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Last Updated: Feb 16th, 2009 - 10:01:04
Homeowner Protection From Predatory Loans
By Rachel Friedman
Sep 2, 2008, 00:02 PST
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“Distressed homeowners already have plenty of legal firepower on their side and it was simply a matter of time before they got mad enough to go on the offensive against their mortgage companies for setting them up to fail," says investigative journalist Benjamin Dover, creator of a new consumer-friendly website, www.VoidMyMortgage.com.
He says that four federal laws that have been around for decades give homeowners extraordinary negotiating power and leverage against mortgage companies suspected of engaging in predatory lending practices. “The Fair Housing, Truth In Lending, Equal Credit Opportunity and Real Estate Settlement Practices Acts will level the playing field for millions of American victims.”
The number of “prime mortgage” foreclosures is more than double what it was a year ago, up from 51,000 in July 2007. He thinks it’s going to get a lot worse before it gets better, and offers a solution for homeowners who think they’re trapped in a mortgage.
Distressed homeowners should analyze their situations and get aggressive early in the game, long before their payments escalate out of sight and become impossible to make. Here are his Top 5 Red Flag Warning Signs that indicate you could be the victim of predatory lending and as a result, in an illegal loan:
- Your loan was an Adjustable Rate Mortgage, or an "ARM".
- Your monthly loan payment has increased more than $200 in the past year – or – if your monthly payment will increase by more than $200 in the next six months.
- If your loan has a pre-payment penalty longer than three years.
- If your home was originally appraised for a higher value than homes were selling for in your neighborhood.
- Or, if your Realtor or title company steered you to a specific mortgage company.
If you answered 'yes' to two or more of these questions, Dover says you may have a predatory lending case against some or all of the players who financed your financial nightmare.
Homeowners who are being contacted by their mortgage company about re-writing their loans need to be extremely skeptical.
“Before you jump on offers to reduce your principal balance and re-write your loan, consider who put you in the financial mess you’re in in the first place. You’re not really going to trust them to give you the best possible deal and rewrite your loan, are you?”
VoidMyMortgage.com has retained Dr. Gary Lacefield, one of the nation’s leading experts to handle mortgage audits for distressed homeowners. A former enforcer for the Department of Housing & Urban Development (HUD). Their plan to save the American dream is simple. “Our goal is to re-write or “recast” these illegal loans. “We want to help keep people in their homes,” says Dover.
Please note: ClassBrain does not endorse this site or their practices. We feel that the information on this site may have value, and may be helpful when investigating alternatives to losing a home from a bad mortgage. As always, please have an attorney who specializes in real estate review any contracts before signing.
© Copyright 2008 by Classbrain.com
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