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You May be a Victim of Predatory Lending

By
Services for Real Estate Pros with Sutton Law Firm

Lenders and mortgage brokers over the last few years took a huge advantage over homeowners by offering unrealistic teaser rates and pay option loans. Many of these so-called ‘financing professionals’ never told their victims that fixed 30 year mortgages were available, and even cheaper, because the brokers received a higher commission on the more questionable loans. People who were better off taking a fixed rate loan were steered into less attractive loans as a result of broker greed and predatory lending.

Can you fight back against predatory lending?

Absolutely. Federal laws such as the Real Estate Settlement Procedures Act (“RESPA”) and the Truth In Lending Act (“TILA”) and a number of state laws require that lenders disclose terms and conditions to buyers. If these terms were improperly disclosed, or not disclosed at all, money damages can be obtained from the lender. In Nevada, if a broker did not investigate whether the loan made financial sense for the borrower then an unfair lending violation has occurred.

It is important to have an attorney review the papers you signed both when you applied for the loan and closed the loan.Our office can review whether the loan you thought you were getting was the loan you actually received. We will analyze whether any predatory lending violations will allow you to cancel the loan. If so, you may be entitled to a return of all interest you’ve paid along with points and fees and statutory penalties. This may allow you to get into a new loan with more affordable monthly payment.

Predatory lending practices may also serve as a powerful defense if you are currently in a foreclosure proceeding. Instead of letting the lender, who preyed on you in the first place, end up with your property, fight back and restore order to the whole matter.

Remember, you can only fight predatory lending by facing it head on. Lenders will not assist in any way unless you are aggressive in asserting your rights.

Why do you charge $95 instead of offering a free consult?

Unfortunately there are many people facing these issues. Please understand that there are not enough hours in the day to counsel people on a free initial basis. But know that the initial fee is credited against future work if we are retained.

As well, there is a cost to pursuing a predatory lending claim, working a loan modification and fighting off a foreclosure. In some cases it can range from $5,000 to $10,000 or more. (But see below for a possible solution.) Still, the legal services performed may save you $100,000 or more in the long run. Many of you have already been affected by free initial come on and do not need to fall into another one. We want to be very clear and forthright as to what is involved. So by charging for the initial consult (and crediting the consult fee to future services performed) we are signaling to potential clients that there is a cost involved. We are certain you can appreciate our position on this.

Can attorneys’ fees and costs be incorporated into a loan modification?

Yes. Attorneys’ fees and costs may be capitalized into the new and modified loan. While no guarantees can be made, money spent on attorneys’ fees may be satisfied through a loan modification by adding them to the principle amount of the loan. For more information, please call please call 1-800-700-1430.

Regards,

Garrett Sutton

Rich Dad's Advisor on corporations

www.corporatedirect.com

To view all of Garrett's books log onto www.corporatedirect.com

Anonymous
Ron Frank

Hi, I am generally not the "victim" type but I am 100% certain that we are in regards to our home loan. We were pitched a decent APR and purchased the house from the brother (executor) of the deceased previous owner at a really good market price in 2004. We had a realtor for the sale of our previous home but did not have one for the new purchase. However, the math does not add up and I've had several friends who are much more familiar with the home buying process that were appalled when they saw the figures. All have suggested that we move forward making this right. I'm not after anything over what we were led to believe we were initially getting for our money. One question I do have for you is about "reverse amortization mortgages". Apparently that is what we signed up for but were not told or explained to. Id never heard the term until late 2010. The house price was $290,000. Our mortgage payment was $2600.00 per month. Four years later (48 payments later) we received a statement that we owed almost 80,000.00 more than when we started. So, after paying $124,800.00 we were actually getting around $1650.00 further into debt on the house. So, if we'd paid $2600.00 + the $1650.00, which is $4250.00, per month - we would have been breaking even... with nothing going toward the principal loan? How much of an APR were we really paying... based on those numbers? I'm not a mathematician but even I can see a blatant discrepancy here.

Thanks for your help and your blog.

Ron Frank

 

Mar 02, 2011 12:16 PM
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