Class Action Suit filed against Ameri...

Class Action Suit filed against American Home Mortgage

There are 348 comments on the Broker Watchdog story from Aug 1, 2007, titled Class Action Suit filed against American Home Mortgage. In it, Broker Watchdog reports that:

Lerach Coughlin Stoia Geller Rudman & Robbins LLP today announced that a class action lawsuit has been commenced in the United States District Court for the Eastern District of New York on behalf of purchasers ... via Broker Watchdog

Join the discussion below, or Read more at Broker Watchdog.

tbush

Austin, TX

#83 Feb 21, 2010
AHMI is also screwing around with us on our ESCROW. We got our year end statement what they paid for taxes and what they paid for our Year end insurance and then 2 months later we are showing on our statement that they paid another premium for our insurance? Double paying our Insurance company. Now we will not see that refund.... I'm thinking.

Seriously thinking this company is on a mission to rip off the consumer!!!!
Munich wrote:
My wife and I are also in a crisis with AHMSI. Created a lot of unnecessary anxiety for everyone here. These people are ruthless!
In 08' we fell behind on our mortgage and property taxes, and entered into a monthly agreement with the City for the property taxes. Faced with foreclosure we consulted with a Credit Counselor and averted foreclosure.
We then applied and were approved for an Emergency Mortgage Assistance (HEMAP) loan, which in July of 2009 brought both our mortgage and the property taxes on our home current.
In August 2009 we received an Escrow Shortage Statement from AHMSI for over $5,000. We thought this was a mistake and later found out that nine days after our mortgage and property taxes were brought current through our HEMAP loan, AHMSI sent the city $5,000 for our property taxes that had already been paid, and the $5,000 was posting as an overpayment.
AHMSI is now blatantly attempting to escrow this overpayment into our monthly payments, which we cannot afford. AHMSI knew what the HEMAP loan represented. It is like kicking someone when they are down. AHMSI has since sent us another foreclosure notice demanding we pay them the overpayment money, plus additional interest and penalties. Once again we have to consult with the Credit Counselor to avoid foreclosure. What AHMSI is doing is just plain WRONG. They're wreaking havoc on a lot of people. There's no need for it either!
We have sinced filed a complaint with BBB of Texas and also with the office of the Attorney General in both PA. and TX. contacted our State Senators office, and the Depatment of Banking in PA.
Ohio Attorney General Mark Cordray has also filed a complaint against AHMSI.
AHMSI creates the problem and them attempts to reap the rewards. No one is stopping them, why? It's extortion! They need to be stopped. Everyone needs to band together and take the necessary action. It has ta STOP! for everyone.
Sincerely,
Munich
Philadelphia, PA
Santa Cruz Nana

Oakland, CA

#84 Feb 22, 2010
I wanted to sue AMHS after it was discovered that my loan docs weren't complete. They didn't care. Further contact with attorneys resulted in none wanting to take on this case without us assuming court costs - reasonable, if one has money!! However, most of us are losing our homes for lack of additional funds!!

An AP story last week (2/10/10) showed AHMS as the second worst lender in terms of loan mods..no kidding. Please,please, please, if their is an attorney(s) who will put together a class action, I want in! We already know from news reports over the last couple of years, that AHMS can't even identify who our loans belong to. Neither can they "show us the note", for the same reasons. They have no idea who's $ belongs where, and they are going to great lengths to have us not know this important fact!
Frustrated in WPB FL

Fort Lauderdale, FL

#85 Feb 28, 2010
I have been given the run around for 8 months about a remodification. Saxon took 30 days. AHMSI has had all paper work for over 8 months. Sent over five times because they said they didn't get it. I keep getting " the file is in review" "the invester is out of the county" there is alway another reason it is not completed. At this point I want to just stop paying altogether. Since this is a second mortgagte what's the worst that could happen?
DAVID C BREIDENBACH

Arlington, VA

#86 Mar 1, 2010
it doesnt matter if it is a 2nd mortgage unless there is a quirk in fla law-----must see a local atty before taking any steps--------they wont usually talk mod if not in foreclosure already---------the mods are interest reduction only for 3 years or so----then its back at you -------you become part of the overhanging inventory waiting to hit fopreclosure after next presidential election--got the picture---there is no hamp--just a cynical political vote-getting thing---check out whether it was a predatory loan in the 1st place and whether they have violated fair debt collection practices act and local consumer protection laws---see local free counsel and support groups there is one pretty good group in fla
DAVID C BREIDENBACH

Arlington, VA

#87 Mar 1, 2010
further vis 2nd mortgage--in most jurisdictions they can simply sue on the note----------they do not need to foreclose--just treat it as credit card type debt--go after your pay--your bank acct etc -----they can force the sale of your home --your car------essentially drive you to bankruptcy

people often forget that foreclosure is merely a way to enforce the note in addition to many other ways to collect on the note-----it is the note that must be cancelkled-----thats why its important to get the note or a statement by the trust named "custodian" of the "mortgage file" that your note was in fact included in the trust pool and that the custodian has lost the note and will treat it as cancelled AND INDEMNIFY YOU FOR ALL COSTS IF ANOTHER CLAIMANT COMES ALONG LATER IN EVENT CUSTODIAN MAKES MISTAKE in its statement
DAVID C BREIDENBACH

Arlington, VA

#88 Mar 1, 2010
Based on my 30 years' experience with investment bankers and adding in recent disclosures re Greece re Goldman Sachs and AIG,

In my estimation the following probably occurred. Investment bankers [IB] conducted seminars for groups of start up mortgage bankers. At these meetings IB displayed outlines of the documentation needed to originate mortgage notes with features that would enable the originators to market the derivatives at a premium to the amounts paid out to homeowner mortgagors. The premium was wacked up between the underwriters including IB and the originators--including the individual brokers. Basically IB created a "business plan" that it handed out and then profited as the mortgage bankers [using the term banker very loosely] originated promissory notes and securitized them. Central to this business plan were the following features: internal house appraisals using historical data inflated by arbitrary inflation factors unrelated to local markets, no doc loan origination which also facilitated creation of fraudulent mortgages by local mortgage brokers; and last but far from least were negative amortization ARMs with illusory teaser rates to entice people to refinance out of safe mortgages; The originators and investment bankrs/underwriters booke the derivatives at the market value assuming the teaser rates were not illusory [ie at the amount of the homeowner principal borrowed]--then marked up the value as the notes' interest rates reset from 1% to 5%, thereby allowing the holder to book immediate large book profits. The owners at the time of the markup are th investment bankers that acted as underwriters or related temporary investors-speculators suchas hedge funds. The bankers--speculators then obtained default insurance and/or swaps from AIG,MBIA etc on the derivatives outside of the SEC disclosures associated with the initial securitization process that we see on file with SEC. The speculators resold the derivatives after the write up to pensions etc and insurance companies, etc etc. at the then inflated prices, using the post-securitization insurance/swaps as credit support to justify the step up in pricing. Then IB entered into option agreements and swaps in respect of the insurers that they deluded into issung policies on derivatives backed by the mortgages that IB knew were defective --even uncollectible due to origination fraud [ie illusory teaser rates]. Then IB downgrades the stocks and initiates rumors so as to induce panic in the market place to cause the various devaluations that trigger their profitable bear bets.

In effect the IB setup a number of dominoes that were precariously arranged--then knocked them down after betting they would fall.

The Greek debt scenario appears to follow this pattern and is capturing more attention than what was done in respect of MBS.
Frank

Arlington, TX

#89 Mar 7, 2010
We are currently taking these and the party above them apart it Federal courts.

Check ABOVE AHMSI, and see if there is another bank, in our case it is Deutsche Bank Trust. Check your local title records and see if AHMSI or (bank) is listed as your mortgage holder ( assignee).

Is this document legal? Or was it drafted up by someone in another state, under penalty or perjurie, etc. These FICTIONAL assisgnements are more and more the case breaker on these yahoos..
DAVID C BREIDENBACH

