Is this lender fraud? - Posted by rm

Posted by HTG on October 24, 2003 at 14:01:52:

AmeriQuest is a subPrime lender and from what I have heard doesn’t have a very good reputation. Fraud is defined as anything that is untrue or is hidden from the investor as a way to deceive. To back date is definately fraud. After hearing that, I wouldn’t dare go any further with them. They are trying to do a lease/purchase as a refi which is OK and is usually done after 12 months of payments. This loan officer is either very dirty or not trained properly. Either way, I personally would talk to another subprime lender or two locally to see what they say. At least, you know how to find them if something goes wrong.

Is this lender fraud? - Posted by rm

Posted by rm on October 22, 2003 at 20:13:19:

Thought I’d post this here, in addition to the main news group…

Okay, maybe I’m naive, but I’m blown away by this…

Got a call from a T/B I put into a house at the end of July.

Wife calls and says she responded to a “refinance your home” e-mail.

Ameriquest says they can do a loan and bring their monthly payments down by $200/month.

Mind you, my lender said in July that they’d need 12 months.

Am says they can close the loan by this Friday.

I said, “I’m going to be out of town on Friday.”

They said, “Don’t worry, you don’t have to be there. We’ll just send you a check.”

I- stupidly- said, “Oh, okay.”
[Later, I “remembered” that oh yeah, I might actually have to SIGN A DEED. Duh!]

I said, “We don’t even have a buy/sell agreement.”

They said, “Just send a copy of the land contract.”

I said, “There isn’t one- this is a lease-option.”

They said, “Can you write one up?”

I said, “I guess so, but what’s the point of having a L/C if we just sign it today.”

They said, “Just back-date it.”

I said, “Back-date it? To when?”

They said, “12 months.”

I said, “12 months? I just bought this place in July?”

They said, “Alright, don’t worry about it. Just do it for July.”

Then, they send a blank L/C that has ZERO in the spot where the sales price is supposed to be.

And no blanks for important things like, seller name and buyer name.

I asked them, “Hey- you really think you can close this on Friday?”

They say, “Oh yeah, definitely. We’ve closed them in as little as 22 hours.”

I say, “Well, I have two loans on this property. How are you going to get payoffs in time?”

They say, “Oh, don’t worry about that. If worse comes to worst, we’ll just cut you the check or we can calculate it based on your note. If there’s a little overage, you can get reimbursed by your lenders.”

Geez, Louise, I’d like to help my buyers get a break in their payments, and I’d like to cash out, but will I get burnt at the stake if I go along with this freight train?

Re: Is this lender fraud? - Posted by Rich

Posted by Rich on October 27, 2003 at 11:47:50:

The “loan officer” was trying to push up his numbers for the month in a shady way. The reason he said he could close by friday was because that would be the last day he could do business that would count for Oct.

Am has a 7 day recission period. This is suppose to give the borrower peace of mind in case they wanted to back out or viod the agreement. In actuality, this gives time for Am to gather all payoffs, title, appraisal, etc.

They’ll send mobile “closers” out to you to sign docs, anytime, anyday.

Most Am loans have a 3 year ppp unless you want to pay even more points.

Also understand that they reduce payments by extending the loan term further out - Being that Am is primarily a subprime lender, you’ll be dealing with higher rates, points, and most likely a 3 yr prepay.

Re: Is this lender fraud? - Posted by Dimpil

Posted by Dimpil on October 24, 2003 at 16:21:14:

Also, IF you go along with what they are trying to do, you are a conspiring to committe a fraud, what recourse would you have if anything went wrong??