Foreclosure Fraud – Texas Attorney General Abbott Charges American Home Mortgage Servicing Inc With Violating State Debt Collection Laws

American Home Mortgage Servicing Inc. failed to properly process requests

AUSTIN – Texas Attorney General Greg Abbott today charged Coppell-based American Home Mortgage Servicing Inc. (AHMS) with using illegal debt collection tactics and improperly misleading struggling homeowners.

According to state investigators, AHMS collections agents used aggressive and unlawful tactics to collect payments from Texas homeowners who had difficulty meeting their payment obligations. The defendant also failed to credit homeowners who properly submitted their payments on time.

In other cases, AHMS agents falsely claimed that homeowners did not make payments so the agents could justify profitable late fees or escrow accounts. The defendant also failed to properly credit homeowners after AHMS agents withdrew funds from the homeowners’ checking accounts. Because of the defendant’s unlawful conduct, homeowners defaulted on their loans, leading to foreclosure proceedings.

Additionally, the defendant claimed to have a “Home Retention Team” to assist distressed homeowners. Many customers found that AHMS could not qualify homeowners and that they were of no help to halt the foreclosure process. Some homeowners who actually obtained loan modifications found that their monthly payments increased rather than decreased, which worsened their problem with foreclosure.

Today’s enforcement action charges AHMS with multiple violations of the Texas Debt Collection Act and the Texas Deceptive Trade Practices Act (DTPA). The State is also seeking civil penalties of up to $20,000 per violation of the DTPA.

Source: Texas AG

~

4closureFraud.org

~

State of Texas v American Home Mortgage Servicing, Inc
[scribd id=36636999 key=key-1pgu69v5ocd6fzebt0wi mode=list]

Comments
17 Responses to “Foreclosure Fraud – Texas Attorney General Abbott Charges American Home Mortgage Servicing Inc With Violating State Debt Collection Laws”
  1. Anonymous says:

    Let me preface this story by saying I have always sent my mortgage payments through USPS as certified mail with a return receipt. This saved me from several instances when this company tired to scam me. I suggest anyone else do the same. That postcard you get back is worth it’s weight in gold.

    I had my mortgage through the original American Home Mortgage Inc. That company was created as a Real Estate Investment Trust. Meaning it was created to reduce or eliminate corporate tax for it’s investors. You can read up about REIT on Wikipedia if you like.

    The company filed for Chapter 11 bankruptcy protection in Wilmington Delaware federal court, on August 6, 2007. The week before the filing, the company said that many of its lenders had demanded their money back, and that AHM was also unable to deliver on about US$ 800 million in commitments for housing loans, and had laid off nearly ninety percent of its 7,000 employees

    It was then sold to a company that called itself “American Home Mortgage Servicing”.

    I was never behind on my house payments. But I had a clause in my original contract allowing me a 15 day grace period from the 1st of the month to pay. Sometimes I took a little longer to get my payment in. But it was never a problem with the original company.

    Not true with AMH Servicing. While technically we never were late to them, I got a call the first time I mailed my payment on the 5th of the month. A call from India, of course. Threatening me and saying the payment was late. I faxed them a copy of the certified mail receipt that proved when it was sent and received. They backed off. But the next month I received a call on the 1st of the month again. From the same man in India. I guess he was assigned to my case to verify each month that I had sent my payment. Harassment!

    This time I told him I had a fifteen day grace period. He said that technically I was late if they did not get the payment by the 1st and that the original contract no longer mattered.

    I grilled him more, asking details – though I was furious. I tricked him into telling me things because as I asked he began to get arrogant. He said that the new American Home Mortgage was not even related to the old company. And that they had deliberately picked a similar name to confuse customers. How stupid and arrogant he was to tell me this. But I was glad he was showing his hand.

    Then he told me that technically they were not a mortgage company. The were a debt collection agency. That is why the name has “Servicing” after it now. So I researched that company. There used to be an article on Wikipedia about it but it is gone now.

    Here is an article that explains the situation.
    http://livinglies.wordpress.com/2010/10/29/american-home-mortgage-faces-servicing-lawsuits/

    I sold my home because I did not want to deal with the mortgage industry anymore. I sold it and did not take a loss, fortunately. But that was just as the economy was going belly up. And I am glad I got out.

    So, please be assured that you are dealing with a debt collection agency and that is why they do not act like a mortgage company. At least to the best of my knowledge that is what they really are. They sure act like it, so I have no reason to doubt what was told to me.

