Consumer complaint received 2023-11-28
Company: AMERISAVE MORTGAGE CORPORATION
State: KY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage
Sub-issue: Closing disclosure or other related disclosures

Complaint:
Amerisave Mortgage Company Complaint XX/XX/2023 : Amerisave was contacted about potential mortgage company for my husband and XXXX XXXX XXXX ( Loan XXXX NMLS/KY License ID : XXXX XXXX ) took the call for Amerisave, and helped begin the process. A second call was made later that night, and she told us, In order to lock in the interest rate for the loan, we must pay for a Home Appraisal through their company. The total for the appraisal was {$540.00}. My husband, myself, and my mom ( explained to XXXX XXXX how we would like the loan set up : We are first time homebuyers and XXXX XXXX had us set up for a FHA HUD Loan with 3.5 % down payment ; My mom and step-dad were selling my husband and I their house for {$150000.00}. My mom and step-dad wanted {$150000.00} minus what they owed on their loan ( approx. {$13000.00} ) so they would receive approximately {$130000.00} at the time of closing. She agreed she could make that happen, and we began signing disclosures. 

XXXX XXXX  : First disclosure signed with a down payment of {$2700.00}. 

XX/XX/XXXX  : Another disclosure to sign from the company with a down payment of {$12000.00} ( I contacted XXXX after signing because I realized the down payment was incorrect and she fixed it on the next disclosure ) a Gift of Equity for {$22000.00} from my mom and step-dad. ( The Gift of Equity was never fully explained to use, because we do not know how it works completely- we were just told the gift of equity would not affect how much my parents received at closing. ) XXXX XXXX  : Between XX/XX/XXXX and XXXX, XXXX, I called XXXX to let her know the down payment was incorrect on the last disclosure. She sent a new disclosure to be signed. The down payment on the current disclosure was {$6000.00}. The Gift of Equity remained at {$22000.00}. 

XX/XX/XXXX  : Another disclosure was sent to be signed ; The down payment on the current disclosure was {$6000.00}. The Gift of Equity remained at {$22000.00}. 
_______________________________________________________________________ That was the last disclosure I received until the two nights before closing. 

Between XXXX XXXX and XXXX XXXX another person took over the loan. His name was XXXX XXXX ( XXXX XXXX XXXX ID # XXXX ). XXXX made things VERY difficult. He requested many things that were not needed or that had already been uploaded into the portal on Amerisave.com, he had us change the Gift of Equity from {$22000.00} to {$36000.00}, I asked multiple times if that would affect the money my parents received, and he would never give me a straight answer. Eventually after many attempted phone calls to XXXX XXXX, I had to go up his chain of command and explain what was going on. XXXX boss was no help, and I asked that he be removed from our Loan because too many problems had been created since the time he was assigned to our case. XXXX boss had XXXX XXXX call me to relay this message : Because we are so close to closing on this loan and XXXX has done so much work, we are not going to be able to take him of your loan, but their will be no contact made from XXXX to you anymore- I ( XXXX ) will take over and be your point of contact for the remainder of the loan until closing. That was fine with my husband and XXXX XXXX knew exactly what my mom, step-dad , husband, and I expected from this loan and tried to fix some of the things XXXX had messed up. 

We got the notification to call our attorney the week before XXXX XXXX  to set up a closing time. Our attorney, XXXX XXXX XXXX, Attorney in XXXX, KY XXXX scheduled our appointment for closing on XXXX XXXX. 
_______________________________________________________________________ XXXX XXXX : Three days before signing, we got our final disclosure to sign on the portal for Amerisave. This disclosure was different. When signing the final disclosure it gave my husband and I a list of our debt and asked if it was correct or needed to be changed. We had not had any new debt, so we choose the option everything is correct. My husband, mom, and step-dad do not purchase and sell houses. This is the first house my husband and I have ever bought, so we trusted the mortgage company and our attorney that they new what they were doing. 
The closing disclosure never showed up, so I was not sure what was happening. The night before closing, XX/XX/, I was able to locate the final disclosure on the portal. It looked the same as the other disclosures, as I flipped through. 

