In American Home Mortage Servicing, Inc. Contacted us to say they would be handling our mortgage payments for Option One.
1) In AHMSI Retention Dept contacted us by mail informing us that we needed to modify our loan so that it did not adjust up in 2009.
2) We filled out all of the paperwork and faxed it to them. A negotiator contacted us by telephone and told us he could lower our interest rate, lower our monthly principle by $30 a month, take ten years off our loan, making it a fixed 30-year loan. But, he could not reduce our mortgage amount per month. We really needed him to reduce the amount per month instead of taking ten years off the end of the loan, but he said he couldn't do anything else for us and we could sell if we wanted to. We knew we couldn't sell in the present market and would have to foreclose. We felt we had no other choice and were forced to accept.
3) The negotiator sent us the paperwork to look over and we noticed that the principle had gone up $6000. Still, my husband thought we had no other choice. So, AHMSI legally did what the stimulus act allowed them to do for us by reducing our interest and principle per month, but they made $6000 right in the beginning. That's not counting the $500 that we had to wire the negotiator to recieve the paperwork.
4) After we signed and sent back the paperwork, our next month mortgage statement stated that we owed an extra $236 late charges. I called the negotiator to ask "why" when he told us we had no late charges. He said he was not allowed to tell us about the extra fees for the remodification until all was finalized. He said we could make payments. We paid it in full, afraid that if we didn't, we would have more surpize fees.
5) We were hoping that maybe our mortgage would be back to the regular rate the next month, but NO. The next statement was that of January stating that our Escrow had gone up and we had to make up for $40 on top of the new larger amount due to higher escrow fees. So, now we know that they didn't do us any favors. They made more than $6000 off of us through the stimulus act when we are in danger of losing our home, and we are now having to pay more per month than ever before. I want to know how they say they took ten years off of our home loan when the appraised home value was decreased by almost half in two years because of the market. I just want to warn everyone out there.
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