I was duped out of my $177,000 American Dream. Same story as most 5Bd 2Ba 3Cr GR. My home newly purchased home was in need of a roof and gutters and windows. I bought the home undermarket so I thought, looking to renovate and resell after a few years. I applied for a $30,000 home loan to take care of the repairs, of which I was assured my home values would incease, while my mortgage amount would be high only for about 6mo to a year.
New loan amt. $231,000 go figure... I was told my new loan amount would be about $530 more per month going from $1900 to $2430. That loan really came in at $2770. I was then told to refinance that loan to get my rate down and since I have so much equity, pay off all my credit cards. The way the loan was presented over the phone my mortgage and lower interest would be lower making my new mortgage amount $2600.00... not so it came in at $2720.00.
The total credit card debt to be paid off added up to about $1800 and the said I would even have $7000 in cash. I would let it ride for another year then sale, or so I thought. I was getting a lower mortgage, money to add to savings and a home that was now worth $285,000 to date with the new renovations. I could still profit and redeem myself, or so I thought again. The new loan amt. came out to $256,000 from $231,000. Wait a minute, what is going on? Where is all of my equity going? With the much higher bills we could no longer afford to stay in our home.
I searched the area values for comparisons so I could sale my home and walk away with something to start over with. That was the plan that became a nightmare that left me homeless. The economy had already turned on the housing market and the mortgage of $256,000 was applied to a home that was worth every bit of $245,000. How can this happen? Was I really that naive? I tried to sell by owner and didn't get many hits couldn't afford a broker.
Our trucking company suffered a devestating blow with fuel causing us to terminate our business authority. Did I mention while this was going on, I was studying for my realtor license. I achieved it and found that there was nothing I could do. The market itself had turn on my first clients. Here I am trying to guide them thought their toughest time while I was going through mine. Nothing closed on time and I found myself trying to keep food on the table and warm water running.
You can only play camp in the darkness so many times before kids really wonder what is going on. I started getting the calls from Amc inquiring about missed payments. Calls escalated as months went by where $2500 is the most we brought for the month, not like the $10,000 that came in with the company in full bloom.
THE STRAW: After 8 months of missed payments the angels of death aka AMC called and said we have a solution for your foreclosure problem. We can refinance your home for the remaining equity, get your loan in good standing for virtually the lowest fee we can offer...because we are trying to help you. At his point I would do anything to keep he sheriff off my door step.
I agree they appraise the house at $290,000 and I sign the loan. I close with a closer at my kitchen table. My mind was at ease finally and I sent in the first payment which was returned saying wrong loan #. By the time I get this back the second payment is mailed and I get that one back too. I call the closer and she checked my papers and told me the number I had was correct. I call AMC who took an entire week to locate and research my file. They call to inform me that I do not have a new loan.
I now owe a lum sum of $27,000 in past due payments and they have already sent notice of foreclosure to the county. OMG!!!!! Not only do I not have that type of money but how do I tell my family. A few weeks later I receive notice of foreclosure. I was then told that the only way to prolong the process is to file bankruptcy. I was finally making enough money to pay off credit cards so the only thing left would be my past mortgage amount to file. I file a 13 then I provide the proof that I make enough money.
Well with only one strong salary, my husbands because as a Realtor I am commission, 13 was denied. Not only was it denied but all of my credit lines were cancelled because of a clause when you open the card states if you file bankruptcy we will cancel your card!!! So at the end of a long agonizing year and a half with AMC I lost my SANITY, my home, and because I didn't want my daughter on the streets I sent her away with family until we could stand on my own two feet under a roof.
I almost lost my marriage, due to my sudden inability to think straight. I was virtully homeless, I packed my belongs in a storage unit, and u-haul one way to Indianapolis, IN from Chicago. I lost all of my clients, my blossoming career, and my ability to trust. I found a nice apartment, the size of my last bedroom, and a job waiting tables, something I haven't done since college.
All because my much lower credit score shows irresponsiblity,which means NO JOB FOR YOU. I found out I was expecting right after moving and the stress of everything caused me to lose him at 5mo. I then found a great career with benfits and first thing I did when I got my new Insurance was seek out a therapist. I have been told that I have been traumatized by money because I cannot physically handle bills and payments without suffering anxiety attacks. My husband now looks at all of the bills and pays them as well because it just makes me sick to my stomach to do it.
SILVER LINING: I believe in GOD and I know that one day I will feel better even though right now I am still hurting and missing a home to call all mine. I have to rebuild, but it will be a slow process because I took a pay cut. However, I will say I don't have the sleeplessness anymore. My daughter will be home after I gain seniority to work a shift where I can be home with her.
Starting from scratch they say! This small apartment, with breath in my lungs and my baby away from me is called scratch. It will do for now, until I can repair the damage that AMC has done. After reading this story you may need an anti depressant, don't get them from friends get them from your own doctor. Been there done that long story too...!
Homeless but Hopeful
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