When my husband and I went to Ameriquest Mortgage we were told that we could get a loan even though we had declared bankruptcy five years previously. Our interest would be 9.8% at first, but it was a variable and the going interest rate was 5% or less. My husband and I decided that we could suck up a larger payment for six months. We requested that our new loan have the same set up as our previous loan which would include an automatic escrow for our property taxes.
The Ameriquest spokesperson came in with files and papers in a stack of about one foot. As we signed the papers we were assured that we would have five days to review the papers and cancel the agreement within that time frame. Our meeting was on a Thursday, this gave us until Monday to respond or the loan agreement would be final.
I am diabetic and on Saturday I was put into the hospital with ketoacidosis. This made it hard for my husband and I to do much insight into the document. On Monday I put a call into the loan office to put a stop on the loan, but I didn't leave that message on the machine, I just asked for our loan officer to call me back. I received a return call on Tuesday.
I explained that we wanted to cancel the loan until we could research it more and was told that cancelling was no longer an option since our five days had passed. I spoke with her supervisor and was told that the manager was on vacation, but once they returned the situation would be researched and they would get back with me.
A few weeks passed and I was contacted to tell me again that too much time has gone by and the loan could not be reversed. However, the employee responsible for not returning my call had been let go. I then went up the chain of command until I spoke with a President in the California office and was told that they would speak with the local office. I was in contact with both offices during this time. One of the times that I contacted the local office, the phone was answered by the loan officer who had handled our loan and had apparently never been "let go". They still would not reverse the loan.
Six months later our payment did not change and upon calling the company we were informed that although our loan had a variable interest rate, it could never go below the 9.8% rate. It was meanwhile becoming harder and harder to meet that payment. We were running behind in other bills as a result.
At the end of the year we received a property tax bill for $2000. Again I contacted the company to inquire as to what had happened to our escrow payments. I was told that there wasn't an escrow on this loan.
End of the story, after two years of unsuccessfully sell the home with enough of a profit to break even, we were forced to declare bankruptcy again in order to get out from under the house.
Please do research on the companies you use and although it is hard not to sign on the dotted line when you seem to be getting what you need, please take the time to allow legal advice.