Predatory Lending Question

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caldwell02

LoanSafe Member
Jan 30, 2010
2,491
18
0
70
Me again. Title company doesn't have that stuff. Should have known. All I have is a revised application with just my name and several places highlighted that they wanted me to sign - but I didn't, and the company that sent them is out of business (just tried to call).
 

mel239

LoanSafe Member
Jul 14, 2009
81
0
0
my loan was for 275,000 I deucted the 4 bills they paid,payoff of my house,cash to us{im looking through our bank accts,I swear I cant remember getting that money,but I have memory problems}anyway I deducted the settlement charges and the reserves taken out.Problem I have,and it might be a simple misunderstanding on my part-but where did the6,784.07 go to?Ive combed all my papers and cant find anything-anybody have ideas where I can look on my papers?
 

faith

LoanSafe Member
Feb 1, 2008
973
9
0
California
my loan was for 275,000 I deucted the 4 bills they paid,payoff of my house,cash to us{im looking through our bank accts,I swear I cant remember getting that money,but I have memory problems}anyway I deducted the settlement charges and the reserves taken out.Problem I have,and it might be a simple misunderstanding on my part-but where did the6,784.07 go to?Ive combed all my papers and cant find anything-anybody have ideas where I can look on my papers?
Did you refinance or did loan modification or just bought a house? You can probably find it in the settlement paper and they may have charged you closing costs and other fees. Look for your title company papers, it's in the first 3 pages. The lenders have their own title company and the homeonwer sign their loan documents through the title company. The title company gives a lot of papers to sign about an inch thick without giving us time to read it. While the homeowners are signing the loan documents they have already set aside an unsigned copies of the loan documents that we have signed for us to keep. They get the signed documents, we get the unsigned documents, I think they do that to save time by giving us an unsigned documets. But as a customer, we can demand to make copies of the signed documents and refuse the ones they have prepared ahead of time that is not signed by them or us.

God bless and take care.
 

Social Apocalypse

LoanSafe Member
Mar 17, 2009
693
12
18
Washington State
Mr. M;
Regarding concurrent loans made by the same lender: We did that with an 80/20. I know that was legal.

My questions:
TILA Disc on 2nd mortgage was $0 due at closing with finance charges of $1455. When you multiply the payment amount over the amortization shed, it comes out that we financed the closing costs over the life of the loan.

On the FIRST Hud1: they listed the proceeds from the SECOND mortgage as $84545 (which is the loan amount minus the above finance charges.) Is this NOT a violation? Am I not paying my closing costs on my 2nd loan TWICE??? I am having a hard time getting my attorney to understand that they hit me TWICE with the finance charges on the SECOND. If they were financed into the loan, then I should have gotten the entire 86000 transfered to the first, right? Or am I losing it?

Thanks again, you are always so helpful.
 

UtahMatters

LoanSafe Member
Sep 14, 2009
8
0
0
I have a lot of people coming to my organization trying to figure out what to do to get their lenders to work with them on modifications, short sales, etc...

Many of them ask me about a loan audit. When should someone have a loan audit done?

And WHO should they have do it for them?
 

faith

LoanSafe Member
Feb 1, 2008
973
9
0
California
I have a lot of people coming to my organization trying to figure out what to do to get their lenders to work with them on modifications, short sales, etc...
Many of them ask me about a loan audit. When should someone have a loan audit done?

And WHO should they have do it for them?
UtahMatters,

Hello and welcome to this forum.

A loan audit is a way to know if your loan contains violations that you can use against your lender or servicers. Consumer fraud laws, including requirements that lenders disclose the terms of a loan and borrowers’ cancellation rights, have been important tools for attorneys fighting predatory lenders.

Federal statutes require pre-closing disclosure of estimated loan terms, pre-closing disclosure of actual loan terms for high-rate and high-fee €mortgage loans, and notice when changes are made from the terms applied for by the borrower. State statutes and common law prohibit fraud, deceit, and misrepresentation in loan transactions.