  2. r pate says:

    a foreign owned company should not be allowed to enter into home mortgages. they sound like national city bank. call every day even when you are not and have not been late with a payment

  3. patrick ainsworth says:

    I am over 65 and disabled. I was at a 7.25% interest rate. i paid my own taxes and insurance. AHMSI was sent a hardship letter. I told them I thought I qualified for a HAMP modification. I sent in all the paperwork. AHMSI said after many weeks that I didnt qualify for HAMP I did qualify for in house loan modification.AHMSI said that my new interest rate would be 5%,. That my new PI would be substancally lower. After eleven years of paying PI only, AHMSI now required PITI (escrow account,) plus a large balloon note. My payments havent been credited, and the payment AHMSI say I owe has nearly doubled. AHMSI calls me 3 to 5 times a week threating foreclosure.They refused to honor my over 65 and disabled tax deferment. These people have violated many laws and prey off the disabled and the old. I dont want to lose my home. The government needs to put the company out of business and jail the management.

  4. Kanye Franklin says:

    Its about time someone of a higher athority take legal action against this misleading company. I have been forced to be ripped off from this company for close to 10 yrs now with a intrest rate of 10.75%! I have been in the same home for 10 years and I still owe more on my mortgave than my original loan amount. They They have made several promises since Hurricane Ike detroyed my home, but never did good by them. I am still struggling to rebuild sinse that time. FEMA was no helpat all, they denied all my claims stating they couldnt find enough damages. AHMSI/Sterling Insr., finally paid out about $30.000 on over $50,000 damages caused by Ike. During that time AHMSI Charged several late fees when they were holding on to the checks from Sterling Insr., to start on repairs to my home. By choosing to start on repairing with the money I would normally pay them monthly for mortgage in order to provide a suitable roof of living for my family. They continued to report late payments & add late fees when they were capitalizing interst on the money they were holding of mine. This put me in a situation where I regret trying to save this home, because now my credit score has been damaged by them and It looks as if I would never be able to lower this high 10.75% rat, which is rediculious high!

  5. Mary Lou Sanchez says:

    After losing my job to the budget I found myself overwhelm with morgage, utilities and to make things even harder was about eight months my daughter and grandaughter moved back home because they where victims of a home invasion and her fiance was killed. I finally contacted American Home Morgage and ask for some help. They said I could apply for Obamas Making homes affordable program so they sent me paper work to complete and return with addition documantation from me. THIS IS WHEN MY NIGHTMARE BEGINS
    I return everything they requested in July 2010. After a month I contacted them they said I was short a tax document they said they had ask form, let them know they hadn’t ask for it but I would fax it right away and did the next day. I couple of week later I recieved a call from American Morgage requesting same tax document. I told the I had already send it and I would send again and did but it took a two days to fax it to them. I had alot of thinks going on with my life alot of drama since my last contact with Morgage Co. (Sept.2010) In Nov. 2010 someone comes to my home and tells me my home was being put up for Auction. I could believe it and contacted American Home Morgage Co and spoke to a Veronica who said she had to talk to her supervisor but thought I could start the process again. she put me on hold and when she return she said per her supervisor approved and that I was to resend documents and that I was to send $100.00 by 6th of month for
    3 months so Dec 6 I sent first $100. and shortly after fax document. At the end of Dec I contacted morgage again to let them know I was about to send 2nd $100. and the person said ok but I hadn’t sent an application with documents I had fax So he was sending me one to complete and fax it back with the previous documents so I did he also said that my home auction was on hold until April 2011. First part of Jan 2011 I recieved a letter my money was being return. So I call and they said they never request that low amount of money. I asured him sending money was there idea I ask him if that was the reason I hadn’t recieve application for Making Homes Affordable he said no that they would still accept it and would send me another also check to make sure no action was going to take place until April 2011. I finally recieved application and 3 Days later a person comes to tell my home was being sold at auction. This time when I call they tell me there records show the last time they talk to me was Aug 2010 nothing else I tell I have proof I’ve been corresponding to them and said it was to late I was told a week ago first part of march I had to be out by end of the month. I told the where was I to go I’m a 56 year old women about to be homeless.

  6. Julia says:

    Adrianne, do not accept this modification the per legal advice. Counter offer back before you make a payment on this mod. Tell them u have reconsidered and the terms are unacceptable u cannot afford to pay for a home loan over the value of the home ! the same happened to me keep fighting !!!