XX/XX/XXXX  : Closing Day. Everything seemed to go smooth with the transaction. My mom and step-dad received {$130000.00} ( with the remainder approx. {$13000.00} to pay off their mortgage- which seemed correct, as far as we knew and could see from what the settlement agent/attorney showed us. 

XXXX XXXX  : Between the time of XX/XX/XXXX and XXXX XXXX, I went back into the portal to retrieve ALL the disclosures and see if i had missed something- everything in the portal was removed and my husband and I are not longer able to see anything we signed or uploaded ( I did print the disclosure forms as we signed the,, that is why I am able to have the exact amounts for the down payments ). 
The check my parents received on the day of closing was not going to go into their checking account until XXXX XXXX. At that point, they had another mortgage payment come out. We gave it a couple of days for their mortgage to get paid off since their other check had not been deposited in the bank. 

XX/XX/2023 : Their check for {$130000.00} was deposited, but their mortgage still remained. Our attorney, XXXX XXXX XXXX, Attorney in XXXX, KY XXXX was called and asked about my mom and step-dads mortgage on the house. That is when we started really looking at the final disclosure ( that our attorney XXXX XXXX did not go over with us ). On the final disclosure, Our attorney, XXXX XXXX XXXX, charged us for a title search and lien on the property, but did not follow through and put my parents mortgage on the closing disclosures. So, their loan never got paid off. Amerisave also put out 3.5 % down payment of {$6000.00} to a down payment of {$20000.00} WITHOUT our consent. Below is a screenshot of the final disclosure and down payment. 


Once we realized that my mom and step-dad 's mortgage did NOT get put on the disclosure to be paid and our down payment jumped up over {$14000.00} without our knowledge or consent ; we immediately began making calls to have our Attorney XXXX XXXX make an Errors and Omissions Claim ( at which he told my mom, he would not do ) and make calls to the Amerisave mortgage company to try and either retract the loan, or fix the problem. 

XXXX XXXX  : Our attorney, XXXX XXXX XXXX, Attorney in XXXX, KY XXXX sent my parents a letter ( below ) stating : RE : SALE XXXX and XXXX -- -- -- - : This letter is being sent in connection with the sale of your home which took place on XX/XX/2023. As you are by this time aware, there is an existing loan which collateralized the property located at -- -- -- -- -- -- -. The Loan was made with XXXX XXXX  and is of record in Mortgage Book XXXX, Page XXXX and Mortgage Book XXXX, Page XXXX. XXXX XXXX XXXX XXXX XXXX. 
This loan should have been paid off at closing. However, due to a mistake in the title insurance commitment documents, combined with miscommunication to and from Amerisave Mortgage Corporation, the balance of the loan was not satisfied at closing. As such, there remains a valid first lien against the property in favor of XXXXXXXX XXXX 
This letter should be taken as further notice that you still have an outstanding debt to XXXX XXXX. While I do not know what the existing balance is, -- -- -- -- indicated that it was around {$13000.00} during a phone call I had with her on XX/XX/XXXX. 
Even though there was a mistake and miscommunication which ultimately led to this issue, that does not change the fact that you are still personally liable for the balance of the note you executed with XXXX XXXX. That loan is a personal liability to you both and it should be paid in full as soon as possible. 
I think it is important to remember that had the loan been satisfied at closing, your sales proceeds of XXXX would have been reduced by the amount of money sent to XXXX XXXX. 
I hope this letter clears up any further confusion. Please feel free to contact our office with any further questions. 

XXXX XXXX, the attorney said he made the mistake and would my mom and step-dad 's mortgage payment that came out, which was around {$280.00}, but was sorry that was all he could do for them. He stated very clearly to my mom he would NOT make an errors and omissions claim to try and fix the issue. 

Amerisave was also contacted about the down payment amount, and said there was nothing they could do to fix that problem either since the documents were signed. 


XXXX XXXX : Many calls have been exchanged between myself, my parents, XXXX XXXX ( the attorney ), and Amerisave mortgage company. As of this date, nothing has been resolved, and XXXX XXXX and Amerisave Mortgage company have only protected their selves and will not do anything to help us. They say they are trying, but it has been long enough and this issue should have been resolved by now.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation