Lawyer in the House?

[MustangAl67]

My fiance (the house and mortgage in her name) and I bought a three family house Sept. 2007. I knew what I was getting into and refused to sign a ARM. We went with 80/20. 7.5% and 14% +/-

About 5 months later, we received a call from a operations person saying we had to refinace the second mortgage (20%) because there was a document we didnt sign. Not to worry though that they would be paying the closing costs and all fees. Also the interest rate would drop 2%. I was like WT**?

We were looking at another property and knew that there would be a hit on our credit report for a new account. I told my fiance to cancel the appointment. At this point she is all worked up dealing with this operations guy. He told her since we cancelled the appointment at the end of the month that our prepaids would be higher. He also said there would be no hit to our credit report. My fiance gave in and rescheduled.

There is no doubt that we were bullied and strong armed into this. I still dont know why or how. This is from a major bank, and they dont do subprim from what I read.

1. How do we find out what happened.
2. What recourse do we have to either modify the mortgage etc.?
3. What responsibilty does the attorney have, I mean she gets paid to overlook the paperwor, and that is it. She represented us and the bank.

[Moe Bedard]

Thanks for joining Loan Safe and sharing your story!

It sounds like something DEFINITELY is fishy here and I have been doing this long enough to know if it smells like a fish, then it's a fish.

Whatever they did on that first loan, you may still have rights and you may have legal recourse against them. You should speak with a lawyer who can advice you on what legal recourse you do have, if any. Subprime or Prime, does not matter, predatory lending is predatory lending. In knows no boundaries.

1. Call an attorney for a free consultation. You can call the one on here or go to National Association of Consumer Advocates – Consumer Protection Advocates and Attorneys and look for a consumer advocate attorney.

2. You will find this out from the attorney

3. Same as above

You are just in a legal situation that needs sound legal advice. You do have rights and I am sure you will get this worked out. Doing this by yourself is HIGHLY not recommend because of that.

[MustangAl67]

Follow-up to this thread, but felt it was going in a new direction.



So I did more research and it seems that the bank violated Preadatory lending in my state. The interest rate was considered a high rate interest rate in which you (according to my research) can't do no doc loans, have to have third party counseling etc.

After 5 months they realized their mistake and strong-armed us into refinancing even though I was working on another real estate deal and didn't want the mark of a new account on our credit report. We pretty much had to do it.

You will have a lower interest rate the said, big deal 2% on a 20% second mortgage. They were just trying to sweep their mistake under the rug. Here are my questions.....

1. Even though they refinanced it would seem to me the new loan is just really an extension of the old loan. Especially since they didn't in good faith try to help us or offer the counseling that is mandated by law. Legal basis here?

2. Is their some type of fraud in the way they forced us to refinance?

3.*** What makes a lien subordinate to another. On the application it says the first mortgage (the 80% portion that is not in dispute by the same lender) is subordinate to the new loan. It also says that currently our firs mortgage is xxx and second is yyy, and then a proposed section it has it reversed. first (new refinance) yyy, and second (old 1st) xxx. I looked up the deed and the refinance is still secon. This is important because if it was refinanced as a first mortgage then the interest rate benchmark for high interest loans varies, and they violated the law AGAIN!

3a. The original was a no do (liar loan) with inflated income, we were never interviewed for the second time for the application, they just copied it from the first app five months earlier. The interviewer listed didn't even work for the company as his office closed.

4. Since it is a 80/20 combo loan is the 80% innocent for a lack of a better word. In other words there would be no 80/20 without the illegal 20. "Why are you taking my 5,000 sq. ft mansion, I never sold drugs out of here"

[Moe Bedard]

MustangAl67,

Above Moe gave you some resources to find an attorney..........you really need to consult with an attorny on these matters.......