    • Les says:

      Do you think the business will be closed after the hearing? My mortgage is with this company also and I am unemployed, but my payments are still current. I just want be with a real “mortgage” company. Finances are tight, but I’m doing what I can.

      • Michelle says:

        They have done much the same to us, only we got the mod and it raised our payments.They back dated the contracts and when i asked them about the date Robyn Dobbs assured me that the date would have no effect on us. Now the company says we are delinquent to the back date and Miss Dobbs will not speak to us. So we are back at square one only worse.

  7. Angela says:

    Please continue to update what is going on with American Home Mortgage Servicing Inc. a.k.a. Option One. I have been involved in the ‘phone-clog’ that leads you to nowhere. I was able to find out that they are based in CA, FL, TX, and India. Even that wasn’t easy, they refuse to give you phone numbers, last names, or even extentions to speak to the same person twice. I have filed complaints with the Attorney Generals U.S., MA, CA, FL, and TX. The mortgage holder has became disabled and we feel that it actually accelerated the foreclosure process. On 10/1/10 the FHFA Director outlined a Four Point Process for Mortgage companies to identify their deficiencies… please look it up… I haven’t been able to find how it can be enforced. There is a web page on CNN ‘Attorney Fights Back…’ take a look. Keep Helping Eachother! Angela

  8. Adrianne George says:

    Also…I have really researched this and have seen that my story is soooo much like so many others.Seems all mortgage companies are using the same play book!

  9. Adrianne George says:

    We have an American Home Mortgage.We have been through a nightmare that I am afraid may only get worse from here.
    My husband lost his job July 2009.He was on unemployment for 9 months.We got behind on our mortgage.Unemployment was less than half what he had been making at his job!They began sending any money I could send them back to me and said they were not accepting any more payments unless we had the full past due amount.Which by then was double what it should have been because they had turned it over to the foreclosure dept…which added on legal fees almost equal to the past due amount.There was no way to simply pay it to catch it up.
    We tried for 11 months to get the Making Homes Affordable Modification.We would fax them the requested documents.We would wait 7-10 days like they said and call back to check.They would tell us they had them and to give them 2 weeks to review it.We would call back in the 2 weeks,and they would tell us they didn’t have the documents we just sent them.Or they would say there were some new ones they needed.We did this no less than once a month for 11 months.We must have sent the same things to them at least 8 times each at different times.Our case worker kept changing.Or we would call and give the name of the person we had just talked to only to be told there was no one there by that name or extension.
    Keep in mind that they are not accepting any money from us at this point.So our situation is only getting farther and farther out of hand.And yet since my husband was on unemployment,it was not possible to be socking back large sums of money either during this time of not being allowed to make our payments.
    My husband got a job finally.Lo and Behold…magically once they received the news of his new employment status…they then had all the papers they needed to process it except proof of his new income.We sent the pay stubs.Guess what!?! Now that he was employed we no longer qualified for the Making Homes Affordable Plan offered by the Govt.
    I truly believe they drug us along through that period of time that he was on unemployment knowing they did not intend to work with us.But it is my understanding that as part of participating in the MHA Plan with the Govt ,they have to show where they tried to work with the homeowner.Then if it doesn’t work out they can sell the house at auction for less than is owed on it and still receive Govt $ towards the loss.So then the Govt help goes to them,instead of to the owner.
    It was amazing how within 30 days of telling them my husband was employed again they all of a sudden had the answers for us….which as I said was that we no longer qualified for the Making Homes Affordable Plan due to his going back to work.
    So then they offered us an In House Modification ,which means one they offer that doesn’t involve the Govt. We decided to try, thinking at that point it was that or move.They had an agreement sent to us within 2 months maybe,if that.It was basically this……Our payments were going to be roughly $75 a month higher than before all this started,we were to resume them within a month of this offer from them,and they had tacked on $30,000 to the amount owed on the house.We now owe more than we paid for it in the beginning.The only thing that was better was the interest rate.But now we have payments a bit higher than before.And my husband still makes less at this job than at the one he got laid off from last year.Though it is more than unemployment.
    I feel like we are back to where we started.And I have this awful feeling that we aren’t going to be able to make it.I mean the whole point of a modification is to get more affordable payments.Ours are higher than they were and we are making less money!
    I am researching to see if there is any help for people suffering from unfair/fraudulent business practices with mortgage companies.But since we already signed their agreement,I don’t know if there is anything to do but pay it.But they only gave us about 2 weeks to even think about it before we were to have the agreement signed and returned.And anyone going through stuff like this knows there is not much discovery you can do in 2 weeks.So in fear of losing our home…we signed.The 1st payment is coming up due in a couple weeks!
    So if anyone knows of any help against such practices from mortgage companies,specifically American Home Mortgage…let me know!
    Adrianne

