Predatory Lending Question

[Moe Bedard]

I spoke with a lady last night who needed help with a loan modification. After speaking with her for a few minutes I realized that these were some funny things going on when she obtained the loan through a mortgage broker. In other words there was definitley some signs of predatory lending.

From being in the industry, I know there are certain guidelines and laws that you have to follow. One that was violated on her refinance was when she signed her loan documents, the notary back dated the papers for 3 days back and they eneded up recording and funding the loan the next day, thus relinquishing her right to a 3 day right of rescission.

What kind of legal recourse does this homeowner have?

[Paul M.]

Failure to provide a three day right to rescind a refinance can lead to a three YEAR right to rescind the loan. That means the borrower can rescind the loan for up to three years after it "closed." Rescinding the loan means that all interest, fees, and some other costs go back to the borrower.

- Paul

[Andrew]

on rescinding the loan. What would happen with refi. I refi'd my loan through homeloancenter and the broker didnt give me the 3 day right to cancel. Would the loan be canceled and orginal mortgage back in place? And what about the the cash out that paid off the credit cards through the loan checks that were issued to each individual creditor?

[Andrew]

Then three days later the called us and told us they forgot to have a prepayment clause in the loan and made us sign that about a week later before loan would fund. And our orignal final statement that was sent 1 week before closing had different orignation fees and broker fees. At closing they were about double that amount

[Moe Bedard]

I forwarded this to the attorneys because it looks like you are DEFINITELY the victim of predatory lending and can have that loan rescinded.

This is EXACTLY why homeowners need to speak up and make these kinds of things public or ask the appropriate people in order to get "legitimate" lega advice. Many homeowners are losing their homes when they can stop foreclosure in it's tracks and go after their lenders. These big lenders aren't so big when you have clear Truth in Lending Act vilolations and now have the AMMO to FIGHT BACK and win!

There are many homeowners who are actually not posting on here and calling me and also calling Fransen & Molinaro to seek predatory lending help. And you know what? We have brought suit against 4 lenders so far for LoanSafe.org forum readers. People who were on their way to losing their homes. THIS IS NO JOKE!

Please post your stories and or call us for help! It can save your home

[mar639]

Moe,
Ive been searching many forums and I am seeing on the various posts that many many people are coming foward with mortgage diffuclties due to the fact that their lender or servicer are actually charging them with various fees and unexplained escrow charghes. They are getting these people into repayment plans that are not acceptable and then offering them to modify their loans and when the lender sees that they cannot afford the new payment plan they forclose on them.In one situation a person was offered a repayment paln which brought her mortage up to $600.00 and after two months her mortgage adjusted bringing her mortage to an extra $1000.00 . Unbelievable...what is happening???
I have been emailing these people to come and check out this forum and see if maybe someone can help. These people are asking for help they don't know what to do. I hope they read my emails and post their story here.
I'm just trying to help if I can, because we are all in a different situation but on a common ground . If we put our minds together we will prevail.

Lina

[Paul M.]

sswiz,

Rescinding a loan basically undoes the loan. That is, it makes the loan as if that loan never happened. This means that any money that the LENDER (or broker or loan officer) received as part of doing the loan (closing fees, points, interest, penalties, etc.) is refunded. Also, the lender can be liable for your attorneys' fees and up to $2,000.00 per violation. That said, you HAVE TO pay the balance back.

For example (and I'm over simplifying here... there are some additional fees and such), say you took a $400,000 loan out and paid 2 points ($8,000) to get the loan, plus some additional closing costs of $2,000 and tehn paid $40,000 in interest over the time you had the loan. Upon successful rescission, you need to pay the bank back $400,000 minus $40,000 minus $8,000 minus $2,000 which equals $350,000. Thus you get a new loan for $350,000, and that is your new mortgage. Depending on current rates (and they're actually pretty good now) your new payments will be lower.

As for cash that you received... you received it and it was yours... there's no refund there... that would not be fair. You only get back what the lender made off of you.

And as for the previous loan that you paid off with the loan you have rescinded... that loanis gone... it was paid off and you cannot get it back.

- Paul

[Moe Bedard]

Lina,

Thanks for getting the word out about my forum. It's 100% viral and organic right now and word of mouth will continue to make it grow into the stop foreclosure safe super site that I wanted it to evolve into.

There are thousands of people that will lose their homes and not just because of adjusting mortgages but from uneducated and illl informed decisions based on inacurate information that is deciminated on the internet and through out the media.