The Truth in Lending Act (TILA) sets out detailed disclosure requirements that govern virtually all consumer credit transactions, with the goal of promoting informed consumer choice. The Real Estate Settlement Practices Act (RESPA)6 dictates procedures and forms for residential real estate closings to make clear to borrowers the true costs of buying and refinancing. Complementary provisions of TILA and RESPA require lenders to provide ‘‘good faith estimates’’ of both loan terms and costs early in the mortgage process.

TILA requires a good faith estimate of its required disclosures, including annual percentage rate, finance charges, payments schedule, and more, also within three business days of submission of a mortgage loan application. However, the requirement applies only to purchase money mortgages. Refinances, where many of the worst practices appear, are not covered.
<O:p
How do you know if you are a victim of predatory lenders? You need to check your loan documents and check the documents yourself or have a Mortgage Loan Audit performed by legal experts who has expertise in Real Estate . The audit is basically an extensive and thorough examination of your loan documents that you signed when you first got your mortgage loan.

These legal experts examine your loan documents for violations of State and Federal laws. Once your audit is complete, they present to you a written report, outlining all the violations, if any. The costs varies from $1000 to $3000 so you need to ask the lawyer how much they charge. You also need to get a referral or check the lawyers license at State BAR Association to make sure that the lawyer is license to practice law and has no complaint filed against him.

There are some lawyers in this forum, so you probably need to ask them about your concern about loan audit etc. Click the ask the attorney section in this forum, here's the link.

Loan Modification Forum - LoanSafe.org - Powered by vBulletin

If you believe that there’s TILA violations in your loan YOU MUST KNOW WHAT VIOLATIONS WHERE PERFORMED BY THE LENDER. This maybe the key to obtaining a favorable outcome during the Loan Modification process.

As far as Short Sale, the homeowner needs to list the home with a Real Estate Agent within 60-90 days, missed payments about 60-90 days. If the homeowner can show that they are struggling to make payments or are facing some other type of hardship such as a divorce, tenant moving, job transfer, medical emergency, decrease in pay, etc., then a bank will seriously consider approving a short sale.

She must have a buyer with an offer within 85% to 90% of the fair market value of the house, check www.zillow.com or www.Cyberhomes.com to check the recent sold homes to get an idea how much the homes in your area got sold for. She needs to give a letter of authorization to the lender allowing the real estate agent to talk to the lender. The agent submits a Short Sale package to the lender, HUD1 form, listing price, contract, letter of authorization to the lender, buyer’s offer, preapproval letter from the buyer’s Bank.

The link below will give you an idea about Short Sale. Loan Modification guidelines and QWR: http://www.loansafe.org/forum/short-sale-outpost/

http://www.loansafe.org/forum/short-sale-outpost/14207-national-city-short-sale-help.html

http://www.ababj.com/briefing/scare-mail-beware-of-qwr-s.html

https://www.hmpadmin.com/portal/programs/hamp.html<O:p></O:p>
<O:p

http://www.treas.gov/press/releases/...guidelines.pdf<O:p></O:p>
<O:p

If you don’t want to have the Mortgage Loan Audit done, you can write a financial hardship to the lender and be honest to them about your situation that the homeowner can not afford to make the monthly mortgage.

New guidelines for loan modification
Behind on Mortgage Payments
Has a legitimate hardship
Reduced income
Pay cut at work
Reduced hours
New job (Less Pay)
Loss of employment
On disability / worker's comp
Divorce / Separation
Excessive medical bills
Death of Household Provider
Failed Business

The client must demonstrate the inability to meet current financial obligations in order to qualify for Loan Modification. Simply wanting a modification does not qualify a homeowner.



This is not a legal advice but for your information only. God bless and take care. </O:p
 

exhausted3

LoanSafe Member
Mar 5, 2011
127
0
0
My loan servicer is GMAC...same people who set up HAMP I am told...don't trust the local representative I was told to use for help with legal issues...

Feeling concerned about NACA as well as time goes on....have heard this is nothing but a scam as well...ANYBODY have any thoughts on this organization?
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
My loan servicer is GMAC...same people who set up HAMP I am told...don't trust the local representative I was told to use for help with legal issues...

