In the past, no one really sued anyone over their mortgage. Hell, if you had a problem with your loan, you just refinanced right out of the bad loan and into a new one. No harm, no foul. Now, the home loan tides have changed and the tsunami of mortgage lawsuits have begun.
Federal laws like the Truth in Lending Act(TILA), The Home Ownership Equity Protection Act (HOEPA) the Real Estate and Settlement Procedures Act (RESPA) are now being used by lawyers and homeowners to fight back against their lenders and servicers. These laws are also being used by smart lawyers and homeowners in the foreclosure process as an effective foreclosure defense tool and with great results.
Something as simple has reviewing your loan documents to identify violations of these laws can help homeowners in their quest to save their homes from foreclosure. If these viloations are found on your mortgage, you may be entitled to significant monetary damages from your lender.
Often, these damages can run in the tens of thousands of dollars. I personally have seen damages totalling upwards of $125,000 awarded to a homeowner who actually was foreclosed on and their home was sold at auction. This homeowner received her home back, damages, attorneys fees and a new, good loan.
Any consumer harmed by a violation of Truth in Lending Act may bring a civil suit against the lender. Generally, TILA provides for the following civil remedies:
(1) actual damages;
(2) damages twice the amount of any finance charge in connection with the transaction;
(3) damages not less than $200 or greater than $2,000; and
(4) Reasonable Attorney Fees. 15 U.S.C. § 1640(a).
I can only imagine the amount of homeowners who go into foreclosure, that could have been saved by these laws.
One of the most effective and straightforward way to obtain rescission is when the borrower has evidence that the lender did not comply with TILA’s “Notice of Right to Cancel” or the “3 Day Right to Cancel” provision. That is the law that seems to be violated the most by lenders.
The “Notice of Right to Cancel” is one of the most vital disclosure documents which must be provided to the borrower at closing. The Notice discloses all the pertinent information the borrower needs to unwind or cancel the loan transaction should the borrower be unable to consummate the loan transaction. It can be thought of as a federal “cooling off period”. TILA mandates that all lenders confirm that the Right to Cancel notice is properly provided to the borrower with all of the essential information the borrower needs to exercise the right to cancel.
3 day right to cancel:
- Each borrower must receive two copies of the Notice of Right to Cancel at closing.
- The notice must clearly inform the consumer of their right to rescind the transaction and must also explain how to exercise the right.
- The notice must also disclose the exact date on which the rescission period expires. Congress felt so strongly when they enacted TILA, that even a minor technical violation with the Notice will provide the borrower an additional 3 years within which to exercise the right to cancel the predatory loan.
Often the important duty of filling out the vital information on the Right to Cancel notice is left to the notary, the lender has an obligation to review the final loan documents to ensure that the borrower was provided with accurate and lawful information.
In the hastiness to make as many loans as possible to as many people as possible, many times lenders failed to review the loan documents. If the lender failed to ensure that the borrower was provided with an effective notice, the borrower then has the powerful right to cancel (rescind) the loan for up to 3 years after the closing.
This really evens the playing field for borrowers, since rescission can not be obtained from the dishonest mortgage broker whose misrepresentations were made verbally and were not recorded in any documents.
If a borrower was not given a copy of the loan documents at the signing, then the borrower was never even provided with a Right to Cancel notice and that borrower can cancel their loan up to 3 years from when they last refinanced.
I feel that any homeowner who is facing foreclosure or an interest rate adjustment should look through their loan documents to see if they were provided with a Notice of Right to Cancel and if so, look to see if the dates were filled in correctly to disclose the three day right to cancel. If the borrower was provided with a notice that did not contain the correct expiration date for rescission, that borrower is likely the victim of a predatory loan and they may sue their lender under TILA .
A defective Notice of Right to Cancel is by no means the only way to prove a predatory lending case, but it is definitely one that provides the client with the best defense. Rescission often allows the borrower to keep their home and owe less on it because of the violations of Federal Law which has been committed.
Any homeowner who feels they have been the victim of predatory lending tactics should contact an attorney who is experienced in mortgage law to discuss their legal rights and remedies.
Get Free Foreclosure Information.
{ 61 comments… read them below or add one }
So the borrower doesn’t owe the money and gets the house free?
No, they can rescind the original loan but must get another one – “Rescission often allows the borrower to keep their home and owe less on it because of the violations of Federal Law which has been committed.”
Problem is that given the current climate, the fact that quite often these “predatory” loans were the only ones they qualified for (due to lousy credit), and finally, these products are no longer available, their chances of getting another loan are slim or next to none. It’s kind of a double-edged sword.
It amazes me how everyone points the finger at lenders and mortgage brokers. To say you were “scammed, duped, swindled” is a great excuse as to why your not paying your mortgage. It’s hilarious!
You were all quick to sign on the dotted line and take the mortgage, using your house as a credit card to live the lifestyle you cannot afford. Did you think that being greedy and irresponsible wouldn’t blow up in your face?
You deserve to lose your house for being so reckless ane ignorant!
The writer of this article is a complete moron. I completely agree with Anne. Everyone wants to blame everyone else, but themselves. Take responsibility for your actions. You signed the paperwork, now live with the consequences. Your house isn’t the checkbook that you think it is. There is plenty of blame to go around. And everyone from lenders, brokers, wall street, and borrowers (yes borrowers) had their hand in the cookie jar. Unfortunately, it blew up.
My question to the State of New York and all these other state and local municipalities is, \’e2\’80\’9cWhen are you \’e2\’80\’9creally\’e2\’80\’9d going to get serious and \’e2\’80\’9cprotect\’e2\’80\’9d the people for which you serve.\’e2\’80\’9d
That is an unbelievable statement above. Always looking for the government to bail you out for the mess that you got yourself in.
So….
Where do you plan to find all of these ” ‘independent’ third parties that have no interest in these transactions or mortgages” that know enough about the industry to give “real and honest” advice? There aren’t people out there outside the industry that know enough to help. Anyone that knows enough to really help are still in the business because they are professionals and know what they are doing. All the scammers and snakes have already died on the vine.
Jeez, gimme a break!
So, if the borrower can’t afford a new loan, how do they use and benefit from a TILA-based lawsuit? (Won’t they still lose their house and wreck their credit? Or could they lose their house and NOT wreck their credit, if the judge decrees that?)
Moe,
I think you need a better understanding of who is really to blame for the credit meltdown which is too often referred to as the subprime meltdown.
While there is a considerable amount of blame that could be placed on borrowers, realtors and mortgage originators, the MOST blame goes to those that enabled all of these players to do “bad” things.
The MOST blame clearly belongs to the securitization side of the mortgage industry as well as the ratings agencies.
