I want out, help!!!!!
I am a victim of a preditory lender who shall remain nameless. It wasn't untill I got interested in REI and started doing research that I realized just how bad they screwed me. My wife and I were young, first time home owners and we didn't know any better. We needed a little cash to do a few home improvements. We knew that we had about 10k in equity but wasn't sure how to go about getting it. I received one of the "NEED CASH NOW?" letters in the mail and gave them a call. Anyway, to make a long story short, we got our home imrovements done but at a remarkable cost. I can't even type in the percentage that I'm paying because just the site of it might make me loose my lunch! I will tell you this, my mortgage payment is $1059 on a $89k house. "NO TAXES, NO INSURANCE INCLUDED!!!!". You do the math. I finally just came to grips with the fact that we made a bad decision and will have to live with it, but now that we are expecting our third child we need more space and want to move. We can't sell because we owe more than the house is worth and I think renting it out might be too risky. So, that's that. If anyone has a suggestion on how I might be able to get out of this house, please let me know.
Thanks
I am curious. Did you get a 2nd mortgage or did you refinance the entire house with a new 1st? If a 2nd how much was the loan for?
Predatory Lending is illegal. Let me ask you a couple of key questions:
Did you sign disclosures with the interest rate and costs (ie GFE and TIL)?
Did your interest rate increase at the closing?
Where you charged more than 8% of the loan in up front fees?
The answers to these will determine if you are a victim of predatory lending or buyer's remorse...
Above Equity loans are not even offered to borrowers with bad credit because they are, basically, unsecured loans. Due to the increased risk factor, the lender charges high rates and high fees. MOST banks don't offer this type of loan any longer because of it's history of high default rates. I still do approximately one every two months. As long as everybody knows, at the beginning, that it is "what it is". Sometimes it makes sense for some people at some time in their lives.
hope this helps,
clear2close
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Can you consolidate and refinance? I know that's the obvious and simple answer, but rates aren't going to go any lower. Closing costs bite, but it sounds like a better option.
Not without an Above Equity loan or cash to pay the balance down under 100% of the value of the property.
clear2close
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he only disclosure I have in my records of singing is for some credit life insurance that cost $7969.23. The first thin I did when I started investigating the loan was to cancel this policy. They would not deduct from the balance like I requested but the did send me a check. I did refinanced the whole house. What all should be included in this 8%?
ya know, it's possible that your lender broke the law, sometimes it happens. But, most of the time the extensive research ends with, "I don't remember signing that". If that is the case, you probably just learned the important lesson, "Read every word before you sign".
I am in NO WAY condoning sneaky sales tactics, but this is a very complicated business and when you hire a broker or trust a lender rep. to handle it, there's some risk. Risk that they will do exactly what you told them to do, not what you meant. IE.. "Get it approved" or "I need it, just get it done" or "just keep my payment below $x/month" or "I want no points"(not understanding that there are several ways to make LEGAL money as the lender).
To check up on your lender, I would start at this site:
http://www.mbaa.org/resources/predlend/
hope this helps,
clear2close
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