My intentions with this forum is to bring homeowners together with the concrete facts and the professionals who "know" what they are talking about. Because to tell you the truth, there are a lot of people who do not give great advice and some of these advice givers are legal professionals themselves.

Take for instance a bankruptcy attorney who knows nothing of the foreclosure process, loss mitigation for the homeowner and predatory lending. He gets a call from a frantic homeowner and not knowing the foreclosure process or the signs of predatory lending, recommends bankruptcy. Why? Because he to is ill informed and he is going to push that of what he sells. BANKRUPTCY! It's just irks me when I see that. That same homowner could have sued their lender and had the loan rescinded and more!

When it comes to legal issues, truth in lending act violations, bankruptcy, loan rescisions, deed in lieus, tax implications etc., it takes someone who is a professional and knows what they are talking about to give the most accurate and lawful response to these issues.

That being said, if you truly think about what I just wrote, EVERY homeowner needs this kind of advice when they are going through the foreclsoure process. Right? Then why are they just going to these foreclosure resue firms that do not offer this or when they are facing this they seek a BK attorney because they heard of it on another forum. And non-profits should have a network of professionals that can asssist them and I plan to do that with this one website.

That's why I have chosen to seek professionals in this field to align myself with and provide a real value to homeowners who are looking to stop foreclosure.

There are over 200,000 people a month searching the internet for the term 'stop foreclosure' a month and what they are finding is far from true help and accurate information.

Hopefully Google will push my site up in the top 10 for Christmas or number 1 has an authority site.

Sorry for the long post and rant

Originally Posted by mar639

Moe,
Ive been searching many forums and I am seeing on the various posts that many many people are coming foward with mortgage diffuclties due to the fact that their lender or servicer are actually charging them with various fees and unexplained escrow charghes. They are getting these people into repayment plans that are not acceptable and then offering them to modify their loans and when the lender sees that they cannot afford the new payment plan they forclose on them.In one situation a person was offered a repayment paln which brought her mortage up to $600.00 and after two months her mortgage adjusted bringing her mortage to an extra $1000.00 . Unbelievable...what is happening???
I have been emailing these people to come and check out this forum and see if maybe someone can help. These people are asking for help they don't know what to do. I hope they read my emails and post their story here.
I'm just trying to help if I can, because we are all in a different situation but on a common ground . If we put our minds together we will prevail.

Lina

[evel1999]

Maybe I need to really send my papers over to have them looked over. I would have to mail them in as there are so many. I think my lender/broker really took advantage of me.

I did two loans at one time with same mortgage co at the same time. I read on one site where that is not legal. Is that legal? They sold one loan to Centex and the other one to Washington Mutual day of closing. I did not even really need to do my personal residence as I had a 15 yr fixed rate at 5.5 and wound up with this ARM that is going to put me in forclosure. I no longer have the Washington Mutual as I sold that property. My Centex loan was transferred to America's Servicing Co.

[Moe Bedard]

I am no lawyer but that is not illegal for a lender to do two loans on one home.

Many loans were sold that way over the last few years. Most of the 100% Loan to Value mortgages were what they called 80/20 combo loans. Where the lender would do a first trust deed at 80% and a second trust deed at 20% on the property. A lot were 2/28's and 3/27's and they are coming back to haunt everyone.

Were your loan documents back dated by the notary? Meaning did you sign them and the date was a day or so earlier then when you actually signed? Where and when did you sign them? Are your fees on your estimated HUD closing statement less than your Final closing statement?
Was this a refinance or a purchase?

[Paul M.]

RE: "I did two loans at one time with same mortgage co at the same time. I read on one site where that is not legal. Is that legal?"

Without knowing the specifics of your case, let me say the following general information. Many people who put ten percent down on a home took out two loans, one for 80% and one for 10%, which was called an "eighty ten." Those who did 100% financing would often get an "eighty twenty" arrangement. This set-up is perfectly legal, and means the borrower has a first place loan and a second place loan.

Also, a lender is generally free to sell or transfer the loan to another lender. Of course the loan terms can not change as a result of the transfer.

