A class action complaint was filed against American Home Mortgage Servicing, Inc. by Plaintiff Kay Van Hauen and on behalf of all others similarly situated as the class. Ms. Van Hauen seeks damages on behalf of herself and the class based upon the company’s violations of federal and state laws in connection with improper servicing of mortgage loans.
AHMSI as described on its website claims that it provides a higher level or mortgage services and a higher level of customer satisfaction due to its use of highly trained experts. Despite these representations AHMSI services loans but often breaches the loan agreements by misapplying and failing to apply payments to the accounts as well as charging fees and insurance premiums that are improper.
Ms. Van Hauen is a homeowner who had been victimized by these practices. Ms. Van Hauen’s two residential mortgage loans were assumed in mid-2008, one for 80% and one for 20% of the value of her home. In September of 2008 AHMSI misapplied the payments made by MS. Van Hauen, then assessed fees causing the amount owed on the loan to increase. Essentially the mortgage company applied two separate checks with account numbers written on them to her 20% loan and none to the 80% loan therefore causing the 80% loan to incur fees and interest. The company then demanded payment of several thousand dollars with no acknowledgement that all amounts due had been paid.
In fact when they were notified of the error on their part AHMSI refused to apply the payments correctly, and initiated foreclosure proceedings. Throughout 2009 AHMSI refused to accept payments from Ms. Van Hauen and continued to increase the amounts due. When asked for a detailed statement AHMSI failed and refused on many occasions to provide the information.
Ms. Van Hauen is not the only homeowner who has been harmed in this manner. This class action will hopefully bring some justice and reparations to the people who have lost their homes, ended up with bad credit or are involved in a financial battle to keep their home due to AHMSI.
Stanley Iola – Dallas litigation lawyers