Lenders do not lend unless the paper can be securitized. The securitization industry and the ratings agencies committed the fraud that implicated the rest of the players.
By fraudulently labeling mortgage backed securities as AAA investments, when in fact they were considerably less credit worthy than that, the securitizers allowed the proliferation of sub investment grade securities to be spread around the world. This was done with the blessing of the ratings agencies who should have blown the whistle on the faux credit quality of the mortgage backed securities.
Not only did these players and their actions spread the bad paper globally like a virus, the money generated by the securitization process enabled and even forced the lenders and originators to make bad loans.
Had the securitizers been caught earlier for their misdeeds, like after the first pool of mis labeled mortgages were sold, the loan programs in question would have never appeared on rate sheets and product matrices of originators across the nation.
Thus, borrowers, realtors and originators would not have had the means to create the situation we are now faced with.
To understand this premise, you need to realize that lenders do not lend if the loans cannot be securitized. The bad loans would have never been securitized to the extent they did, without the fraudulent representation of their credit quality. Had the ratings agencies been doing their job, they would have caught the mis labeled securities, blown the whistle and stopped the cascading events in their tracks. With very or little damage done.
As an originator, I draw a parallel among the mortgage origination industry and illegal immigration.
Once businesses started hiring illegal labor, allowing these businesses to undercut their competition, it was only a matter of time before the competition also hired illegal labor. They had to in order to survive. Without the regulatory mechanisms kicking in, illegal labor spread to all area of business.
It’s similar in the origination industry. Once the products hit our rate sheets and matrices, if we didn’t do a certain type of loan, the borrower could get that loan from our competition. So even if you didn’t believe in the types of loans being originated, you had to originate or go out of business. There is an old saying in the business. “Would you lend them your money”? There were many times in the last 7 or 8 years when I said, “I’m glad it’s not our money we’re lending”.
The future mal-performance of the subprime and alt a paper was plain for everyone to see. But no one could buck the trend as long as Wall Street kept being the ultimate funder on these programs. Throwing trillions of dollars at originators, realtors and buyers to get in trouble with.
Having said all of this, yes it makes sense for the origination part of the industry to assist in the clean up of the credit debacle. I am doing this on a small and independent basis. I’m a professional and want to clean up this mess before the industry is no more. Which would mean the economy is no more.
The people that point the finger exclusively at borrowers have no clue how the financial system in the US works. The defaulting homeowners are taking responsibility for their loans in that their credit is ruined for 2-10 yrs. depending on what they do with their home. Even to get any modification most lenders/banks want you to be in default(90 days behind) so they can be in the driver’s seat. If a homeowner gets foreclosed on, files bankruptcy etc. one would have to be completely ignorant to state they get off scott free.
The financial free enterprise system ran wild the past 5 yrs. and now ALL US taxpayers will be paying the price for a very long time. When this “stimulous package” gets signed it will allow banks and lenders to be paid back by you the American people if loans default (gov’t insured). Conforming limit will be raised to $729,500….. do you think the rate for conforming (normally $417,000) will stay the same or go up. What you really need to be looking at is what the gov’t. is attaching to each so-called “stimulous” or “bailout”. They’re all written to help the investors/lenders not the regular joe.
To all of the people who are in danger of losing your house because of the loan you signed…I say, IGNORANCE IS NO EXCUSE…Its not like it would be legal for your payment to just double with no paperwork or warning. You signed an ARM..that means ADJUSTBALE RATE MORTGAGE.
Just ask the IRS…CAVEAT EMPTOR……you signed the loan now make your payments or sell your house. It is truly that simple.
When you signed your paperwork I guarantee you that you signed at least four separate documents that described EXACTLY how your payment was going to adjust. Now you cant make the new payment and it is somehow the lender’s fault? That is ridiculous. As a matter of fact if there was any fraud it was more than likely on the part of the borrower trying like heck to get into a house that his brother-in-law would be jealous of. This is symptomatic of corroding social values in America and yeah I am sure people on the inside took advantage of you but still…you signed the loan now make the payments.
I have seen one or two too many people on the news crying about how a broker or a lender lied without them knowing it…whatever, If you make $15 dollars an hour you should be well aware that youy cannot afford a half a million dollar home. It is simple math…this is truly silly, if you could barely afford your rent on a one bedroom apartment then what makes you think you can buy a 3500 square foot home.
What this is about is a bunch of people being stupid and now wanting the Government to step in and save their behinds.
My rate adjusted and I lost my job at the same time. You know what I did? I sold the house probably for seven or eight percent less than what it was worth a year ago. Tough luck….I took a gamble and it didnt work out. I didnt stand around shouting at everyone that would listen, namely news reporters, about how some mortgage broker or some mortgage lender screwed me. I signed an ARM and I lived and died with the consequences.
Of course these responses are coming from the mortgage industry veterans. Wow, what a surprise, yawn………..
I don’t think most of you all really got the point and that is completely understandable because your thoughts and actions in regards to the “mortgage circus” are influenced by your chosen profession. It doesn’t take a degree in sociology to figure that one out.
Mortgage Guy, you are one of the few people that I would allow to look at my mothers mortgage and let her know what she can do to avoid foreclosure.
The rest of the wolves in sheeps clothing can continue working with the state and local municipalities.
I understand that lenders and the banking industry in general is a crucial element in the clean up process. The crucial elements and resources that they should bring to the table are “MONEY” and “MORE STAFF” to clean up the mess in which they helped create.
Moe, I usually agree w/ you 110% but here I’m going to take a little side step.
Technically, it would be perfect for the lenders who played a large part in creating this mess to clean it up.
Haven’t you ever seen the prisoners on the highway cleaning up the debris?
What about when my kids break something or make a mess, I most certainly (and with great delight) tell them that they BETTER FIX IT and CLEAN IT UP or else.
It’s a learning lesson for them. You broke it, You Bought it 101
It’s like Exxon Valdez Oil Spill. It’s truly the most healing experience for both parties, if and let me say that word again: IF it’s done with integrity.
The murderer, IF — IF he is able, can look into the eyes of his victims and understand the damage that he’s done. He/she can face his victims parents and come to the realization that he’d devestated the lives of others.
The victim, IF she/he is able, other the victims family can reach deep inside of themselves and offer forgiveness, because holding onto resentment and anger is like taking poison and wishing the other person will die.
BUT not everyone is ABLE to do this. Not everyone is strong enough, and has enough inside to sustain them.
But that’s not even the case here, so I’m stepping over to agree with you again (as usual
)
It’s not about being unable or not being strong enough, the lenders their government buddies are not at all being honest or acting w/ integrity, AS USUAL.
