stuff going on with AMC and our rate hade gone from around 6% to over 8%. That was $1617 a month, a $300 increase. That meant I'd have to go back to work & put my kids in childcare. Yet 1 more bill to pay each month. So, we had an appraiser come out to do an appraisal and received a devistating blow. The appraiser told the new company that our house was worth $142,000 and they told us they couldn't refinance us.
Here's the kicker, AMC approved a loan for $170,000 based on their appraiser saying that our property's estimated value was $189,000. This appraiser did the appraisal Aug. 2004, after the papers had been signed. Not to mention she compaired our 12oo sq. ft. ranch style home with houses that are 500 sq. ft. larger, on bigger lots, and 1 of them is a 2 story colonial. The 3 other houses had selling values between $173,000 - $190,000.
We contacted AMC about this and they gave us the runaround. The last letter we received from them is trying to blame this on our previous mortgage companies. AMC says they did us a favor by combining our 2 loans. The letter also stated that our "new adjusted monthly principal & intrest payment of", this is what ticks me off, "$1326 continues to provide you with a monthly savings". Lets face it I'd love to have that payment again but my monthly payment coupon says otherwise.
The attorney general wasn't any help & the lawyer that we consulted didn't want to fight what he deemed an uphill battle. I'm also having the hardest time finding a job since I've been a stay at home mom the past 10 yrs.
Right now we're behind one payment because there were utilities that needed to be payed too. We're going to keep fighting this and AMC isn't going to win!