Do You Have A Predatory Loan?


    Whether you are facing foreclosure now or have a loan that has or is getting ready to adjust to a much higher (unexpected) rate, you may be a victim of predatory lending.

    Your mortgage lender or broker may have failed to follow the Truth in Lending Act or other state and federal statutes. You may be entitled to relief and damages.

    If you have received a "Notice of Default", or your home is in foreclosure or you just have a loan that's becoming unaffordable we can unravel the loan you now have from the one you were told you were getting.

 

 

We Have Been Representing Clients Who Are Experiencing Problems With Their Mortgage Lender Since 1989.

 

    We can help you to determine whether you have been the victim of a predatory loan scheme and we can determine whether or not your lender has complied with all federal and state lending laws.


How To Tell If You Have A Predatory Loan

 

 

Did you have to prove your income?

If you did not have to prove your income the loan was approved based on your ”Stated Income“, more than likely an inflated income figure  -  based on the income the (loan agent) knew was needed to qualify for the loan.

 

Failure To Disclose Loan Terms

Creditors are required to disclose the terms of the loan to borrowers, and when those terms are not disclosed or are inaccurately disclosed  laws provide severe monetary penalties against these creditors.

 

Equity Theft

Also called equity skimming, refers to the situation whereby the same creditor refinances the same property with the same borrower multiple times and uses the equity in the borrower’s property to cover the costs of the loan in such a way that it seems like the new loans had lower payments and did not cost the borrower a dime.

Though, the reality is that the property’s equity was being drained with each refinance.

 

Racially Motivated Lending Practices

Both federal and state law prohibit the mortgage industry from providing different loan terms to people based on race, sex, ethnicity, or other protected class. While this practice is often not apparent at first glance, you can see how it arises when loan documents are written in English yet signed by borrowers who do not speak English. Such a transaction may be subject to a cause of action under the Civil Rights Act or other laws.

If you are having problems with your lender or loan servicer, call us to discuss:

 

  • Federal Truth in Lending Act Violations
  • Fraud
  • Real Estate Settlement Procedure Act Violations
  • Home Ownership and Equity Protection Act
  • Fair Debt Reporting Act
  • Loan Servicing Violations

 

If you can answer yes to any of the following questions, you are most likely a victim of predatory lending practices.

Do these sound familer to you?


  • Did you have to show proof of income to get the loan or did you just ”state your income“?
  • Were you charged high closing costs (points and fees) on the mortgage?
  • Did the terms of the mortgage change to your detriment at the last minute before the closing?
  • Does your loan contain a prepayment penalty?
  • Did you receive a "notice of right to cancel" that was not completely filled out?
  • Did you receive your copy of the loan documents at the closing (as opposed to being sent to you later)?
  • Did the closing occur by mail, or at your home, or in another city?