American Home Mortgage Class Action Lawsuit

Posted on November 16, 2010 at 10:39am by

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

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10 Responses to American Home Mortgage Class Action Lawsuit

  1. Lester says:

    How can some one join the class action?

  2. David Kaufer says:

    We have had issues with this company since day 1. Our loan was originated with Countrywide (never had a problem), then sold to Fairbanks Capital. Since that, we have had NOTHING but problems. They have never posted a payment on time. It has changed hands 2-3 times already in 9 years. American Home Mortgage Services threatened foreclosure, then offered the HAMP program to us. We have been making timely payments since June 1 2010 on this HAMP program, but have yet to receive any permanent notice of acceptance or otherwise.
    We actually began making payments to this company via Western Union about 3 years ago, and have been doing so ever since to provide record of payments made through a 3rd party (Western Union). How do we get away from this company?

  3. robert ritchie says:

    i too am a victim of american home mortgage servicing inc. they have taken my loan payments demanded we pay in cashiers checks and then put our house up for trustee sale on march 7 2011 i have faxed sent letter upon letter all the response i get is we are 18 payments behind and pay 42000.00 before march 7 2011 or our house will go at auction, they have substituted trustee filed? not filed but also signed by a robo signer cindi ellis who supposedly works for POWER DEFAULT SERVICES thats a lie she works at ahmsi Irvine Ive written every state agency every alliance around and can not get any help ahmsi says we never made one portamento to the loan that was taken over in march 2009 from citi mortgage this company should be the target not the high schools or collages around the country. please help i want to jump into any suit anybodies got with ahmsi Texas or California departments they are crooks who cant produce my note i will seek quiet title

  4. Robert Harris says:

    We were pushed into a modification that ended up costing more per month and after they took over a year to do it (while not accepting any payments), raised my balance $100,000 as well

    How do I join a lawsuit?

  5. Candace says:

    Can someone forward me the attorney’s name and telephone number that is representing Kay VanHausen? I would like to file a complaint agains AHMSI.

  6. Shane S. says:

    I need to join as well.

  7. Linda/Maryland says:

    I have been having the same problems as this and other lawsuits agaist this company.
    I have hired a lawyer and am going to sue them also.
    I think they are loan sharks.
    I have had nothing but trouble since they purchased my mortgage.

  8. nancy krausch says:

    i had the loan modified made payments and signed new documents even had them notarized then ahmsi acted like it never happened actually sent me a letter stating i refussed to coooperate. I stopped paying since they will not tell me which loan they are honoring at this point and i am tired of getting the run around. i tried calling them several times mailing them letter and faxing copies of the documents that were accepted by them before to get them to work with me. Now i dont hear anything from them. No mortgage statements, no phone calls no letters. Is there a class action suit against them or not?

  9. patrick ainsworth says:

    I am disabled and over 65. AHMSI told me I didnt qualify for a HAMP modification but I did Qualify for ” in house modification”.AHMSI dropped my interest rate from 7.25% to 5%,required PITI after I had been paying PI only for eleven years. Although I had a over 65 tax deferment and a great deal of equity AMHSI would not honour the deferment. AMSHI has not credited my April payment and has threated forclosure. THe payments nearly doubled in April.This company needs to be put out of business and the management jailed. AMMSI is far worst than MADOFF or CHARLES KEATING.

  10. sadia says:

    I want to join too How can I join.

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