• Report: #256012

Complaint Review: American Benefit Mortgage

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  • Submitted: Thu, June 21, 2007
  • Updated: Fri, May 14, 2010

  • Reported By:91344 California
American Benefit Mortgage
23181 Verdugo Drive., Suite 103A Laguna Hills, California U.S.A.

American Benefit Mortgage Ripoff Broker stated to me he can get me $16,600 cash out I got $4866.50 lost $25133.50 in equity Laguna Hills California

*Author of original report: Letter to rescind from TransUnion Escrow.

*Author of original report: Nationstar - TransUnion Escrow Letter to rescind

*Author of original report: HUD-1 Refund

*Author of original report: Would you use American Benefit or Southland Title? Dont.

*Author of original report: Update 4/3/2010

*REBUTTAL Individual responds: Mr. Valentino tried to "game the system"

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In March of 2005 I contacted Mr. Larry Leal of American Benefit Mortgage which was referred to me by an associate of mine. I explained to Mr. Leal that I have $30,000 equity in my home and would like to refinance the 2nd mortgage. Mr. Leal stated to me that they do not have a 2nd mortgage program. After explaining to Mr. Leal my situation he asked me several question including if I had a prepayment penalty in which I responded. Mr. Leal did some numbers while I waited and he stated to me that he can get me cash out $12,000 after paying all fees and prepayment penalty.

During the process Mr. Leal sent me another email that he can now get me $16,600 cash out. To make a story short the Notary came to my area and I signed the documents stating I would receive $16,600 cash to me. I received a check in the amount of $7,141.58. I called the title company, Southland Title Corporation, to inquire why. The officer answering the phone was Ms. Gretchen Haider who stated to me that she would check into it. She called back a few minutes later and stated the check was incorrect and that I would receive a corrected check next day.I asked how much it would be and she stated she did not know. The new check was for even less, $4,866.50 not $16,600 as stated on the HUD-1. .

91344, California

This report was posted on Ripoff Report on 06/21/2007 01:51 PM and is a permanent record located here: http://www.ripoffreport.com/r/American-Benefit-Mortgage/Laguna-Hills-California-92653/American-Benefit-Mortgage-Ripoff-Broker-stated-to-me-he-can-get-me-16600-cash-out-I-got-256012. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Author of original report

Letter to rescind from TransUnion Escrow.

AUTHOR: Valentino - (U.S.A.)

Repoffreport seem to restrict document postings.  I am rewirting the documnet received from TransUnion escrow offering an opportunity to rescind the contract becasse of a $50.00 error.  TransUnion has changed ther name to Centex Home Equity.  

                                                CENTEX HOME EQUITY

January 17, 2006

Acct #249228207

Dear Mortgagor:

A recent audit of your loan indicates that your delivery fee was incorrectly disclosed on your HUD-1.  A check i the amount of $50.00 is being refunded to you by the closing agent.  Centex Home Equity Company, LLC is sending you a new Notice of Right to Cancel for your signature.  You have the right to rescind three days from the date of receipt of this document.

Please sign and return the corrected HUD-1 and the Right to Cancel in the enclosed envelope.

IF you have any questions, please do not hesitate to call........... at 972-316-8703.

We aplogise for any inconvenience that this error have caused.



Assistant Vice President

Names have been omitted for privacy concerns.


I never got this option to rescind from LANDAMERICA SOUTHLAND TITLE that made a $12,000.00 error resulting in the loss of my home to forclosure.



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#2 Author of original report

Nationstar - TransUnion Escrow Letter to rescind

AUTHOR: Valentino - (U.S.A.)

Notice the offer to recscind on $50.00 (fifty) only fron TranUnion Title Escrow Solutions of Cal, Inc in oppose to almost $12,000.00 (twelve thousand) error from LandAmerica SouthLand Title.
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#3 Author of original report

HUD-1 Refund

AUTHOR: Valentino - (U.S.A.)

The top 3 pages is the HUD-1 document from Land America Southland Title. On page 3 at the near bottom is the cash back (refund) I was entitled to receive.  When an error occurs in the amount in cash back or refund as with Land america Southland Title in the amount of almost $12,000 I ws to receive an option to rescind the contract.  They failed to do that. This was on the 1st Mortgage. 

I had to do a refinance on the 2nd mortgage financed by Nationstar Mortgage now Centez Equity and TransUnion Escrow Solutions of CA, Inc. who made a $50.00 (fifty dollars) error and forward an option to recinf the contract.  That letter is posted here.

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#4 Author of original report

Would you use American Benefit or Southland Title? Dont.

AUTHOR: Valentino - (U.S.A.)

Additionally when and error is recognized the escrow company is required to offer the borrower the opportunity to recind the contract.  When they told me there was an error I should have been offered the opporunity to recind.  That was not offered to me. error of almost $12,000.00 and no offer to recind?  Do not use LandAmerica Southland Title, 227 N. State College, Anaheim, CA 92806 or American Beneifit agent Larry Leal.

Due to the fact that I did not get the amount stated on the HUD-1. it was necessary that I refinance one again.  Fortunately the property equity had increased that I could make another cash out refinancing with Nationstar Mortgage, Springfield OH 45501.  And guess what they made an error of $50.00 and I received a letter that I can rescind the contract.   


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#5 Author of original report

Update 4/3/2010

AUTHOR: Valentino - (U.S.A.)

Don't be a MORON I am not the broker that I can scam the system.  Your broker Mr. Larry Leal did that and told me to increase my income so the loan would go through.  That is who scam the system.
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#6 REBUTTAL Individual responds

Mr. Valentino tried to "game the system"

AUTHOR: Larry Leal - (United States of America)

Mr. Valentino received my initial Good Faith estimate reflecting approximately $12,000 in cash proceeds. The initial Good Faith Estimate showed payoff of Mr. Valentinos current first and second mortgage and approximations of the prepayment penalties associated with each. It also reflected that Mr. Valentinos current mortgage payments were paid since his credit report did not show him delinquent on either mortgage.


I did not send Mr. Valentino a new Good Faith Estimate later in the transaction. What Mr. Valentino is referring to is an estimated closing statement he received from escrow. The estimate showed over $16,000 in cash proceeds but also stated in BOLD letters that the payoff requests from both of the current loans had not been received. The estimate from escrow did not reflect approximated pre payment penalties. My initial Good Faith Estimate was still accurate as it reflected the pre payment penalties, rates and fees that were the same or lower.


The payoff demands form Mr. Valentinos current first and second mortgages were received after Mr. Valentino signed his loan documents. The payoff demands reflecting the prepayment penalties and delinquent payments were forwarded to Mr. Valentino. He acknowledged them. Escrow questioned him regarding the outstanding mortgage payments, he said that the payments were sent and were in the mail.


Mr. Valentinos new loan funded and a check was sent to Mr. Valentino along with a final closing statement (HUD-1) from escrow. The final statement showed that indeed one of the checks he had made was received by his previous lenders but he still owed additional payments.


Mr. Valentino called escrow complaining that his proceeds check was too small as he had made the back payments. He said the payoff demands from his previous mortgage lenders were incorrect. Escrow called both lenders. Mr. Valentino was part right. One of the payoff statements was wrong. Mr. Valentino had placed a stop-payment on the one check that was received by his previous lender. The payoff demand from that lender was increased and Mr. Valentino received a new check that reflected the larger payoff.

Its unfortunate that Mr. Valentino has used this forum to sully me and Gretchen Haider with his half truths, omissions and lies. He tried to game the system by not making his payments and placing stop-payments on checks he sent. I met my commitment to him by procuring him a new home loan at the rate and costs he agreed to.


Larry Leal

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