Consumer complaint received 2017-02-02
Company: American Homestead Mortgage, LLC
State: MT
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Last XXXX 2016 I took on a mortgage through American Homestead in XXXX, MT. The whole process seemed seamless and very effective until after I signed all of the closing documents. Before I went to the Title company to sign a rep from American Homestead called to tell me that I would have to put down less money than was disclosed on the original closing disclosure documents. She said great news the owners gave you a buyers credit and you only have to put down x amount of dollars. I was a little surprised and confused at the same time. I asked her twice so I do n't have to put down the full 3.5 % down that the FHA loan requires and my payments will stay the same as what the closing disclosure documents stated. She said yes! I was elated thinking that I would have to put down approximately XXXX less than what was disclosed and my payments would stay at the XXXX. Long story short, 2 months after I signed the contract, XXXX the mortgage company sent me a letter saying that my escrow account was short and that I needed to come up with {$1200.00} ish or that my payments would go up {$100.00} a month for a year. I called American Homestead and spoke XXXX XXXX XXXX the head loan officer and explained to him the situation and he spoke semi aggressively and said that I was trying to take advantage of their mistake?! I was appalled with the nature of the call and decided I would just XXXX it up and make the adjusted higher payments. I have 4-5 payments left at the higher amount and it has been XXXX readjusting my calculated budget to make sure no payments are missed. On a side note my credit bureaus show perfect payment history and I intend to keep it that way even with the higher payment that was a surprise to me. Bottom line if I had been told that by making the smaller down payment than was originally agreed to and that my payments would go up {$100.00} in just a couple of months I would have stuck with the original down payment that I had ready to go from borrowing against my XXXX. The way the rep worded the sellers credit and the readjusted down payment was deceptive. The way I was talked down to by XXXX XXXX XXXX was uncalled for and I will never reconsider American Homestead or recommend them to anyone! Everything up until the down payment glitch was a great process. I was very happy with American Homestead until they made this mistake and told me that I was trying to take advantage of their mistake?! I was n't asking for extra money back, I just wanted my payment to stay the same just like the rep had told me, even after I asked twice that with the reduced down payment that my payments would stay the same! I am in sales myself and if I make a mistake I ca n't go back to the customer and tell them tough luck and by no means would I ever tell any of my customers that they are trying to take advantage of my mistake if I made XXXX. No one is perfect, I get that, but I was treated rudely and mislead. This is an example of how not to treat a consumer.

Company response to consumer: Untimely response