Arlington, VA

#90 Mar 7, 2010
Washington Post article Saturady march 6--2010
HOUSE LAWYER
Sometimes losing a home is just the beginning of the pain
By Harvey S. Jacobs
Saturday, March 6, 2010
As if losing one's home in a foreclosure or short sale were not already sufficiently traumatic, many former homeowners are learning that the day they turn in their keys may be only the start of an even more prolonged housing-induced misery.
Among many homeowners, there is a widespread misconception that once the house goes, so goes the debt. This is not true. Even if the homeowner loses his home to a foreclosure sale or short sale or gives his home back to the lender by a deed in lieu of foreclosure, the promissory note signed at the settlement remains a valid and legally binding obligation. That note requires the borrower to pay the lender all principal, interest and fees, regardless of what happens to the home.
Legally, the home is merely the collateral securing the repayment of that note. So even though the homeowner loses possession of his home, he remains obligated to repay the remaining principal balance of the note, all outstanding interest, late charges, and any other fees and costs incurred by the lender. These "other fees and costs" in a foreclosure scenario often amount to many thousands of dollars, including attorneys' fees and costs, the cost of advertising the foreclosure sale, and trustee or auctioneer fees (often equal to 5 percent of the successful bid at the foreclosure auction).
These other fees and costs are recoverable by the lender under the terms of its note, mortgage or deed of trust. Any money received at the foreclosure auction will be deducted from the total amount due the lender. The difference between the total amount owed and the amount recovered at the foreclosure auction is called the deficiency amount.
When all is not forgiven
Many lenders are now aggressively chasing borrowers after a foreclosure, short sale or deed in lieu of foreclosure and obtaining what is called a deficiency judgment against them. These judgments are enforceable by courts in virtually all states. The judgments typically survive for 12 years and can be renewed by the holder for additional 12-year periods, potentially plaguing deficient borrowers long after their former home has become a distant memory.
Deficiency judgments are obtained by lenders in a number of ways. In a short sale, the lenders ask anxious short sellers to sign a letter acknowledging that, in order to agree to the sale terms, the lender expects the borrower to make good on the deficiency amount. Sellers, desperate to sell and move on with their lives, often sign these acknowledgment letters, which can then be easily converted in court to a deficiency judgment. Thus, these short sellers find themselves jumping from the frying pan into the fire.
A homeowner negotiating to deliver the home back to the lender by a deed in lieu of foreclosure should try to negotiate a forgiveness of any deficiency amount based on the fair market value of the home and the amount owed to the lender.
Try to persuade the lender not to report the deed-in-lieu arrangement to the credit reporting bureaus. In a foreclosure scenario, lenders can obtain the deficiency judgment by filing another lawsuit or asking the judge in the foreclosure proceeding to enter a monetary judgment against the homeowner for the deficiency amount.
Harvey S. Jacobs is a real estate lawyer in the Rockville office of Joseph, Greenwald & Laake. He is an active real estate investor, developer, landlord, settlement attorney and lender. This column is not legal advice and should not be acted upon until legal counsel has been consulted.
Scott Osman

Glen Rock, PA

#91 Mar 15, 2010
I filed a 55 page complaint to the Pennsylvania AG against AHMSI and the experience - I orig purchased about six years ago with Option One. This company needs to be stopped!

IF YOU LIVE IN PA CONTACT ME I AM ORGANIZING A CLASS ACTION LAWSUIT and you need to file ASAP with the PA AG so we can get moving! This company has taken almost one billion in Federal TARP funds and are not using it to help homeowners but using it to become bigger and buy out / take over more sub-prime loans email is scotto@scotto.tv
DAVID C BREIDENBACH

United States

#92 Mar 15, 2010
new federal rules out of tarp require servicers to allow short sales------------and bids over time-it may enable a homeowner to match the lowest bid received in the time window --so that a homeowner can buy his own home at the price hed be able to sell to a 3rd party-------need to check this out carefully----------effective april 5 2010
Concerned

Lynchburg, VA

#93 Mar 24, 2010
I have a house that is $300,000 underwater, when taking 1st and 2nd mortgage into account. The lender is offering a mod that will leave me with a negative cash flow of about $1,200 per month and a 5 step restructuring with a 20 year balloon.

I have several questions --

First, I heard that 2nd mortgage holders are accepting 10% of value to settle the debt. Is that true?

Second, are most lenders chasing borrowers for deficiencies after the sale? AHMSI is my lender.

Third, are there legal remedies for borrower trying to kill the lender's attempts to collect on the deficiencies?

Concerned
3/24/10
morsell- NJ

Bayonne, NJ

#94 Apr 10, 2010
Has anyone organized a class action suit against AHMSI?

If so how do i get invloved?
Geezerkatz

United States

#95 Apr 10, 2010
morsell- NJ wrote:
Has anyone organized a class action suit against AHMSI?
If so how do i get invloved?
Check out the gent 3 comments up. He seems to have a class action going in Pa. BUT I do not understand why you want to tie yourself up with a Class Action which will take years to resolve and even if you prevail how will you ever understand how you benefit, value wise. If you can't afford an attorney you have the Constitutional Right to be your own attorney, In Propria Persona. Don't think for a moment you can't prevail...IF you are willing to fight the good fight you can kick the bad guys butt, hard. I know I did and won, huge, and I ain't no rocket scientist. You MUST DO roght now, get a Forensic Home Loan Mortgage Audit completed. I can recommend someone (but you have others to choose from. Lane Houck of < thePatriotsWar.com > is probably the verybest in the business. His work gave me unquestioned proof that AHMSI violated the Federal Truth in Lending Law, numerous times. His work will stand up in court as evidence.. But you must be willing to lay out money for his fee. I think he may still be offering his services for a bit under $1000, but worth many, many times more than that, in my opinion.

