ASC America's Servicing Company Does the Consumer have any rights?? Des Moines Iowa

Background: Financed a home with a mortgage back in October 2006. Set up bi-weekly automated payments from a seperate bank account open and funded solely for automated mortgage payments with money that would cover over 12 months of payments. No probelms, payments were transferred to the mortgage service company every 2 weeks without a hitch.

July 11, 2007: Phone call from ASC informing me that they have not received a payment since they bought the loan back in early June. Told me I could give them info over the phone which would bring my loan up to date but I suggested that since I had no idea who they were, they send me info in the mail with the balance owed. They told me no to worry because I have 60 days from the time they bought the loan before defualt, fines, negative credit impact, etc.

Unfortunately they had already taken over 40 days leaving me with under 20 days to get the "mess" cleaned up. Asked ASC to fedex info so we could get issue resolved quickly to protect me. I was told "No", we dont overnight. Told them my next payment would be due prior to getting their letter. Sorry, we dont overnight.

July 17, 2007: Finally received detail in the mail about payments that were in arrears. In addition, they were requesting the next 2 payments as well providing a cushion to resolve the situation while keeping loan payments current (everybody loves to pay thousands of dollars weeks ahead of time instead of earning interest on their money). Against my better judgement, I sent ASC 5 payments including the 3 in arrears and 2 additional payments.

July 26, 2007: Called ASC to confirm received payment. When I typed my loan number in their automated system, was notified that my July 20 payment was overdue. When I spoke live to a representative, she explained that they took the monies and applied payment to the 3 in arrears but the amount for the additional 2 payments was sent to principal only. Even though they suggested I make the 2 early payments, they didnt apply them correctly.

The due date of my 4th payment was July 20 which was the same day they got the check for 5 payments (3 in arrears, the July 20 payment, and the August 3 payment) and yet none of the check was applied to that payment. I told the woman (Tasha) that I was extremely frustrated with the service and felt like I was helpless as a consumer as I couldnt switch my mortgage service company. She politely informed me that I could, I just had to refinance with another bank. Closing costs of $5k and interest rates at over 6.5% (I got 6%) to refinance really didnt appeal to me as a good option.

I told Tasha about 5 times that I was leary of setting up an automatic withdrawal with them as I have no confidence they will do it correctly with particular concern that they would attempt to take payment for the August 3rd payment which was already paid. She assured me that she was fixing it and no payment would come out on August 3rd (I must have repeated my concerns at least 3 times within 10 minutes). She pushed me through to Patrick who was going to set up my automated payment but wanted me to hold for a second so she could explain to Pat the situation. Pat came on the phone after about a 2 minute wait and said "ok lets get you set up so you can make that first payment on August 3rd"....was I on candid camera?

July 28, 2007 (saturday): Wife went to get mail and had a notice that we had to get to our post office as there was a certified letter for us. It was a notice of intent to foreclose and stated that my mortgage is now in default. Letter was dated July 23 which was 3 days after they received my payment. Even considering they miss applied my funds, July 20th was my only overdue payment (again, I was really paid in full plus additional payments...not in default at all). Had it lingering over my head all weekend as ASC does not open until 9:00am Monday.

July 30, 2007: Talked to Drew about my certified letter. Obviously I was disgusted...no help. Told me I wasnt in default (is that official?). How about sending me a letter stating such? Went home, there was a letter from ASC as I was thinking "that was fast." Letter was sent informing me that have secured flood insurance for me at $2,289 per year due to the fact that I never sent them proof of flood insurance. This came right out of left field. I have had conversations with 5 different people lasting over 2 hours in total and no one mentioned anything about proof of insurance. I have flood insurance and certainly dont need 2 policies. I am sure the coverage is with Wells Fargo whom I believe is somehow affiliated with ASC.

July 31, 2007: Spoke with Tiani and then Tawanda. Tawanda was extemely rude as I could actually hear laughter in the background as we argued. She said that ASC has no responsibility and/or fault for my problems and it is my responsibility to get them what they need. I asked "why didnt anyone mention your need for proof of flood insurance?" She responded in essence "did you ask anyone if they needed proof of flood insurance?" How would I know to ask? Tiwanda also told me "you cant switch servicing providers sir, you could refinance!" Second time I was told I could refinance...huh.

Lets see, mortgage market is in disarray, mortgage rates are up so ASC probably bought my loan at a discount (ie $0.96 on the dollar). If I refi, they get dollar on the dollar for a loan they spent $0.96 to purchase. What a return in a matter of 2 months. No "servicing" company can be this bad can they? Are they trying to push me toward refi???

This is criminal. Where is the consumer protection? I have spent sleepless nights and hours of aggravating phone conversations related to this issue. My father died of a massive heart attack at 37 which runs in the family. This cant be good. The issue has been getting worse with every passing day despite my conversations and actions. I cant do anything about it except refinance. This is America, where is my choices, where are my rights.

The mortgage lending industry is in shambles right now with foreclosures and defaults. This type of outfit is absolutely horrible for the mortgage system. For those who are having payment problems as it is, to be hit with fraudelent fines/penalties in this housing environment is criminal. What can I do? What can we do? I seriously suspect ASC is trying to get people to refi on loans that they paid a discount on so they can get great returns. Help!!

Can this happen in America
Medford, New Jersey
U.S.A.