AMAuditing.com Launched to Help Homeowners Maximize Mortgage Savings

Depending on what type of mortgage you have and which lender you use, there is a 20% to 80% chance you are paying the wrong amount each month. American Mortgage Auditing hopes to cash in on the alarming number of errors in mortgages by providing risk-free audits to homeowners. Homeowners will only be charged for mortgage audits when an overcharge is discovered and a mortgage refund will be issued.

Most homeowners send their mortgage check each month and never think twice about the interest or payment calculations. Simply assuming your mortgage is being calculated properly, however, can be a very expensive mistake. Depending on which study you believe, and which lender you use, there is a 20% to 80% chance that you are paying the wrong amount each month.

Mortgage mistakes are most common in adjustable rate mortgages (ARMs) where payments typically adjust throughout the year. In fact, private and governmental studies have found errors in as many as 50% of all variable rate mortgages checked. A few lenders, such as Fleet, GMAC, Citibank, and others, have been forced to pay back borrowers millions of dollars but these refunds are insignificant compared with the billions of dollars in uncollected funds. It is estimated that 40% of ARM holders are due a refund. The average overcharge is $1,500.00 and 13% of people with an ARM are due over $10,000.

And its not only the high-maintenance ARMs at risk. As many as 10% of all fixed rate mortgages contain mistakes. Errors are most common when prepayments have been made. Some studies suggest that making even a single prepayment on a mortgage raises the chance of an error occurring to 50%. The problem really boils down to the rigid servicing systems used by lenders and clerical errors," says American Mortgage Auditing president Bryn Merrey. The most common mistake made by lenders is holding prepayments in a suspense account and failing to apply the funds to principal at the correct time."

Escrow accounts and up to 70% of Home Equity loans have been found to similar errors. All told, these mistakes add up to over $10 billion a year in overcharges. The overcharge problem in the mortgage industry is so significant that no one, not even the U.S. Government, has been able to develop an effective solution to remedy the problem. Discovering and remedying errors is a job that has been left to homeowners. Many lenders, in fact, refuse to consider a mortgage audit unless prior evidence suggests the possibility of an error. The good news, however, is that most lenders are quick to refund borrowers for any overcharges.

So what can you do to check your mortgage? A number of companys offer mortgage auditing services for a fee of $149 to $249, but there is no guarantee that you will receive a refund. Fortunately, some companies, such as American Mortgage Auditing will only charge you for an audit when an overcharge is discovered. This means, if you dont get a refund, you dont have to pay for the audit. American Mortgage Auditing also offers LoanStream, a free online mortgage analysis tool that will determine the likelihood of an error in your mortgage. Visit the companys web site at www.amauditing.com to take the free LoanStream evaluation test to determine your mortgages risk exposure.

About American Mortgage Auditing

Located in Boston, Massachusetts, American Mortgage Auditing is a leading provider of mortgage and loan savings solutions. The firm is dedicated to helping homeowners save money, build equity, and decrease debt without refinancing. Using its proprietary LoanStream software, American Mortgage Auditing analyzes loans and instantly identifies strategies to help homeowners save thousands of dollars, cut years off their loan, and acquire refunds when lender errors occur. The firm can be reached online at www.amauditing.com or toll free at 1-877-578-0231.