Feeling concerned about NACA as well as time goes on....have heard this is nothing but a scam as well...ANYBODY have any thoughts on this organization?
exhausted3
Here are my opinions of NACA. I believe NACA's goals and mission statement are commendable. NACA and Bruce Marks are doing a service to the homeowner trying to get a loan mod. NACA became known due to its well
 

JRFlyer

LoanSafe Member
Mar 26, 2013
3
0
0
I am new to this forum but believe I am posting in the correct place. I refinanced my first mortage under the HARP program to lower my interest rate in July of 2012. I had a second with First American Bank and owe about $43K on the second. The second mortage had a 5 year limit and came due in February. The current home value is $330,000 and my first is $325,000. This means the second mortgage is unsecured. I contacted the bank in an attempt to refiance or extend the current 2nd. They are willing to go along but at an interest rate of 7.5%. This is unacceptable and I feel they are taking advanatge. The current second rate is at 5% and I was willing to sign up for this moving forward. I have never missed a payment on anything but was strongly considering walking away from the second. To make matters more interesting First American is not the originator of the second loan. it was held by a local bank that was taken over by the FDIC.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
The current home value is $330,000 and my first is $325,000. This means the second mortgage is unsecured. I contacted the bank in an attempt to refiance or extend the current 2nd. They are willing to go along but at an interest rate of 7.5%. This is unacceptable and I feel they are taking advanatge. The current second rate is at 5% and I was willing to sign up for this moving forward. I have never missed a payment on anything but was strongly considering walking away from the second. To make matters more interesting First American is not the originator of the second loan. it was held by a local bank that was taken over by the FDIC.
Welcome and thanks for joining the forum JRFlyer.

Since your 2nd mortgage is almost completely underwater you seem to be in a perfect position to eventually settle your 2nd mortgage for pennies on the dollar. The 2nd mortgage holder is in no position to pursue foreclosure if you do stop payments and I would recommend following the http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd.html thread. We have many other members here who have successfully settled their 2nd mortgage for as little as 5-20 percent of the balance..

http://www.loansafe.org/forum/debt-settlement/40564-success-stories-settling-2nds.html
 

JRFlyer

LoanSafe Member
Mar 26, 2013
3
0
0
Welcome and thanks for joining the forum JRFlyer.

Since your 2nd mortgage is almost completely underwater you seem to be in a perfect position to eventually settle your 2nd mortgage for pennies on the dollar. The 2nd mortgage holder is in no position to pursue foreclosure if you do stop payments and I would recommend following the http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd.html thread. We have many other members here who have successfully settled their 2nd mortgage for as little as 5-20 percent of the balance..

http://www.loansafe.org/forum/debt-settlement/40564-success-stories-settling-2nds.html
Thanks for the quick response. Currently I have great credit, I guess the question becomes is walking away or settling worth the downside to my credit. I guess that's the part I don't understand.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Thanks for the quick response. Currently I have great credit, I guess the question becomes is walking away or settling worth the downside to my credit. I guess that's the part I don't understand.
Actually you will not have to walk away from the home if you default on your 2nd mortgage as long as your 1st mortgage is current. However, defaulting on even one lien can have a big impact on your credit score and after all is said and done you may experience a 100-150 point hit. What state are you located in?
 

JRFlyer

LoanSafe Member
Mar 26, 2013
3
0
0
Actually you will not have to walk away from the home if you default on your 2nd mortgage as long as your 1st mortgage is current. However, defaulting on even one lien can have a big impact on your credit score and after all is said and done you may experience a 100-150 point hit. What state are you located in?
I am located in Illinois and my current credit score is 740. I understand keeping the payments on the first will keep the house. I have no intention of walking from the propoerty, just trying to understand all the options. If I was to settle with the bank 6 months to a year from now for something less than the full loan amount on the 2nd. would my score still be impacted? The tough thing now is that the bank has already put the existing balnce on my report with a February due date so I guess the bottom line is that my credit is already effected. I owe $43,000 on the second and am completely under water for that amount.

My plan is to stay in the house another 10 years. What options does the bank have? Could they put a lien on the house and collect the principal 10 years from now? 10 years plus interest would be a fairly large number. I could also continue to pay it down even though it's past due. The current rate is 5% and if they would honor that moving forward and just restructure the due date I would be OK with it.

Thanks for all the help.