Complain about a product or service

American Home Mortgage

Eleanor of Brunswick, MD January 24, 2008
In June 2006, I entered into an Option ARM loan agreement with HomeCourt Mortgage Group (HMG). After settlement, HMG sold my loan to INDYMAC and OCWEN and what I expected did not happen. I immediately decided to refinance again. So when I was contacted by Premier Financial for refinancing, I specifically informed Premier Financial that I wanted to get out of the Option ARM Loan. This was in September, 2006. The Loan Officer (Ryan Van Sciver) offered me a 30/5 at 2.525%. After a month, I received an adjusted ARM letter from AHM that my loan has been adjusted to 9.55%. In fact, this letter is sent to me every month since December 2006. I was never told that it was going to be another Option ARM loan. I was lied to and duped into an Option ARM even though I had indicated to the Loan Officer in the beginning that I did not want another Option ARM Loan.

I am retired (since 2000) and in order not to lose my home, I have spent over half of my savings to make payments of the mortgage, which is now over 5,000 a month. I have been unable to pay my other bills like I always did on time. I am presently working at Macy's. There are times when I am unable to drive to work because worrying about the mortgage causes me to have driving phobia.

Jeremy of Lehigh Acres, FL January 3, 2008
I went to AHM to refinance my mortgage. I explained I wanted a mortgage that would cover all my interest, escrows, and possibly some of the principle. They told me I could get into a 3 year ARM and be able to do all this with a minimal payment of 822 a month to start.

When my first statement came to me, it had 4 different payment amounts on it (an optional arm).  My payment went up over 400 per month.  I called them and they said it was what I signed up for. So I asked them if the minimal payment at least covered all my interest and escrow and they told me NO.

I have exhausted my savings. I could not make my December payment and now I fear that I'm going to lose my home.

Karen of New Castle, DE October 19, 2007
From the start, this mortgage was a problem. Even when I paid the amount due on the monthly statements, I still got calls saying I was delinquent because they had raised the interest rate and the payment amount after printing the statement.  Not only did the rate keep going up, but I kept accumulating late fees on top of it.

I had no luck with customer service.  They were extremely uncooperative. I ended up paying all the extra fees just to avoid more. Then, it just got worse. I realized that I had taken an adjustable rate mortgage. The rate on my 30-year variable went from 4.5% to 8.9% over a period of only a few months. Oddly, the rate just keeps going up even when actual rates in the market go down.

When questioned, they just keep saying that I signed for this mortgage and that is that. The variable is based on an index supposedly tied to LIBOR plus a margin. When I question how they calculate the index, they are unwilling to discuss it at all. The index, is supposed to be based on LIBOR, but even when LIBOR goes down, my index goes up.

My home is currently in foreclosure, despite the over 20,000 I have sent to try and catch up since May. I simply can't keep up with the pace of rising rates and fees.

Dawn of Phoenix, AZ August 31, 2006

During our first mortgage with AHM, on May 4th on the way to sign the loan docs, they called to say they would need an additional 4500 to proceed with the loan. This was on top of the 2000 we had to pay the week before to the seller in order to hold the house because AHM didn't have the closing papers ready. The good faith estimates we received ranged from a 6.5-7.5% interest rate. When AHM called to say they needed the 4500 to go ahead with the loan, they also said the interest rate was a 10.25%.

Michael D told us he would get the loan re-financed before we even had to make the first payment due July 1st and not to worry. It is now August 31st, and we are still waiting. Michael D has lied to us for the past 4 months about getting approvals. We constantly hear, The top guy's got it today, we'll know first thing in the morning. So I call first thing in the morning, and get no answers or even a return phone call. Michael D told us this re-finance would not be a problem, it was just a matter of time. There was a new excuse every week as to why the re-finance wasn't happening. Michael D is always un-reachable after he's promised us an answer.

Ernestine of Chicago, IL June 3, 2006
My husband and I have been trying to close on our home for over a month now and because of the runaround we keep - and are still - getting from the mortgage lender, we STILL have not closed on our townhouse and the seller has since lost the home they were trying to purchase out of state, including their earnest money, appraisal and inspection money. Now, when we do close, which is suppose to be next week, but we've heard that line before, the sellers will have to rent our property from us until they find another home to purchase. I can't even imagine what kind of plane tickets they may have purchased and had to cancel over and over again. We've had nearly 5 extensions!

They started off telling us we were with a lender that is based overseas and that was the reason for all the delays. Now its been switched with them, but we still get the same line: we just need one more thing and we'll have the clear to close tomorrow. Luckily I have a smart attorney that isn't requesting a close date until we get the clear to close. And just like clockwork, at the 11th hour when we're told we were suppose to have the clear to close, we get told they need sometrhing else before they get the clear.

Javier of Pembroke Pines, FL March 13, 2006
I obtained a mortgage in June 2005 and have paid principal and interest every month, plus an additional amount against principal.

All statements received have shown no reduction in principal and even an increase in principal.  After several calls and one letter I was finally connected to a person, who promised to send me a breakdown of all payments and its application to principal. I finally received a letter showing this breakdown which appeared correct and reduced principal with every payment from 384,000 to 380,000. However, the next two statements go back to 381,460 principal.

I sent another letter with my last payment expressing my complete frustration and my intention to pursue Florida's consumer protection.

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