They’ve got their own little sneaky agenda fully backing their secret intentions which will only truly benefit themselves and not the common man.
By their fruits we continually clearly get to know them. They keep SAYING they are doing things that they are CLEARLY NOT DOING.
To say that we should blame the securitization industry is laughable because it is still the banks who make the final decision to lend. What must be looked at and considered is WHY did all of these players do what they did?
WHY in the world did all of them work so seemlessly together to perpetrate a massive fraud on the American people that has sent us head long into a recession?
I say it’s because all of these players were in BED TOGETHER. They were all looking out for each other because it made them SHIT loads of money.
If the borrower made a couple of bucks in the process it didn’t mean a damn thing to them because they knew in the end most borrowers would be screwed and they’d line their pockets with what was left after they were finished with them.
And to all the Mirror Smokers and Clone — oops I mean Mortgage Brokers and Loan Officers, blah, blah, gagggg, swoooooon, arggghhh, blech, YAAAAAAWWWWNNNNNN WWWWWWHAAAAATTTTTEVVVVER!!!!
Don’t you guys ever get tired of whiiiinnning?
Remember you don’t see peoples are they are — you see others as YOU ARE!!!
If you see borrowers as greedy, taking easy street opportunists who are now whining then take a look in the mirror — that’s who you’re describing.
I know it’s hard to swallow so I’m fully expecting you guys to spit it back out as you accuse and accuse and attacks some more.
Typical.
I’d like to know where in the “blame the homeowner” scenario do the lenders and their cronies (YOU) become accountable for the mess they all worked together to create?
“My question to the State of New York and all these other state and local municipalities is, \’e2\’80\’9cWhen are you \’e2\’80\’9creally\’e2\’80\’9d going to get serious and \’e2\’80\’9cprotect\’e2\’80\’9d the people for which you serve.\’e2\’80\’9d” ~ Moe
“That is an unbelievable statement above. Always looking for the government to bail you out for the mess that you got yourself in.” ~ Joe
Ha, ha, ha, HHHHAAAAA — heeeeee, heeee
Let me ask you Einsteins something: What do you think the JOB of the government is?
The job of the government is to operate in the people’s best interest otherwise WHAT IN THE HELL are we paying them for?
“The fundamental purpose of government is the maintenance of basic security and public order \’e2\’80\rdblquote without which individuals cannot attempt to find happiness. People in a community create and submit to government for the purpose of establishing for themselves, safety and public order.”
With all the sharks, predators and snakes out there, as is EVIDENCED BY THE MORTGAGE industry can you imagine where we’d be without GOVERNMENT.
At least the the government’s support of big business and tolerance of ultimate greed kept Wall Street from feeding on us until there was nothing left.
As it is, we’ve been hooked up to life support on one end, and a blood bank on the other, as the vampires go to town on our @$$es!!!
Well, first of all, the state isn’t there to protect anyone right now (try suing the police department if they “fail” in their “duty” to “protect” your life, liberty and property, such as if your car is stolen or your are mugged). So they’re not going to suddenly, magically, start “protecting” homeowners from bad loans unless it serves the bureaucrats’ self-interest of keeping property taxes high enough to maintain their corruption. The managers of the local offices of these subprime loan sharks are sitting on election boards and donating to state and local campaigns to keep their preferred candidates in as much power as possible.
Moving up a level, interest rates are controlled at the federal level by the Federal Reserve, which is owned primarily by the large banks which are now suffering the most and need the Fed to bail them out repeatedly. They brought rates as low as possible for years to induce more buyers, then when rates rose and defaults occurred in droves, the banks made out by taking over large sections of the country’s real estate, and getting free money care of the government.
So, yes, we should have a third party independent of both government and banks to provide some help, if homeowners want it. But I wouldn’t trust the mortgage companies or the government to provide any “independence” to people.
JacMac wrote: “To say that we should blame the securitization industry is laughable because it is still the banks who make the final decision to lend.”
With all due respect JacMac, lenders do not make the final decision to lend. All lending decisions are based upon the ability to securitize the paper. Lenders don’t lend unless the loan can be securitized. Thus it is the securitizer who has the last say and is the second to ultimate funder. The ultimate funder is the buyer of the mortgage backed security.
What the securitizers did was create a fraudulent product that sold like illegal drugs. They sold trillions of dollars of these securities because they had an uncharacteristically high yield for a AAA rated investment.
Because the bad paper was easily securitized, due to its fraudulent rating, the securitizers encouraged the origination of the toxic paper.
If a loan program isn’t on my rate sheet or product matrix, I cannot sell it. It shows up on my rate sheet because the loan can be sold off as part of an investment pool. The matrix for qualification and classification of the loan is set by the securitizer not the lender. Lenders are not the end lender in 99% of originations. The investor who buys the mortgage backed investment is truly the end lender. Everyone else is in essence a middleman. It’s highly unlikely that the end lender, the investor, would have bought this paper having known it’s true risk characteristics.
It is indeed the securitizers, due diligence firms/departments and credit rating agencies who bear the most fault for the situation we are in. It was their fraud that allowed the bad loans to happen. It was their actions, spreading toxic paper around the globe through fraud, that caused the most damage to the most people.
There is no way a relatively small number of home buyers, unscrupulous realtors and originators can destroy the US debt markets and thrust the economy into recession. You are giving them too much “credit” and power.
Mortgage Guy, I still believe that the securitization industry you’re speaking of are close cousins to the lending industry, and they are looking out for each other’s interest.
“There is no way a relatively small number of home buyers, unscrupulous realtors and originators can destroy the US debt markets and thrust the economy into recession. You are giving them too much \’e2\’80\’9ccredit\’e2\’80\’9d and power.” ~Mortgage Guy
No, that’s it — I’m not saying that at all. We actually agree. I think everyone is working together towards common goal, greed. I don’t think we’ll see the reality of whatever secret plan is going on until much further ahead in the future. What would be the purpose of having done this, as you say, destroying the U.S. debt markets and thrusting the economy into recession — it must have been for very good reason, don’t you think?
I always think it is to eventually eliminate the middle class and create a society of just extremely rich and very poor, but that’s my conspiracy theory.
Interesting ideas floating around here, and I can’t let things go without throwing in my two cents. Make sure you read para 3.
Firstly for Moe. Your post belittles the idea of lenders taking a part in solving this problem, yet isn’t that pretty much what a loan work out is? Have you been giving people bad advice by encouraging them to contact their lenders and push hard for a modification? I’m thinking you noticed this inconsistency yourself based upon your last paragraph in comment #10. I would have made this post more along the lines of “the lenders are finally stepping up their efforts, but don’t trust them the way you did the first time; get outside help.”
