Ameriquest Predatory Lending

I obtained a refinance through Ameriquest in 2003 with a "fixed" rate that lasted 3 years, then went to

an adjustable rate that only ever goes up. I initially turned down this loan offer because of those issues,

but was told they have a department that would contact me to do a cost free refinance within a year of

my closing date. That year came and went and I started calling them. No one there seemed to know what

I was talking about, no such department existed. I continued pursuing this until Katrina came and totally

destroyed my house. Ameriquest offered to delay 3 months payments, but all was due at the end of 90

days. That was no help whatsoever, so I declined their generous offer and made my mortgage payments.

In fact, I have been making them ever since the storm and my house is STILL gutted and unliveable. I

received a rebuilding grant that barely touched the costs of repair, since my 90% damaged house was

estimated at 62% damage and rebuilding costs have skyrocketed. Since the house is still gutted, they

won't refinance. "We have to protect our interest in the house." Now my payment has risen twice, from

a rate of 8.25% to 11.25%, resulting in almost $200 a month higher payment. It will continue to go up

every 6 months, but if the prime rate goes down, my payment will NOT. When I told them I could

not afford higher payments, I was told I was getting all this free money from the state. The inference

being that I could afford to give them more money from the rebuilding grant. Here is the punchline:

I was told that MOST of their Katrina customers had stopped making payments, and that had I done that, I

would qualify for a loan modification, but since I had continued making my payments, I had shown that

I had no hardship, therefore, I do not qualify for any loan modification. I wanted to protect my credit

rating that is significantly higher than it was when I got this loan as divorce issues dropped from it. I

also felt that the responsible thing to do was pay my debt, since it was not their fault my house was

destroyed. I wondered why they would "help" the non-payers and ignore me. Those who stopped paying

wrecked their credit and are now at Ameriquest's mercy for whatever rate they get and are trapped into

remaining their customer for who knows how long. If I ever get this house fixed, I will have the freedom

to dump AMC/Ameriquest for a more reputable company. The biggest problem I face now is avoiding

forclosure because I truly CANNOT afford these ridiculously high payments. The chances are now very

good that they will end up getting my house back. Fixed, my house will be worth well over twice the

pre storm value and they stand to make a fortune by finishing repairs and selling it. The worst part of

that is that this house was the foundation of my retirement.

I've been living in the smallest most bare bones camper FEMA issued for 18 months and am looking at

at least another 18 months or until the feds come get it, but I have no hardship. This is how AMC/

Ameriquest treats those who lost everything to Katrina, but continued to make their payments anyway.

That should tell you how they will treat everyone else. Be forewarned! The predator is always smarter

than that which it is devouring.....and if you do business with these people, devouring you will be

their primary purpose!