Do You Think I'm a Victim of Predatory Lending

[vkswede]

Hi Folks,

I was watching Dateline nbc yesterday regarding home loans and lending, and when I checked my loan docs with CW somehow they listed my monthly income as 8,850 $ monthly income, and this is back in 2005? our joint taxable income me and my wife back than was less than 70,000. now, she is not listed as a borrower on either loans which is good in away. I'm just wondering if this counts against CW specially now I have the townhouse on short sale? thanks >>

[Dan Bailey]

vkswede,
I'd say about 99% of us are in that same boat. An attorney can use the info in some ways to help negotiate....but for the layman, it's kind of "Get in line with the others".

[LHarveyMadman]

You were sold a "stated income" loan. These were fairly commonplace before the credit market crisis, and were popular among lower-income families who would not otherwise qualify for a mortgage. Some people may not have realized what they were getting, but many people knew exactly what they were doing. It sounds like you fall into the former category.

When home prices were rising, stated income loans were not a problem. When a person's ARM was due to adjust, he could either refinance to another stated income loan or sell the house at a hefty profit.

This was a tool used by many budding investors in the real estate market to buy several properties and thus drive up home prices. This was a tool knowingly abused by some people to buy a home that was far more expensive than they could really afford. Example: there was recently a story about a person that earns $50,000 a year and bought a $1,000,000 home. He knew that his income couldn't really support a house like that, but he and his loan officer colluded to fudge his income and get his loan approved.

The task for you here is to try to demonstrate that you did not realize that your income had been inflated to prod you into a buying a home that you really couldn't afford. Did you sign the loan application that listed this inaccurate income? If not, then you might have a case for predatory lending - you can say that you never approved the details on the application. If, however, you signed the application, it might be harder to prove, but if the loan officer pressured you into signing without giving you a chance to review the documents, then you might have a case as well.

It is my opinion that if you sign a document, then you are taking responsibility for its content, even if it is inaccurate. However, I know that loan officers can be like used car or timeshare salesmen - high pressure, high speed, with take-it-or-leave-it warnings. At my closing, I went through each and every page of the closing statement and disclosures, and had my wife do the same. It took over twice as long as usual to close, but we didn't care. The loan officer, realtor, title company rep, and notary were all getting antsy, but I just ignored them.

[snapple candy]

Madman, too many inexperienced did not do a thorough review as you did and could not deal with the pressure of having all those people breathing down their neck to hurry up and sign.
I suppose if one has their original application submitted with the actual income figures filled in by the borrower to compare with final loan docs with inflated income inserted, it may be helpful to prove a case of predatory lending.

[alvin9]

Hi,

I was reading the thread and I had one propertie stated I think and the other full doc but my income was said that I made 15K a month...lol...in my dream and I look into it some more and more lies were found. I just back then anything could of been done as long as you pay anybody to help you lie....I am very sick to my stomach about all of the lie, cheat and steal ws done to the American public. I do a question about what Presdient Obama passed on March 4 I believe...I just dont know how can it help me when I have a sec loan on my property.

[vkswede]

We provided the loan officer our paycheck stubs and W2's, and he asked me if we were making more than 70.000 yearly me and my wife , I said yes! give and take, but I did not tell him we are making more than 100K. if I intentionally were trying to lie about my income I would chosen to buy a house not a townhouse. The only good thing he did is he not list my wife on the Loans, she is only on the deed.

[alvin9]

All I can tell you is a that time things were possible. The broker got paid, loan officer if possible and probably people in the lending group. If your loan was done due to fraud...i would get an attorney and there are nonprofit attorney like probono. I would goggle some up and talk to them becasue some of them want to get paid big bucks and you might not have it so sometimes you might fall in the right hands with someone who will help you. I hope this helps you. I have learned from experience that you need to go after what you believe in becasue it is your house and if your loan was mislead or lied..then fight and you might get some benefit out of it. I was told to hire an attorney that charges only if he get you a settlement because that means he will work hard. Let me know if you have any other questions.

[vkswede]

Thanks alvin!

[slbedell]

My loan application is blank.
I did not sign it.