What is happening is the lenders are looking for good candidates for loan modifications, ie. people that will be able to pay for the next few years on loans that they are holding. They won’t spend much time on lost causes. But they will be only looking at what is in their best interests, which may or may not coincide with the borrowers’. You’ll never here them say “We can modify your loan to these terms, but it’s probably in your best interest to walk away.” If they can convince people to keep paying, they’ll do it because it is in their best interest.
So here is how you play it. Don’t be a desperate borrower. While you are on the phone with the lender, have one foot outside the door and a rental all picked out. If they offer a 5%, 30 year fixed, you counter offer. “I’m afraid at that rate I can’t justify staying in this house. A 4.5%, 30 year fixed with $25,000 forgiven would work. I’ll be putting the keys in the mail at the end of next week if you can’t accept that deal.”
Anne and Joe. Some borrowers were duped. Illegal type stuff. Other borrowers didn’t do their homework and are hurting for it. They certainly should have been more careful, especially considering the size of the decision they were making. Having said that, they still need to do what they can to improve their situation. Those that are playing the victim will get little sympathy from me, but those that are doing their best to use what they’ve learned to save their home or get out of their bad situation deserve respect and encouragement.
JacMac. I think you’re dead on with the idea of those who created the problem fixing it. Good Karma and all. Having said that, outside parties do have a role. Government should be closing loopholes. Non-profits should be helping the lost and confused. Borrowers should be consulting multiple sources of info when deciding what to do going forward. I don’t believe, however, that government should bail any player out since every player has some guilt.
I’ve gone on long enough. Cheers to all.
You are such a cliche….. blaming brokers and lenders is the easiest way to take the attention off the fact that YOU READ WHAT THE PAYMENT WAS ON CLOSING DAY, NOW YOU CAN’T AFFORD IT. Most of these loans are defaulting BEFORE THE ADJUSTMENT PERIOD YOU MONKEY! This means that they new what was going to be the monthly obligation and still signed just to take the cash! I have no sympathy for MOST of the homeowners out there. I agree that a portion of families might have been “swindled” by some bad apples, but this problem is far beyond those loan officers. Good borrowers that have the ability to pay are now walking away from there homes because the equity is dropping….THIS IS THE MAIN PROBLEM! Quit writing about stuff you dont know about you jackass!
I personally don’t blame the brokers, I place blame on the one’s who approved the loans..THE LENDERS. In the past 6 months, we were not given the option to “not be desperate.” IT is all about the almighty dollar. Countrywide made ALOT of money off my family, and would have continued to do so had they taken what was offered to them. Now, today, I see Countrywide is going to help some. What a joke. Too little, Too late for some of us.
If someone has ability to pay after an issue arises (Shit happens), then it is the lender’s responsibility to negotiate acceptable terms and stop the foreclosures.
Blame has been fixed. Brokers, appraisers and lenders are going to prison in copious quantities. It amazes me that these so-called “Professionals” think they have a defense.
Not to sound to condescending, but if everyone is going to point a finger over sub prime loans why not place it on ACORN and other advocate groups? They were the ones that pushed forward The Community Reinvestment Act of 1977 and Home Mortgage Disclosure Act, which advocated banks to lend to all of the community, and not those which actual money or good credit. The birth of subprime finds it’s roots here… since discrimination based on credit worthiness is enough to send up alarms to regulators .. For example, Look how the HMDA works.
Companies covered under HMDA are required to keep a Loan Application Register (LAR). Each time someone applies for a home mortgage at an institution covered by HMDA, the company is required to make a corresponding entry into the LAR, noting the following information.
* The loan amount
* The purpose of the loan (home purchase, home improvement, refinancing)
* The type of property involved (single-family, multifamily)
* The loan type (conventional loan, FHA loan, VA loan or a loan guaranteed by the Farmers Home Administration)
* The location (state, county, MSA and census tract) of the property
* The race of the borrower(s)
* The ethnicity (Hispanic or non-Hispanic) of the borrower(s)
* The gender of the borrower(s)
* Whether or not the loan was granted
* If the loan was denied, the reason why it was denied
* If the loan was denied, whether the interest rate charged was over a certain threshold
* If the loan was subsequently sold in the secondary market, the type of entity that purchased it
Every March reporting institutions are required to submit their LARs to the Federal Financial Institutions Examination Council (FFIEC), an interagency body empowered to administer HMDA.
HMDA data can be used to identify probable housing discrimination in various ways:
* If an institution turns down a disproportionate percentage of applications by certain races (e.g. African Americans), ethnicities (e.g. Hispanics) or genders (typically women) then there is reason to suspect that the institution may be discriminating against these classes of borrowers by unfairly denying them credit. Such discrimination is illegal in the United States.
* If an institution has a disproportionately low percentage of applications by certain races (e.g. African Americans), ethnicities (e.g. Hispanics) or genders (typically women) then there is reason to suspect that the institution may be discriminating against these classes of borrowers by unfairly discouraging them from applying for mortgage loans. Such discrimination is illegal in the United States.
* If an institution has a disproportionately low percentage of applications from certain areas, compared to areas immediately surrounding the area in question, then there is reason to suspect that the institution is engaging in redlining.
* If there is a disproportionate prevalence of high-interest loans to certain classes of borrowers (e.g., Hispanics or women) then there is a reason to suspect that the institution is engaging in price discrimination.
Failure to provide loans brings up calls of redlining, but provide the city loans and than you are stuck in a situation like Cleavland, where they scream reverse redlining for actual providing what they wanted… go figure.
Second, be careful in using the term fraud so loosely. I fail to see where:
1) an individual or an organization intentionally makes an untrue representation about an important fact or event;
2) the untrue representation is believed by the victim (the person or organization to whom the representation has been made);
3) the victim relies upon and acts upon the untrue representation;
4) the victim suffers loss of money and/or property as a result of relying upon and acting upon the untrue representation.
The point to take from this is, life is not fair. simple as that. “What as always made the state hell on earth has been precisely that man has tried to make it his heaven”
“If someone has ability to pay after an issue arises (Shit happens), then it is the lender\’e2\’80\’99s responsibility to negotiate acceptable terms and stop the foreclosures.”- Mom in Michigan
How is the lenders responsibility to renegotiate a contract based on the failure of a party to fulfill it’s contractual obligation? Think very carefully what you are advocating here… The main purpose of contracts is to enable performance to unfold over time without placing either party at the mercy of the other. Contracts do this by regulating the future and interpretative problems that are bound to arise mainly because the future is unpredictable. To renegotiate major elements of the contract based on one parties failure to either plan ahead, or simply live up to their obligation would undermine the very nature of contracts. Foreclosure is nothing more than the remedy provided to the lender to secure his interests in case of default of the underlining contract. They do not have to, and should not, give up or lose money on the deal simply because you do not want to pay. They are not the United Way, or the UN, they are a business whose model is based on lending you money. If you do not like it, than do not borrow.
