I refinanced my home because the company that accepted my home purchase contract included an ARM interest rate without advising me. That mortgage company is not Option One aka American Home Mortgage Services, Inc., however, two yrs into my mortgage contract with the company - which I will not name here - I received several calls from telemarketers who advised me that my mortgage interest rate was about to increase to 23% although at purchase, my interest rate was approx. 6% or lower. I did notice during those first 2 yrs that my monthly mortgage payments was increasing but assumed that was due to my putting my taxes and insurance in escrow with that mortgage company and the taxes as well as insurance premiums increased. Specifically, in order to avoid the interest payments on my mortgage increasing to 23% - which my income definitely could not satisfy - I decided to refinance and OPTION ONE agreed to refinancing my mortgage contract. Nevertheless, OPTION ONE knew that I was in a bind because my credit had ONE BAD mark on it which resulted from my recent divorce settlement. Prior to my divorce I had a excellent credit rating. Further, even since my divorce I've continued to maintain a excellent credit rating.
But OPTION ONE came along into my life like knights in shining armor. As silly as it sounds, at the time I really viewed them like angels even though Option One told me that they had no choice, that if they accept my request for a mortgage refinance, they had to set the mortgage interest rate at 9.5%. It was insinuated that that was one of the laws in calculating a refinance when the mortgagee's credit rating is at a certain (unspecified) percentage rate.
It was with a sense of relief, however, that I refinanced my home with OPTION ONE.
But approximately 2 in-half yrs later - at the age of 70 - my physician advised me that I needed to have major surgery. With that in mind I decided to retire from my full-time employment, effective June 2008. My decision to retire was also based on the fact that I had successfully held full-time employment in various employment situations in New York State and/or in the State of Florida for well over 50 yrs. Since I knew that as of the end of June 2008, I would no longer have enough income to cover my monthly mortgage payments, I immediately contacted OPTION ONE - the holder of my mortgage contract. I was advised that OPTION ONE could not help me; that it was up to me to find a company that could. I did come in contact with a representative of Atlantic Mortgage, Inc prior to my surgery and that representative did everything within her professional ability to get my monthly mortgage payments lowered (refinanced/modified) which included having my home appraised at no cost to me. Nevertheless, OPTION ONE blocked her efforts and we never went to closing.
In June 2008, after my retirement became official, and I contacted my 401k representative and he suggested, that due to my age, I should file an application for a Reverse Mortgage. He arranged for me to take the Reverse mortgage counseling as well as having a second appraisal done on my home, however, I had to pay the $350.00 charge for the appraisal. But by this time, although I still had been making my per month mortgage payment ON TIME each month, OPTION ONE decided to turn my mortgage contract over to American Home Mortgages Services, Inc. (AHMSI) which is A DEBT COLLECTIONS company (and cover for Option One aka AHMSI); and, AHMSI used devious tactics to block BMI from finalizing a Reverse Mortgage on my home which by this time was the only thing I could do to keep my home out of foreclosure, to keep living in my home, and to maintain my favorable credit rating.
I continued to satisfy my mortgage payment each month until Oct 2008, by depleting my 401K savings account, my TIAA-CREF Annunity account, and 10% of my FRS savings account. Sometime during August 2008, however, I had made contact with a representative of another company that negotiates home loan modifications, reverse mortgages, and mortgage short sale contracts; and, in my opinion, this company is doing all that they can do to insure that I am able to avoid foreclosure and also stay in my home. But todate, AHMSI is deliberately maintaining an uncooperative posture - the AHMSI representatives lie, they hang-up the phone when they can't or just don't want to answer a question. They insensitive and downright rude. An AHMSI representative will call just about everyday. The call is make early in the morning and late at night - they seldom call at a reasonable time during the day. Further, I have never been given the opportunity to talk to anyone at AHMSI that said anything that sounded like AHMSI was concerned about my mortgage delimna or that AHMSI would do anything to assist in helping me resolve the problem. AHMSI's website is chuck full of a lot of grandios mortgage serving offerings that are designed to sucker unsuspecting people who are down on their luck and therefore desparate for a helping hand. AHMSI's business tactic are unscrupulous and, in my opinion, unlawful. AHMSI needs to be investigated.
Daytona Beach, Florida