Where do I go from here? Submitted Loan Mod and then realized inital loan was predatory

[Erika24]

Hello,
I was a victim of predatory lending. The reasons that I believe my loan is predatory is: 1) the loan is structured in a way that I cannot afford. I have a balloon payment at which time $70k is due; 2) my loan officer falsely reported my income to be twice of the income reported on the W2s that I supplied him; and 3) inducing me to obtain a loan that he knew I was unable to pay back. He also knew that I was planning on purchasing the house with someone who was not credit worthy and told me it would be no problem, just to put the loan in my name.

I submitted a loan modification application a week ago, but after realizing that my loan was predatory, I would like to inform my mortgage company in hopes of getting a more favorable loan.

My questions to you are: 1) what is the best way to notify my mortgage company of the predatory nature of my loan? 2) what lending law(s) was violated when my loan officer lied about my income. Right now, I have documents from my loan, but none of them are signed. Should I request signed copies of the loan documents from my mortgage company?

Thanks in advance for your reply.

[jakelabry]

Originally Posted by Erika24

Hello,
I was a victim of predatory lending. The reasons that I believe my loan is predatory is: 1) the loan is structured in a way that I cannot afford. I have a balloon payment at which time $70k is due; 2) my loan officer falsely reported my income to be twice of the income reported on the W2s that I supplied him; and 3) inducing me to obtain a loan that he knew I was unable to pay back. He also knew that I was planning on purchasing the house with someone who was not credit worthy and told me it would be no problem, just to put the loan in my name.

I submitted a loan modification application a week ago, but after realizing that my loan was predatory, I would like to inform my mortgage company in hopes of getting a more favorable loan.

My questions to you are: 1) what is the best way to notify my mortgage company of the predatory nature of my loan? 2) what lending law(s) was violated when my loan officer lied about my income. Right now, I have documents from my loan, but none of them are signed. Should I request signed copies of the loan documents from my mortgage company?

Thanks in advance for your reply.

This is going to be a tough one to prove - you sign an application that says every thing on it is true and accurate. In other words, you "verified" the loan officer's lie by signing the application. It would be their word against yours if your signature is on the paper. I don't believe any of the things you mentioned are "proveable." Your best best bet would be to do a QWR to your lender/servicer and have the documents audited.