Consumer complaint received 2016-05-05
Product: Mortgage — Conventional fixed mortgage
Issue: Application, originator, mortgage broker — 
Company: AMERICAN SOUTHWEST MORTGAGE CORP. (TX)

This is a follow up to Case # XXXX. I have been in my home for 18 months. On XXXX XXXX, XXXX the current servicer of my mortgage ran an escrow analysis that resulted in my monthly mortgage payment increasing from {$1400.00} to {$2600.00}. This was reportedly the result of the XXXX property taxes being grossly underestimated in the payment schedule presented to me. I have a 30-year conventional loan with a fixed interest rate. The new payment of {$2600.00} is being imposed over 18 months in order to reimburse the XXXX Escrow shortage and to make the XXXX Escrow balance current. My finances will not allow me to make these substantially increased payments on this mortgage at the new monthly payment. At closing, the Title Company included a Payment Shock Notice, which makes mention to an expectation for bills to increase substantially and my monthly escrow payment could be much higher. These terms are very ambiguous and the increase I experienced is not substantial, it is tremendous and I feel, in no way should be considered reasonable to impose on a consumer. My inability to afford this new payment will cause me to immediately default on the mortgage, it will cause financial turmoil, and will cause immeasurable disruption to my family. This situation is absolutely unreasonable, and my family is the victim of a massive mistake that was made by a professional organization that we trusted to handle the transaction of purchasing a home. 

The response provided by the current loan servicer simply restated the facts and the information I had originally provided. I would like to bring attention to the last Good Faith Estimate provided to me days before closing, which I have included as an attachment. American Southwest Mortgage Company, who originated the loan, estimated my taxes to be approximately {$430.00} a month, and to be included with my monthly payment, for a total monthly escrow payment of {$630.00}. It was my understanding based on this document, that American Southwest Mortgage Company was fully aware of the magnitude of the property taxes that I would be subjected to once the escrow analysis was completed. Somehow, between receiving this Good Faith Estimate and the closing, the loan documents changed to exclude the real property taxes. I am concerned that this was done in an effort to fund the loan, as I would not have qualified at the higher payment based on my debt/income ratio. During the closing, it was not made clear to me that there had been a change that would omit the property taxes, ultimately leaving me with this large escrow shortage. The series of events that led up to closing appear to be deceitful and intentional. The property taxes were not unknown, and they left the property taxes as unimproved property in order to reduce my monthly payment, knowing full well that this would become an issue in the future. 

Another item of concern is that the Builder ( XXXX XXXX ) and American Southwest Mortgage Company were talking in the days leading up to the closing, and ultimately XXXX ended up paying more towards the closing costs in order to help close the deal ( Change order dated XXXX attached ). This was not prompted by me, or explained to me why it was happening, but it appears as though they were working together and did everything possible to make sure that my mortgage funded, ultimately leaving me with the escrow shortage 18 months later. 

I feel that this loan was originated under deceitful and fraudulent practices and I probably never should have qualified for this deal. The solutions to this problem all result in me losing money : If I move, I pay commission to sell ; If I stay I may not be able to afford the payments, resulting in fees and penalties and my credit will get damaged. This is unfair and unacceptable to impose on a consumer.