    • Evonne says:

      I got goose bumps reading your blog. It is the exact same story, different dates for me and my family. My husband and I can only shake our heads at the fact they are able to get away with this. There has to be an attorney somewhere that can help with all of this. Please let me know if you find out anything and I will do the same, we are in this together
      Evonne
      WA state

      • Philicia says:

        I have my home loan with BAC home Loans/Bank of America/Countrywide,my story is exactly the same as yours. we must stick together and keep fighting these Crooks…

      • Linda Star says:

        This is so HORRIBLE also happened to my veteran termanally ill husband and I filed a hardship because of his illness. Needed help credit still good so applied for Keep Your Home California granted $76,000.00 Loan company refused loan I have court documents stamped satisfied from Keep Your Home meaning loan paid but loan company carried the $76,000.00 in suspense/unapplied on statement for several months THAT IS FRAUD We’are in our 70’s forced out of our home Had to drive termanally ill veteran husband in a u haul tuck from California to Texas to live with daughter We were in our home for 7 years had equity NEED LAWYER Loan company put us in a modification and said they would apply the $76,000.00 to our loan but I have court stamped documents Loan company DID NOT HAVE THOSE FUNDS TO APPLY FRAUD FRAUD. OH AND BY THE WAY PLAINTIFF ON THE COURT EVICTION IS. THE SECRETARY OF VETERANS AFFAIRS ‍♀️

  10. Laurie says:

    Oh my … I have been dealing with American Home mortgage servicing on missing paymenst for a while now… This is just crazy and I am scred to death about loosing my home,, I have made the payments for August and September yet they are telling me that they ahve been returned account not found. I have all the documentation that the money was drafted from my bank account.. I have faxed them my statements as well as detailed information from the Automated Clearing-House Federal Reserve proving my payments were made. After 4 weeks of dealing with 20 different people they are now telling me I had a payment returned account not found in Janruary of 10 so I faxed them the proff for that as well. Now they are telling me they show another payment returned in 08 acount not found.. I have never been notified about any missing paymenst I have proof they have all been drafted from my bank account and my statement never refecletd and past due payments..OMG!! I have just recived forclosure information and I just do not know what to do.. I do not have the money to make these paymest They have the money somewhere and have not applied it to my account… I don’t have money for a lawyer I do not know what to do…. If you have any suggestions please let me know…

    Desperate in TEXAS!!!!!

  11. mbutler says:

    My ex-husband was awarded the house in the divorce, he was in a serious accident 2 years later and couldn’t keep the house so I jumped in to save my credit, when I contacted AHMS to see if I could qualify for a loan modification they said my ex would have to submit his financials – well, he wouldn’t do that as he ended up in bankruptcy. Things got worse, they stopped sending me statements and shut me off from the online service so I would have to call in to make payments, it was a nightmare to get through to anyone who knew what was going on, some times I would call and they would say, is this for this month or last month and I had made the payment the month before on time but they would suspend it due to my ex’s bankruptcy. Now, I’m in trouble, my finances have dwindled and I don’t have the money to keep making payments that are over $3000 a month, I’ve put thousands into the place in hopes of selling it and the market is flat. I’ve hired an attorney to see if I have any options but they’re not talking to him either. Sad situation.

  12. james jimenez says:

    Serves them right to get fined over 33 million. I had a negative amneration loan and because it took so long for the modification to go through, what I owed went up and up. When I finally did get the modification they had not lowered one red cent. I thought that it was supposed to have been reduced to the amount you first got the loan? Now I have wanted to get my ex mother in law’s name off the loan thru a loan assumption and they said that my debt ratio was not 50 % of what we owed. If they had done the loan modification before I would not of owed that much. Now I can’t change the name, too expensive to refinance, virtually impossible these days and now they call when the mortgage payment is late one day, my money is good for them then but not for a loan asssumption in which we have never missed a payment in 5 years……

Leave a Reply

Your email address will not be published. Required fields are marked *