I feel like a fool. Yes, I have poor credit going on a while now - (due to layoff, health, -had a large savings, exhausted it before all went bad). During my refinance with Ameriquest, I had a bad feeling, then had actual problems occur—mostly with the inflated fees, new fees never discussed, zero explanations of procedures and the 'urgency' forced by the loan officer YET, didn't listen to myself or all of the blatant signs.
Because of my poor credit, I already knew my options were limited. I started my quest on line by emailing 4 potential lenders. Ameriquest was the only one who responded. I also applied locally to a small agency and was turned down. I work full time, refinancing is a vast, time consuming effort and very difficult to accomplish with a demanding schedule. However, take it from my experience, it probably pays to continue the exhausting, reject-filled search.
I had originally asked if it be possible for a loan of 7.5% or below, fixed, and asked for a list of fees associated with a poor credit loan. I had already paid for a full 3-credit bureau report so I knew my ratings and all. I gave explicit details to each company, including Ameriquest, about my circumstances and needs.
Ameriquest promised (verbally) a loan potentially under 8.5% and fixed. The fees were to be around 7k. I could expect 11k cash.
The loan was nothing like what was promised. It ended up being 8.99 and adjustable. And worse...
They rushed out an appraiser. Was told that would be around $400-500, it ended up $900 on the loan. Was told my points would be around 3-4%, was actually 4.85%. Was NOT told I would be charged for notars, escrow company, or an 'application fee of 360.00, or 'administrative fee' of 239.00 or lenders processing fee of 626.00. When I freaked and asked how all of these fees differ, they never responded. I mean come on, how does a processing fee and admin fee differ??? In fact, the actual 'good faith estimate' did not even arrive until AFTER the notars had come for the final signing! The good faith estimate did not list all of these either.
I didn't know anything about the lawsuit until Sunday (1/22/06). Had I found out just 2 weeks earlier, knowing could have saved me thousands. I am just sick. I signed on 1/4/06.
I have been 'promised' a refund of inflated appraisal and escrow fees. I know, I shouldn't hold my breath, but I really need that $. How could I have been so stupid? I guess desperate people do desperate things. I let a fast talking (really fast talking) loan agent, by phone, in another city bowl me over with #'s. I expressed I was not in a hurry, but next thing ya know, an appraiser was scheduled, then, notars (yes, NOTARS) were sent to the house with the papers 3 days later. Didn't even call for an appointment first! These people knew zero about real estate closings. Told me not to worry about the possible mistakes, and that I could take it up with my loan officer and cancel the loan if I needed it re-written. I SHOULDN'T HAVE SIGN IN THE FIRST PLACE.
Course, when the officer realized I was serious about canceling, he did call back, that is when he assured me I would get a $1200 refund one week after the loan funded. I should have had the whole thing re-written. How could I have been so stupid???
There are more factors of built-in guilt that applied to my inability to cancel, the notars were elderly and from out of town—they looked stressed at the possible idea that I might not sign that nite, the officer acted 'hurt' that I didn't absolutely trust his word. Gees, I shouldn't care about people's feelings when I am putting my home on the line!
I am a fool—I knew this sort of thing happened to others, but not me. I am usually smart, hold a career in a very detailed-oriented line of work, I am -well, like I said, sick. I have not slept since I read the newspaper Sunday. I have placed 3 emails to my loan officer inquiring about my refund and about the suit. Nothing yet. (big suprise)
Please let me know -you, the readers, and officials-in-the-know if you think I should spend what little $ I do have on a lawyer. I dread the thought, I can't be tied up in litigation for years. BUT, I am sooooooo sick of companies taking advantage of people with poor credit. There are so many of us, —the statistics are showing that there are more people with poor or barely average credit than those with good or above average credit. And most with poor credit probably (I hope) have legit reasons for having problem credit.
The whole industry literally 'banks' on people in bad situations. Once in the hole, it is so hard to climb out because EVERYONE charges us MORE, MUCH MORE for everything, —loans of any type, insurance, credit card rates—even if we weren't a 'problem' for that particular card, they can raise rates and fees just because we were late on a different bill entirely... It is ridiculous, if anyone needs a break, it is people with poor credit, not the people with great credit! Please give your advice. Willing to listen to any suggestion at this point. If I don't listen to myself, maybe someone else can plant an intelligent thought.
Sherrie
Spokane, Washington
U.S.A.
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