I cannot imagine going into a restaurant, buying a meal, than telling the establishment that my economic condition has changed and therefore i demand a price adjustment on the meal to accommodate this.
Hey Jim, you are not understanding what I am saying….not a free ride but if someone can pay, then let them pay. Obviously you live in a fantasy land to think that something will not happen by accident to you and force you into a bad situation no matter how you prepare for it.
Only the perps are blaming the victims. Borrowers DID NOT know what they were getting into. They didn’t know prices were skyrocketing because of appraisal fraud. It has been proven by multiple investigations that false advertising lured borrowers into a falsely represented situation and that brokers consistenly altered the contracts after the borrower signed. Inflated appraisals, bait and switch, contracts that are designed to be impossible to read in less than 3 days, intense pressure by brokers to get the “deal” done using the rate lock ruse, and falsified application documents have been discovered repeatedly.
Congress held hearing after hearing of testimony by borrowers who consistently told the same story. It’s all out there, google it. Brokers are toast.
What are you talking about, altering contracts? do you have actual examples? I find this really hard to believe that such a practice would be routine, since a notary public should be on hand when the signatures are placed. But if they simply crossed out the numbers and wrote in pencil new ones than we should see numerous law suits in the judicial system.
As for the borrowers, honestly, for the biggest financial decision in most of these peoples lives you think they would have consulted a lawyer? but none the less, as an adult one must assume that they have complete facility over their choices. If they did not understand it, than why sign it? Is this how far we have sunk, that people are too stupid to even read contracts anymore. What is next, “sorry officer but i simply did not look at the traffic light when i blew through it, but do not hold me responsible for my action, it is those evil engineers fault.”
excluding all the personal opinions one has on the subject, take an object approach to it. If fraud did happen, than evidence of such is prevalent and prosecution should be commenced in these matters. As for the banks, what more can they honestly do? They do not retain ownership of the actual loan, and most of their tentative connection to the document is through a separate servicing agreement. With that they must act in the investors best interests, not that of the borrowers. There is only so much wiggle room that they have in these matters, and foreclosure is really the last thing most want to do. I do not see much of a solution that could be implemented? A freeze on rates, as some have suggested, cannot be done without their consent. IF our government tries something like this, than the WTO decision in light of Antigua’s complaint will look like a walk in the park.
“If someone has ability to pay after an issue arises (Shit happens), then it is the lender\’e2\’80\’99s responsibility to negotiate acceptable terms and stop the foreclosures.”
What planet has contracts that say “pay me until shit happens at which time I renegotiate more favorable terms for you.” I really want some of that koolaid and I am dumping my paid off house tomorrow so I can get me one of them “shit happens” contract on a brand new McMansion! WOW, I’m excited! Are they doing this for new cars too?
Mom in Michigan,
I’m going to respectfully disagree with your “shit happens theory.” Contracts and agreements are made between lenders and borrowers because “shit will happen” and it’s too much to waddle through and vindicate one side over another. When either side doesn’t honor their respective agreements, shit does and is happening, both to the borrower and as we see now, also to lender.
Don’t get it twisted, the only reason lenders are even considering helping now is because they are re-tooling themselves and their new product to roll them out to guess who, you and me, the same borrowers who are catching hell now. Other than that, they don’t really give a “shit”
Buy enough of using shit. The lender should participate but not all will. Why? Out of fairness, “everyone” involved should participate and won’t.
But on the subliminal level everyone already are participating one way or another. Because of the “contract” the lender is no more responsible to you than you to them. If you don’t want to honor your agreement, then be prepared for the consequences. Don’t expect anyone to change the rules to suit you. They have no legal reason to do that. But remember, they want your future business and oddly enough most of us will go back into that murky water and give it to them. Just be ready for what can happen. That’s all.
I only stress to everyone, that you arm yourself with the rules and know how of financing a home. If you are going to stiff the lender, then do your homework first. Know what happens good and bad when you do this and also be ready to accept the responsibility. If you are going to comply with the lender, do your homework. DO YOUR HOMEWORK.
Some lenders are going to play “ass hole” and hold fast to their position. Some will relent and help out. Remember folks, they don’t have to do this.
Well, they could have some of the balance owed knocked off due to fines levied against the lenders but if they can’t find new financing, they won’t get to keep the house for nothing. I think that the credit as it relates to this specific transaction is going to be okay, i.e. forgive those dings.
Chris, nice debate, I see your point also. I am not saying that the lender owes the borrower anything, except my point is if they fall behind and immediately contact the lender, then why cannot some type of agreement be arranged. This is not for the ones who just decide to stop paying. When I said “shit happens” I meant job loss, disability or your infant child having cancer.
And Proud Homeowner, why are you even on this site that is dedicated to people working in the industry, or going thru foreclosure. GO google and find yourself a site where your ignorant comments matter.
Mom in Michigan,
Yes, I agree with you on that. The thing is most people don’t realize that until it\’e2\’80\’99s too late. The other thing that happens is emotions kick in. Pride, embarrassment, trying to correct the problem without help. Some of these things exhaust time and when reality kicks in, it’s normally too late or very difficult for the lender to have any real concern to fixing the situation.
One of the things I tell my borrowers. In the event something happens, quickly call and make an arrangement. It’s much easier when you are down 30 days than 120+. I don’t advocate bailing on a lender, but if you have to or you see it coming, do it now. Don’t wait a year later. What borrowers now are faced with are decisions that impact them and their family and they must make the decision real fast.
Sit back and really access your issue. Get pass real quick, whose fault it is. It doesn’t matter. Really look at all of your options for the immediate and the long term and go with it. You have to make an emotional decision on a business deal, so keep it business.
The good thing about this industry is it will fix itself one way or the other. Borrowers have options and if that means renting, then fine. Rent. People who rent aren’t bad people. People who lost or are losing their homes aren’t bad either. Like you say, “shit happens.”
Credit rebuilds itself. Savings deplete and fatten back up. Lenders who tell you no, will tell you yes again. The world now knows how lenders will truely handle you. Protect yourself. Act accordingly.
Hey Jim,
“Not to sound to condescending, but if everyone is going to point a finger over sub prime loans why not place it on ACORN and other advocate groups? They were the ones that pushed forward The Community Reinvestment Act of 1977 and Home Mortgage Disclosure Act, which advocated banks to lend to all of the community, and not those which actual (had) money or good credit.”
