Is this Predatory?

[sames1]

I had a signed agreement to purchase and I was about to lose my $2,000 if the lender didn't close soon. At least that's what I believed. The broker got the papers to me just in time, but I had to sign them quick and FedEx them back. I remember the day I sent them in. I said to myself "I hope I'm not getting screwed here" That inner voice, I should listen to it.

Only after I signed everything and rushed to get them back did I discover the terrible deal I signed. The payment was higher than I had been told, there was a prepayment penalty for 3 years, the loan/s were 80/20 ( I knew that part) the first is adjustable ( I didn't know that until just the other day) , both loans are interest only. The combined payments I thought would be around $1,200 a month turned out to be $2,200 a month.

Lesson learned. They put so much pressure on me to hurry that I just signed it and sent it back. This blunder may cost me $30,000 to $70,000.

Was that predatory?

[Moe Bedard]

I had a signed agreement to purchase and I was about to lose my $2,000 if the lender didn't close soon. At least that's what I believed. The broker got the papers to me just in time, but I had to sign them quick and FedEx them back.

It's OK to sign things quick. Just make sure you read the papers. I know, you know. Big lesson learned here.

I remember the day I sent them in. I said to myself "I hope I'm not getting screwed here" That inner voice, I should listen to it.

Yes, listen to that inner voice. I always do and it is usually right.

Only after I signed everything and rushed to get them back did I discover the terrible deal I signed. The payment was higher than I had been told, there was a prepayment penalty for 3 years, the loan/s were 80/20 ( I knew that part) the first is adjustable ( I didn't know that until just the other day) , both loans are interest only. The combined payments I thought would be around $1,200 a month turned out to be $2,200 a month.

I know people who read their deal and didn't understand it was a bad deal. So don't beat yourself up. There are actually loan officers and lawyers who signed bad deals, trusting the professionals representing them.

Was that predatory?

From what you described above, I would say for the most part no. It may fall under switch and bait and you may have recourse. But very few lawyers will take these cases on contingency because they are expensive and many times the loan officers and brokers are broke, so if you win, there is no money to collect and very little penalties to the broker.