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American Home Mortgage Servicing Using Unlawful Collection Tactics

Texas Attorney General Greg Abbott filed a lawsuit against American Home Mortgage Servicing (AHMS) for serious violations of state law that may have contributed to unnecessary foreclosures to Texas homeowners. The lawsuit was filed August 30, 2010 and is seeking civil penalties from the company.

An investigation of AHMS by Texas officials found several violations of the Texas Debt Collection Act and the Texas Deceptive Trade Practices Act (DTPA). Each violation of the DTPA is subject to a $20,000 civil penalty against the firm.

Texas investigators found that some homeowners who made their payments on-time were falsely accused of late or missed payments. AHMS incorrectly charged late fees and forced some homeowners to establish unnecessary escrow accounts as common methods for increasing revenues. Some homeowners had their accounts drafted for the payment only to find that their account was not properly credited with the funds.

Some mortgage defaults were attributed to the illegal actions of AHMS. Foreclosure proceedings were subsequently initiated on properties in which the homeowners had actually made their payments, only to have them improperly credited to their account.

Finally, AHMS's home retention team was found to be substantially ineffective. Most applicants did not qualify and were unable to avoid foreclosure. Others who did receive a mortgage modification found that their mortgage payments increased rather than reduced.

AHMS customers should contact the office of the Attorney General in their state to file a complaint. Texas customers may call 800-621-0508.

Posted: 9/1/2010 2:20:15 PM by Ken Long | with 3 comments
Filed under: practices, trade, deceptive

Trackback URL: http://www.debtorsunite.com/trackback/c2d5c7b1-1103-4136-b797-b1811ce5752b/American-Home-Mortgage-Servicing-Using-Unlawful-Collection-Tactics.aspx

Comments

	sylvia gobble
	Amhsi has NOT been posting my payments correctly. I paid them 8400.00 in oct. 2010 to bring my loan current. In nov. I called to make a payment and they told me I was not due a payment I continue to try to make a payment calling back 3 times weekly. It seems like they are trying to make me behind so they can forclose. i just want to make a payment. The amount they are asking for for dec. still includes 509.00 in negative escrow which was paid (included in the 8400.00). I was told they put 1300.00 in corporate advances when it was to be applied to my escrow. In the past they have told me I was behind when i wasnt or that i was not due when i was. This company needs to be investigated for fraud and mis appling funds. I think I am going to need a lawyer.
	11/28/2010 8:38:02 AM
	Report abuse

	Lynda Abbott
	Two days ago we got another increase on our loan.Fixed rate, one increase two months after buying our house, and a $42,000 down payment. After it took two weeks to cash our payment, they say they need an extra $100 for excrow!!! They are calling my husband's work for us to sign a modification, and calling our home 5-10 time a day. I have been in contact with the Ohio AG's office several times in the last two years. They are still doing exactly what you are sueing them for in other states. Why can't the federal goverment stop them from doing this in other states?
	10/20/2010 8:07:04 AM
	Report abuse

	Michelle Rice
	Thank you! Thank you for submitting your consumer complaint. Click here to return to ConsumerAffairs.com. The following information was successfully added to the ConsumerAffairs.com database Name Michelle Rice Address: EDITED millington , TN 38053 Country: United States Home Phone EDITED Work Phone EDITED Email Address: EDITED Company Name: American Home Mortgage Servicing, Inc. Company Contact: Customer Service 1877-304-3100 Company Address: something belt line road coppell TX Country: United States Company Phone 877-304-3100 Incident My husband and I, about a year ago got 3 or 4 mos. behind on our mortage with American home mortage servicing, inc. We had to pay around 2500 dollars which we did not have and had to borrow from a friend who we still owe to keep from losing our home. In addition, we got put on a repayment plan that brought our note from 847 up to 1303.98 per month for the next 12 months. We have been struggling to pay it but have. In August of this year, however, I only paid around 500 to 700 dollars on my august payment. I set up a plan on our budget to pay by the end of october, the rest of august\'s note, septembers and octobers note. I called to let them know and they said i have not paid since june 2010 and that is not true. I went through all my records that I can find and did indeed find my money orders receipt showing i paid july\'s note and they (ahmsi) does show i paid on augusts note. Because I pay in pieces of the 1303.98, they put the money in a miscellaneous account. I think all my money is sitting there but everytime i call it is difficult because the peop.le answering the phone are from india and there is communication issues. They are sending me as of last Friday a print out in the mail of everything i paid for the last year. I cannot wait to see this. I hope it shows where they have been posting my payments because I dont think they post them right. When i kept questioning where they put my payments they kept going back to a year ago when we were behing and they act like that is the reason i am behind now. But the repayment plan we are on and the 2500 or so we paid should have fixed all the late stuff from a year ago. I don\'t get it. The website of ahmsi shows we did make the june and july\'s payment and shows about half of augusts payment which is correct and june and july were sent in their entirety, not partial payments like i usually do sometimes. and they still posted them to miscellaneous and/or suspense accounts. Why did this happen adn how can i get it posted correctly. I am desperate here and can barely make the payment as it is. We are struggling so very bad and now my payments are not even being posted correctly. Trying to take care of this is stressful, taking time away from my new job which i must have to make these payments. They dont understand and i dont understand them. I need someone who is fluent in english as their native language to assist me. Damage Resulting see above - - I have crohn\'s disease among other illnesses (mental and physical) and it is extremely difficult to work. I did not get approved by disability on my 3rd try so working is very difficult; i have a lot of pain and fatigue. I can barely make the house note as it is. I dont need them to mess with me and not post the payments correctly. My life is HARD ENOUGH as it is. Have Lawyer Contact Me Y Thank you for your submission. You should receive an e-mail confirmation shortly
	9/23/2010 10:24:45 AM
	Report abuse

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