Oh, you don’t sound condescending to me at all . . . you sound like a racist.
Are you suggesting the lenders could not have created a responsible lending product that could have afforded Hispanics and African-Americans the opportunity to own a home, rather than trap them in a doomed-to-fail situation where they were placed in homes that the lenders damn well knew they’d not be able to afford in the future . . .
Or are you just saying that they don’t deserve the opportunity to own a home, like everyone else?
Sub-prime, “good credit” — Americans really kill me. Please take a stroll down history and you will soon discover (if you have eyes to see) why economically, socially and financial Hispanics and African-Americans earn much less, have much less and have NEVER been afforded the same opportunities as their Caucasian counterparts.
The subprime issue is not one of color, except green. THe lenders didn’t give a Got Damn who they sold their toxic loans to — and like Moe has said often enough, these loans were sold. SOLD got it.
No one walked into the office and said, ”
Hey, can you give me a loan for an overpriced house with a low teaser rate that will not pay off my loan, but will in fact cause my principal balance to increase outraegously over the next two years, and oh, by the way, can you please lock me into the loan, so that I can’t refinance (which I won’t be able to anyway, ’cause the house aint worth what I’ve bought it for, and the principal balance has gone up to far. But most importantly, can you put a cap on the loan, so that the rate will go up wayyyy past what I can afford and I can be foreclosed on. That would really make me day! Thanks”
Proud Homeowner:
“What planet has contracts that say \’e2\’80\’9cpay me until shit happens at which time I renegotiate more favorable terms for you.\’e2\’80\’9d
Oh, that’s Planet Big Business. You mean you’ve never been? I hear it’s faaaaabulous! Why Enron had a big place there for a while, and hmmm, let’s see, WorldCom, Aldephi, there’s so many others!
They all filed B A N K R U P T C Y — and they did so to RESTRUCTURE THEIR DEBTS — and their lawyers made a shit load of money and they emerged from bankruptcy having gotten away with NOT PAYING a lot of what they owed, to their shareholders, for one.
Which of course, was the purpose.
JacMac,
Regarding post #27, I don’t think it is fair to call Jim a racist based upon his post #18. I didn’t see him say anything along the line of “this group should not have received loans because they’re all evil and stupid.” Calling someone a racist because they are discussing issues involving race is counterproductive to good discussion.
You asked “Are you suggesting the lenders could not have created a responsible lending product that could have afforded Hispanics and African-Americans the opportunity to own a home…” My answer is that there were pre-existing, responsible products that could allow some individuals to afford houses. Individuals buy houses, not groups. Your question also implies that you would support special mortgages for which whites need not apply. I’m guessing that was not your intention.
Some groups are disadvantaged financially and that is wrong. But pressure was put on the lenders to fix it, and that proved wrong too. Since some people couldn’t afford houses using tried and tested means, Mozilo of Countrywide created untried and untested loans. Mozilo wrapped himself in the cloak of social welfare the same as the advocate groups Jim mentioned.
I don’t believe the advocate groups are a major player in the blame game. They may have lit a spark by pushing the idea of subprime lending, but it was greed that really got the fire burning.
Another great debate at LoanWorkout.org!
The point I was trying to make is that what sense is it for a homeowner to call his lender or go to one of these forums to look at their loan. Many of these loans are so fraudulent. I see it every damn day.
So, when these people go to theor lender and they were scammed royally, is the lender going to say you need and attorney right away and rescind this loan and sue us for damages. NO. They are going to get bad advice and not be told the truth.
We all know that. So, that is my blog post. Get them out of the picture and get a buffer in there and protect those who have been scammed. Many of these loans are illegal and they need to be identified. Not all, but as much as we can.
That is all.
I am responding to the first two individuals who left those insensitive and comments, Anne and Joe: I don’t even believe you are two real people without another agenda of some sort. Maybe you worked once as a broker, or are married to a mortgage lender, or maybe you aren’t real and someone else wrote those rude comments just to get a debate going, whatever the case, I think you would benefit from an additional perspective. I too was duped into refinancing into a high cost loan. I won’t bother with all the details of the duping, but getting straight to the facts, as of right now, both the independent broker and the original lender he worked with to originate my loan have since had their respective licenses revoked by the state, and the lender by all the states. Each of them is separately undergoing their own criminal investigations into various charges such as: fraud, forgery, perjury, burglary, etc. and the lender declared bankruptcy. They had sold my loan within the first month to another unnamed entity they have yet to fully disclose. My payment was immediately double the amount I had been paying before to live in the same house. The loan proceeds I took out had to go directly toward the higher payment since my payment now exceeded my income. I kept up until a few months after that ran out, only to encounter my first “adjustment” where my payment increased by almost $500-. It was already $3800-. Then I realized that it would be changing again in 6 months by the same amount, and then again 6 months after that. I am in foreclosure now, and after months of requesting debt validation documents from my “loan servicer” they finally replied. To validate this debt, they sent me a stack of papers that contained more obviously forged signatures than real ones. I know what you’re thinking, sue them right? Amazingly, the two attorneys I’ve met with thus far have suggested I just do a short sale and walk away, after 9 years, and prior to this always knowing I had at least several hundred thousand dollars in equity – and now the best advice is to walk away based on a stack of lies? Anne ? Joe? Do you have any better advice for me or for the individual who wrote this than to seek help from our government, maybe even an expectation of justice? I dont want a handout from anyone. Who ever said that? I just thought, prior to this, that justice applied to all of us, even “lenders”. This isn’t the America I know. Something is wrong with this country. I am being robbed, swindled out of my life savings, and all I’m hearing, even from Average Anne and clock-punch Joe is the “you shouldnt have been stupid” line of reasoning. On the same line of reasoning, does that mean it is now legal to defraud anyone out of anything so long as they don’t become aware of it until later? Do we get what we deserve for being dumb enough to trust a state licensed mortgage professional?
Is good faith and trust totally gone in this country?
Moe: “So, when these people go to theor lender and they were scammed royally, is the lender going to say you need and attorney right away and rescind this loan and sue us for damages. NO. They are going to get bad advice and not be told the truth.
We all know that. So, that is my blog post. Get them out of the picture and get a buffer in there and protect those who have been scammed. Many of these loans are illegal and they need to be identified. Not all, but as much as we can.”
I absolutely agree.
Al:
Racism: Rac\’c2\’b7ism /\’cb\’88re\’c9\’aas\’c9\’aaz\’c9\’99m/
1.\tab a belief or doctrine that inherent differences among the various human races determine cultural or individual achievement, usually involving the idea that one’s own race is superior, IS DESERVING OF SPECIAL, PREFERENTIAL TREATMENT and has the right to rule others.
