Was I a victim of predatory lending practices?

[victoriangirl]

I am new to this website, and I just read the information on what constitutes predatory lending and I am just amazed! Several things that are listed here have happened to me, and I had no idea at the time!

For instance, when I refinanced almost a year ago, the loan officer at Wamu "steered" me away from a fixed rate loan into the nightmare adjustable rate loan that I have now. I specifically asked him if I could qualify for a fixed rate, and he said yes, but the payment would be higher, and the arm would be a better loan for me because I would have the option of making lower payments during slow months. I am a single mom and self employed and was struggling, and he convinced me that I should take this loan in order to lower my payments and give myself a break until my business recovered from this slow economy, and then I could easily refinance again in a year when rates were lower and business was better. He told me I would save myself a lot of money this way, and not to worry about making the full principle and interest payments, because it wouldn't make enough of a difference to my loan balance over all.

So I recently went in to get a refi and they said I can't qualify. Now I am trapped and I owe more now than I did a year ago! If he had given me the fixed rate a year ago, I wouldn't be in this mess! And now this guy is no longer working there, and Wamu won't even talk to me about my loan. Shouldn't someone be held responsible? Or was I just too naive, and I should now admit that I made a bad decision to follow his advise, and now I have to live with the consequences?

[Moe Bedard]

Refinances are a tough one because although you felt as though you were steered into a loan that wasn't right for you..............in a refinance situation you have a 3 day right of recission.......so you basically have 3 days to look over the documents and cancel the loan if you don't like the terms you were given. On a purchase you don't have that......

As *** indicates, refinances are very tough to get right now due to tightening of lender guidelines and disappearing equity.

This is when loan audits and loan modifications may be your solution.

The Option ARM loan is a very, very tough loan to explain to a borrower and then to disclose the amortization and terms properly. I've talked to many bank loan officers and broker loan reps that do not explain it properly because they don't understand it themselves! I have personally seen many of these loan documents that are flat out incorrect, or misleading.

That is why you may want to contact an attorney on this.