- Paul

[MsLady2]

Hello Out There!!
Call me MsLady2, I found this God send website three months into my application for modification with CW. The postpardom depression is overwhelming to say the least, I'll still be searching for a financier willing
to take a chance on refinancing me, I held on to m twenty five year old
investment it by the grace of God only. I recieved my modification from CW which stopped the inevitable. The property appraiser that inflatted the value
for her kick back has suffered a stroke, so what she gained then will have to
spend on bills like the rest of us, just to say what goes around,....and being joyful in her downfall, just hopes she realizes it. And the knowlege gained due to this forum, to know I was a victim and don't have to remain one, I've found a second wind also find strength knowing someone out there will walk me throught the legalities of reporting and recovering from this life lesson. I've choosen to have a Forensic Loan Document Audit completed, due to four indicators. a regain my propert from the cluches of the original brokerage.
To sleep at night and function during the day I bought an insurance policy
that I pray will payoff my home in the event of my untimely demise due this
overwhelming and constant threat, I'll rest knowing prayerfully my grandchildren would benefit from my blood, sweat and tears.
I ask each of you to tie a knot at the end of your rope and hold on it and
on to your HOME. Thanks MOE!

MsLady2

[Moe Bedard]

Great words there MsLady2! Way to stay strong and I am blessed to have you as a member. Let's get those ropes tied

Have a great weekend and keep the hope alive!

[call4angel]

Hello There this is call4angel!

I'm in the most amazing mess.....

When my loan was closed in Oct of 2005, I did not get a 3 day rescind disclosure. A lot of things also changed like now having to pay taxes and insurance when it was one of the incentives of the loan when I decided to go for it.
How do I go about taking care of this?
Would the lenders actually agree that they violated laws and or statutes?
I'm also in forclosure due to the lender asking for a full 5% pre payment penalty a few weeks to the the end of a 2 year PPP (I had a buyer for the home - I was scheduled for surgery and know I would not have income for months). This PPP which was never disclosed to me when I got the loan or at signing. Now, I do have paperwork with my signature on it but all these was done at the closing table (sign here and here... you know...). Is 5% (which is also more than 6 months of interest) legal?
How do I go about getting things right?

- Really need help... the light is deeming real fast at the end of the tunnel!

[dringhouse]

I am helping my cousin in California with a terrible situation. She was going to move to Washington state and purchased a house there. In the meantime, she refinanced her house to take some cash out for the purchase of the house in Washington. She went through a loan brokerage only because she got some solicitation in the mail from them. She wasn't too concerned about the fact that the loan was an ARM because she was going to sell her house and pay off the loan in a few months.

Unfortunately, she thought her house was worth $525,000 and that's what it appraised at. So she took a loan for $417,000.

The problem is that when she had the realtor come to list the house, it was only worth $375,000. Needless to say, the deal in Washington fell through and now she is stuck with this ARM for more than her house is worth.

She also paid about $8,000 in loan fees and a $10,000 prepayment penalty (which she wasn't aware of) on her previous loan.

What should she do now? Her loan payments are less than interest only so her principal balance is becoming larger and larger.

Does she have any recourse. Not only did she get stuck with a huge loan, she lost the deal in Washington.

They gave her a no doc loan. I'm helping her because I used to be in the escrow business for 25 years and I understand the terminology.

Thanks for any help and direction. She's not in foreclosure, but she is unemployed now and will be if something isn't done.

[Moe Bedard]

If your cousin is the only one on the loan.............she would need an income for any kind of modification..............so you would need to have her call the lender to see what options are available to her from the investor on her loan.

[dringhouse]

Thanks for the prompt reply ***! Her loan has been sold to Countrywide. Any suggestions? I am wondering if there is something fishy about her inflated appraisal and loan amount?

[Moe Bedard]

She needs to call them and ask for options................
Countrywide Home Retention
1-800-669-6650

[dringhouse]

Do you think there might be some fraud with the inflated appraisal and loan amount?

[Moe Bedard]

I can't make that determination, but she can have her loan documents examined if she feels that there could be...........



Free Foreclosure Help, Stop Foreclosure, Short Sales - Loan Safe

[urgent]

***,

if there are violations found within loan docs .. is it true a borrower can " rescind " the loan .. and can qualified to get another loan somewhere else ?

take exmaple in my case ... if i were going the audit route .. and they found some violations ( i'm sure there will be plenty ) .. would i be able to apply for a reverse mtg to replace my existing loan ?

[urgent]

***,

also, is it true all the interests and fees i have paid for over the yrs, i would be able to get them back ?

pls advise. thanks.

[Moe Bedard]

urgent,


You would need to ask the questions of the attorney that you have examining your docs.

[urgent]

***,
would i be able to use the attorney here at loan safe ?

and also how long would it take for the audit to finish ?

[Moe Bedard]

Click on the link below and give them a call...........they would be able to answer the questions that you have as far as what they can do for you and what that timeframe would entail.................

Free Foreclosure Help, Stop Foreclosure, Short Sales - Loan Safe