Am I a victim of Predatory Lending?
by Mortgage Rates on Tuesday, September 21st, 2010 | 3 Comments
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Try this: it’s illegal to borrow money for a down payment. You never qualified for a mortgage of any kind, but you have no recourse since you made the mistake. Go far away, change your name, and start over. AND DON’T LEAVE ANY DNA BEHIND.
You are definitely being screwed. Google loan modification and you will find your answer. Good luck, Rhonda
Your first mortgage is a 30-yr fully amortized loan at an interest rate of 6.875%. Your second mortgage is an interest-only loan at an interest rate of about 10.500%.
Were these the loans you agreed to? Were they somehow misrepresented as something else? Did you think you were getting some other kind of loans? Do you have paperwork that represents different terms or rates?
The lender is required to fully disclose to you the rate and terms of your loans. You signed contracts agreeing that you read and understood those terms. If the loans are not what you agreed to, then you’ve been defrauded and should seek legal recourse. Otherwise, I suggest that in the future you read very carefully any contract you sign – even if you tell them you’ll need days to review it. In real estate, the only thing that matters is what’s in writing.
It’s not illegal for a private money source to lend you money at higher than “market” rates. Even if you and another party agreed that you would take a second trust deed at 11.50% and 5 points, it would still be legal. Be careful what you agree to.
The upside is that if you put no money down, you don’t have any investment to lose – you can walk away without losing a down payment.