Whatever you do I wish you the very best against your adversary. Going Pro Se can be an interesting and exciting process...a real David and Goliath or Man of LaMancha experience that will restore your confidence in yourself AND teach your bad guys a lesson! Good Luck
Geezerkatz

United States

#96 Apr 10, 2010
morsell- NJ wrote:
Has anyone organized a class action suit against AHMSI?
If so how do i get invloved?
Also pay attention to Dave Briedenbachs comments. This man is a Godsend!
breidenbach

Arlington, VA

#97 Apr 11, 2010
people the solution is not necessarily in the courts------there are some loosely connected groups in the country that basically are local support groups----what is needed is to galvanize the thousands of abused individuals into a lobby group --and go march to congress before the financial regulation bill passes---another opportunity exists now to affect the technical amendments bill that always goes behind the large main bill---and before the regulations are issued

many chances yet----the banks now are claiming that there are loopholes in past laws that exempt banks from the fair debt collection practices act--this is awful----so this concept if it is allowed to carry on will allow them to be exempt if the act as trustees on these securitization shams

the trusts are not real---merely off balance sheet gimmicks--please people think of some ways that we can organize into a group of citizens trying to save the 14th amendment right to be free of stste courts "taking property w/o due process of law"-where there are defective "created" court documents, no proof of note, no regulation of collector conduct----double collection---etc---give me your suggestions and i will arrange hill visits for any of you-with talking points etc------when the system fails you-change the system

press is the best way to get the word out-anybody have connections to their local press?
Jay

Englewood, CO

#98 Apr 20, 2010
Laura wrote:
My story is fantastic cant wait to tell but I can tell you what American Home and Option One do to families is horrible, thief's this government should not allow them to bank anymore. Any info on a class action I would love to be in
I think that I may be in a similar situation to you? Current on mortgage, right?

I would greatly appreciatte it if you could email me with any tips.
jason at myveryownwebsite dot com

I am meeting with an attorney tomorrow and will probably retain his services.
sam1

United States

#99 Apr 20, 2010
I live in Tn This company is a rip off co that needs to shut down now they are offer people modifications w/balloon payment this is still predatory lending and should be stopped they need to be stopped and NOW!!!
Lisa Ginesi Haddon Twp NJ

Haddon Heights, NJ

#100 Apr 22, 2010
I would also like to be included in a Class Action Lawsuit against this damned company. My husband and I lost our house a few days ago in court after fighting with this company to TRY to get a modification. We were lied to, were told to send thousands of dollars and would send in certified funds and they would send the money back. This had happened several times, never knowing at which time they had filed for Bankruptcy. So her we are with 4 children to keep a roof over and to keep food on the table with a Sherrifs sale staring at us in the face in 4 days. I dont know how this judge or these other bastards sleep at night because we sure as hell dont. They all need to see how REAL people live. I pity their children. They need to KNOW reality.
Scott Osman

Shrewsbury, PA

#101 Apr 25, 2010
Add me in on any class action... this AHMSI behavior and MO is absolutely criminal. scotto@scotto.tv

I have filed a 55 page complaint with the PA state AG. The agent told me point blank he is swamped with over 300 cases a month and they do not have the resources to investigate. He never even sent the 55 page complaint to AHMSI. I sent it certified as an additional copy.

recently, the attorney for AHMSI admitted to me in a letter to the AG that they made mistakes, but no mention of WHEN i'll get my money back.

I quote " Mr. Osman also states in his complaint letter that a modification fee of $500 was assesed withoiut his authorization for the modification completed effective for the August 1st, 2008 payment. After a thourough review of the payment history and the modification documents enclosed, we have verified that a $500 modification fee was assessed to the borrower's account"
written by Tiffany Price but signed by Jessica Baxter AVP Legal Correspondence AHMSI. I called Ms. Price and she confirmed she is an attorney at AHMSI and has athority there.

SO WHERES MY MONEY WITH INTEREST?!
oh and by the way, my interest rate is 18% and goes up without any furthur notice to 24%
Diana

Greenwood, IN

#102 Apr 27, 2010
tbush wrote:
AHMI is also screwing around with us on our ESCROW. We got our year end statement what they paid for taxes and what they paid for our Year end insurance and then 2 months later we are showing on our statement that they paid another premium for our insurance? Double paying our Insurance company. Now we will not see that refund.... I'm thinking.
Seriously thinking this company is on a mission to rip off the consumer!!!!
<quoted text>
This is so upsetting! My husband and I are preparing to request a Deed-in-Lieu of Foreclosure. AHMSI has also played around with our escrow, we are so frustrated! Our mortgage payment since Jan 2010 has gone from 1904.10 to a new amount in June of 2592.52. It seems as if they do whatever they want. We did a loan modification with them in Nov 2008, but they took forever processing it and dated it Jan 1, 2009, now we can't do a new loan modification with a fixed percentage:( Since they held the paperwork for so long, they failed to let their other office know and continued charging us late fees, even when we paid on time. They were supposed to clarify the issue last year, but they did what they wanted, and now we owe 900 in late fees. We have four young children and are at the end of our rope with them. We need OUT, or this will be a debt that our children will have to pay...we don't want that!

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