2.\tab a policy, system of government, etc., based upon or fostering such a doctrine; discrimination.
3.\tab hatred or intolerance of another race or other races.
I’m not sure what your reference to “evil or stupid” means and the rest of your post makes little to no sense to me, especially what you say I’m implying — which is dead wrong.
I don’t imply, I just say what I mean.
And what I said was clear.
Jim stated the ACORN should possibly be blamed for the mortgage crisis because ACORN “advocated banks to lend to all of the community, and not those which actual (had) money or good credit.”
The comment suggests that money should NOT be lent to “all of the community”, THAT some people should be excluded.
Since ACORN, the Association of Community Organizations for Reform Now, is the nation’s largest community organization of low and moderate-income families AND since historicalLY people of color in
America (as a group) often fall into those categories . . .
The comment was racist.
JacMac, I’ll try again.
Previous lending policies were designed not to be racist. They looked at ability to pay regardless of ethnic background. The unintended result of these policies were to give less loans to minority groups who tended to be less affluent. Groups like ACORN took this to mean that the policy was racist. The solution was to lower lending standards, again equally based upon means and not race. As we’ve seen, this has not worked out at all.
Jim was simply pointing this out. That a lending system that wasn’t intended to be racist did disriminate against minorities. At no point did Jim say that banks shouldn’t lend to anyone of a certain ethnic background. ACORN pushed for something, they got what they wanted, and it proved wrong.
Your line, “The comment suggests that money should NOT be lent to \’e2\’80\’9call of the community\’e2\’80\’9d, THAT some people should be excluded.” Some people should be exclued. Those that can’t pay it back, regardless of ethnic background.
Your line, “Since ACORN, the Association of Community Organizations for Reform Now, is the nation\’e2\’80\’99s largest community organization of low and moderate-income families AND since historicalLY people of color in
America (as a group) often fall into those categories . . .” Look how many words you had to put in Jim’s mouth to make him a racist. ACORN is not flawless. Pointing out such a flaw does not a racist make.
Your line, “I don\’e2\’80\’99t imply, I just say what I mean.” Was that a response to my statement “Your question also implies that you would support special mortgages for which whites need not apply.”? If so, then you are a racist, as you are advocating a policy that descriminates based upon ethnic background.
Al, I cannot begin to imagine how you are able to speak to what Jim intended or meant unless YOU ARE HIM?
Are you Jim?
If not, I suggest you let Jim speak for himself.
I won’t even respond to your accusation that I am a racist. Obviously, you have a reason for ascribing motives and reasoning to what I am saying rather than asking me, which would be really simple.
My position is this:
America is a country that has committed terrible atrocities and advocated and operated under a racist system that has discriminated and caused terrible ramnifications for many ethnic groups, generation after generation over the years.
Because this is an OBVIOUS REALITY — that many ethnic groups are STILL suffering the results of he far reaching effects of the racial inequality and discrimnatory systems that were in place in America for sooooooo long, there is a VERY REAL NEED to create new policies to LEVEL THE PLAYING FEILD, undo the HARM that was done to these ethnic groups and creat opportunities for them that will allow them to RISE ABOVE the road blocks that were stacked against them.
Thus the NEED for groups like ACORN and the like.
It is because there is real resistance to speaking of this very clear reality that an honest conversation about racism and the effects there of can never be had : Now that’s my opinion.
Those who have benefitted from the racist system, do not want to acknowledge that benefit, and do not want to admit that others are suffering as a result of the system. Furthermore, they certainly don’t want to do anything about it.
Once the playing field is level, and racism no longer exists (and operates) in America, so that all of it’s citizens are treated fairly then there will be NO NEED for these groups and this type of remedies.
I’m done here because you are speaking for Jim in this matter which shows me that you have some kind of agenda which you haven’t copped to.
I addressed the response specifically to Jim.
Let Jim speak for himself.
Also, Al this is to you, personally
Please do research or where many predatory lenders concentrated their efforts to peddle the toxic ARM loans that they sold, and who they sold them to.
Please open your mind to realize understand who fell amongst the vunerable and fell prey to the scam that’s been perpetrated on the American people.
Please try and realize that the financial inability to afford a home has a long history, dating back for many, many people to the free labor that was given to build the American economy by many who never received compensation for their hard work, was unable to pass on wealth to their children, who then were unable to further their education and create opportunities for themselves and their families.
Please look at the bigger picture.
JacMac,
Would you go up to a financially disadvantaged white person and say to them that living in poverty is wrong, but it’s okay for you.
That is what you are saying.
I believe that ACORN should exist, but they can make mistakes.
I believe that many INDIVIDUALS are suffering of all backgrounds, and that they need help.
I believe that racist policies, no matter what their intent, breeds racism.
I believe that many wrongs have been done in the past, but committing new wrongs does not fix them.
I am not Jim, nor do I know Jim
I am defending Jim because based upon his post, I think you unfairly called him a racist.
Your line, “Obviously, you have a reason for ascribing motives….” What is your reason for ascribing motives to Jim? I don’t really think you are racist, but I can easily interpret your words in a way that shows you are. The same way you did to Jim.
“JacMac,
Would you go up to a financially disadvantaged white person and say to them that living in poverty is wrong, but it\’e2\’80\’99s okay for you.
That is what you are saying.”
Al, you don’t know what I’m saying, that’s clear — it’s also clear that you are not at all interested in finding out. That’s okay. It’s a typical reaction to this touchy subject, the reason why things in America have not and will not change under the surface.
Im still reading all the posts but I just had to comment on this remark by Moe
“Of course these responses are coming from the mortgage industry veterans. Wow, what a surprise, yawn\’e2\’80\’a6\’e2\’80\’a6\’e2\’80\’a6..”
Well I had to laugh at that….Moe…Of course that\’e2\’80\’99s the response that you get from the posters who actually know what the Hell they are talking about. The rest of you are the sheep who are still trying to discern the difference between a 2/28 and a POA.
The truly amazing thing is that, one would think that readers of this forum would be seeking the truth and would value what a “Mortgage Veteran” would have to say, taken with a grain of salt perhaps but the value is still there.
But no…instead I see a bunch of imbecilic banter….the sheep telling the lions how they got slaughtered. Sooo laughable, you should see it from my eyes.
The closest example I can think of is when my youngest boy goes on and on about how he believes the world to work and I just smile to my self and say “Is that how that works sweetheart?”
And then you get insulting and I just want to laugh and open the top of your head like a garbage can and pour knowledge in, knowing that as soon as you understand you will shut-up.
