My story is basically the same as everyone else's.
I have recently come to the conclusion that I have been the victim of predatory lending. I have hence done much research on Ameriquest Mortgage, and they have a terrible reputation. I wish I had known this beforehand. I contacted them after receiving a mailer to see about doing a cash-out refi on my home. I had a low interest, 30yr. Assumable 5.75% FHA loan, but I was interested in converting it to a conventional loan and also do some home improvements. My credit scores at the time were EQ: 625 EX: 579 TU: 564
Ameriquest said that because of my low scores, I could not qualify for a prime rate. I was attempting to get $20,000 cash out for home improvements. They were valuing my home at $191,000, although actual market value was closer to $250,000. Their first offer for a 30yr. (first 2 yrs. Fixed, then converts to an adjustable loan) was well over 8%, and was charging around 6 points. They couldn't give me the whole $20,000, and they wanted me to pay off my new auto loan. They also wanted me to pay off a judgment that was showing up on my CR. There was also a pre-payment penalty the first 3 yrs. I agreed at first, but then backed out a few days later. They were quite annoyed about it, and tried to talk me into keeping their offer, claiming it was a "credit building" program and would be the best way to raise my credit scores. They were wanting to close in less than a week, and something just didn't seem right about it.
Their second offer was announced in a phone call from Diosa claiming that they could give me the whole $20,000 cash out I was asking for, and wouldn't require paying off the judgment. The interest rate was reduced to 7.7%, but the other elements remained (3 yr. Prepayment penalty, first 2 yrs. Fixed then switching to adjustable, must pay off my automobile loan that was under a year old). I asked for a GFE, and she said she would produce one. Again, they pushed for a quick closing, less than a week. I asked for the GFE a couple days later, and still they would not produce one. I was told it would be available at closing of escrow. This confused me, and scared me, as I had no idea how much this offer of credit was going to cost me.
At closing, the GFE was finally revealed. I know now why they waited. My payoff on my mortgage was only $113,820, my auto loan was $14,670, and cash to me was $20,000. This left $11,680 in misc. Fees!!! Of this amount, $8,013 went directly to Ameriquest Mortgage!!! Their loan discount was 3.986%, appraisal fee was $325 and I sent a written statement asking for a copy of the appraisal and they never sent it. Other fees were $70 for tax related service fee, $9 flood search, $626 lenders processing fee, $239 admin fee, and $360 application fee!!! This does not include the title fees. Outrageous!
I do believe that they purposely omitted the GFE in order to intimidate me, since at the time of escrow, it's difficult to back out. The GFE wasn't even explained in any detail, and each page of the contract was rushed through. Although I had a week to back out, I had already invested a lot of time and effort (copies, faxes, taking time off from work, etc.) and felt that what the mortgage company was telling me about my credit wasn't going to get me any more favorable terms.
I do not know what is available to me as an outcome, since I started making payments on this new account in July. My monthly mortgage payment has gone from under $1,000 a month (very manageable, with my old FHA mortgage) to over $1,300 a month (very unmanageable). I am afraid of not being able to make my mortgage payment in the near future, and of suffering credit damage because of it. Thank goodness I found this site. I have contacted a consumer protection attorney about this matter, and will attempt to sue if he thinks we can win. Either way, I'm going to have to suck up the prepayment penalty and get out from under this loan. Just worried about my seemingly high back end debt ratio. (was told by Ameriquest it was 45% or so)
I haven't even scrutinized my paperwork that much, so not sure what else Ameriquest masked at closing, but that's what the attorney is for too. Why a company would screw it's customers that could very well become returning customers or referrals is beyond me. What a way to shoot yourself in the foot.
Tracy
Palm Bay, Florida
U.S.A.
0 comments