But then I just sigh, secretly knowing that I\’e2\’80\’99m typing out a post that will be read by those in the business\’e2\’80\’a6\’e2\’80\’a6.. and the willfully ignorant.
CTAN
JacMac,
Here’s the big picture for you. When it comes to poverty, whites are disproportinately under-represented. This means that any program designed to help people in poverty will descriminate against whites. I have no problem with this. It will help to level the playing field, a goal we both agree on. I just don’t believe that overtly racist policies are required.
Now I’ll paraphrase you’re last paragraph back to you. You clearly do not want to see that racism is racism, no matter who it is leveled against. It’s okay. It\’e2\’80\’99s a typical reaction to this touchy subject, the reason racism will continue to flourish and will remain buried under the surface.
Wow, how come my post about MHL Pro, Inc. was deleted. Hey Moe, don’t want anyone to know you own a mortage business that advertises -
“We have great manufactured home loan refinance programs for consumers and brokers. Bad credit, good credit, stated income, self employed, NO PROBLEM!”
Al, or should I call you Ward Connolly, please just quit while you’re ahead. You keep putting words in my mouth, restating what I’m saying instead of trying to understand me.
Your definition of racism is skewed.
Repairative measures to UNDO the harm of racism is NOT RACISM. But it seems you and those who think like you are invested in not understanding this.
The core definition of racism is, “The systematic subordination of members of targeted racial groups who have relatively little social power in the United States (Blacks, Latino/as, Native Americans, and Asians), by the members of the agent racial group who have relatively more social power (Whites). The subordination is supported by the actions of individuals, cultural norms and values, and the institutional structures and practices of society.”
By this definition, it is impossible to commit an act of racism against a white person.
I’m confident that none of this will have any effect on your thinking whatsoever.
JacMac
According to the Oxford English Dictionary, racism is a belief or ideology that all members of each race possess characteristics or abilities specific to that race, especially to distinguish it as being either superior or inferior to another race or races.
The Merriam-Webster’s Dictionary defines racism as a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race, and that it is also the prejudice based on such a belief.
The Macquarie Dictionary defines racism thus: the belief that human races have distinctive characteristics which determine their respective cultures, usually involving the idea that one’s own race is superior and has the right to rule or dominate others.
According to UN International Conventions, “the term “racial discrimination” shall mean any distinction, exclusion, restriction or preference based on race, colour, descent, or national or ethnic origin which has the purpose or effect of nullifying or impairing the recognition, enjoyment or exercise, on an equal footing, of human rights and fundamental freedoms in the political, economic, social, cultural or any other field of public life.” This definition does not make any difference between prosecutions based on ethnicity and race, in part because the distinction between the ethnicity and race remains debatable among anthropologists.
From ACORN’s website, “From the beginning, when it brought together Black and white, welfare and working poor, ACORN defied expectations of what a community organization could be. It pioneered multi- racial and multi-issue organizing, led the way in electoral organizing, and branched into innovative housing development, community media and labor organizing.”
ACORN gets it.
Soooo Anyway…..
CTAN, I’m with you finally.
So anyway it right. Let’s get back to the topic of this thread, I’m so done discussing this with you know who.
My appologies if I dragged on this off-topic line too long, but I do feel very strongly that all people should be treated equally regardless of skin color, ethnic background or religion. There. I’m done.
So if a homeowner wins a TILA-based lawsuit and has the opportunity to get a better loan, is the amount of the new loan based on the amount of the original loan, or on a current appraisal of the property (of utmost importance to homeowners in ares where properties have lost significant value since 2005)?
I’m attempting to hold my attorneys hand through this process now. Here’s the real deal: Upon rescission, you get all the money back that you paid to the lender. For me that’s $79,000 in 2 years less about $6000 in principal paydown. PLUS much of the origination cost, still unclear on the broker’s fee, but if you are in foreclosure, and the fees are racking up, this can really bring that total down. Mine’s nearing 1/2 million and this could easily knock 100 grand off -and rightly so, given the lender AND the broker both are under seperate criminal investigations. The hardest part for me has just been finding a good attorney in this field. good luck
I am in a similar situation. Let,s communicate on how this gets handled by the attorneys. Thanks,
I have a situation where I have filed for bk13 and surrendered my vacation home. I will be liable for any defiency balance once the foreclosures go through. I started looking and researching and can anyone give feedback…
I originally did a 5 year balloon on $100,000 and all disclosures correct. 2 years later, I added $25,000 and converted to a fixed 15 year mortgage, the only thing the lender did was a modification. I received no updated TIL. 2 years later I added another $50,000, the lender increased my rate by .25% converted back to a interest only 5 year balloon but only with a modification, no new disclosures or TIL was disclosed. I do not want any money from the lender, but would love to have a case where they can not come after me for the difference once the foreclosure sale goes through. Any thoughts? From what I am reading, I should have received a TIL disclosing the APR and total finance charge even on 2nd homes, however there is no recission.
Borrowers……..beware of the attorneys that you hire. Make sure that they are familiar with the statue of limitations that you feel that the lender has violated. Arbitration clauses still have to resolve TILA violation claims.
I am being foreclosed on my home. I have a 1st and second countrywide loan. There are several problems I see with the Truth and lending section and RESPA violations. I cannot however find an attorney that know this part of the law. Most real estate lawyers are doing closings, if they do closing then they represent countrywide at every countrywide closing. This presents a problem and a conflict.
My loan closed the end of 04. I had cancelled my loan but was theatened with my job for doing so. I worked for the Mortgage Broker. They closed the loans a day after the docs expired and after I had recieved confirmation from Title and the Lender in writing stating confirmation of cancelation. I was already living in home and partial owner. When I filed complaints they all went unanswered. The servicer contacted the lender 3 times telling them to rescind the loan but they would not. I have have had 2 bad attorneys. One actually cost me my home last June because he failed to file the proper papers. I lost 200K of my money which was my inheritance. I now have nothing, I have been fighting this since it closed and now the lender and title are claiming the arms length protection and my last attorney has pulled out because they did not want to keep them in and risk any sanctions. The mortgage broker and escrow have filed BK and my life is a complete mess. If any one can help please respond. I have court next week and I am now representing myself. For anyone thinking of taking on suits like this they can take their toll on your family. If I had any other alternatives I would not have chosen this path. But I can not give up now.
some dope said “banks are suffering the most”. WTF?? Well mr. Bank, get in line at the Public Aid Office, and WAIT YOUR TURN. My kids come first, since you took my house 3 years ago, after sucking me into a fraudulent mortgage and stealing any equity for 5 years over! Yeah, when I lost my job, I tried to sell – but guess what mr. Bank, you overappraised my house so you can write a bigger loan than I really wanted, so I couldn’t sell it before I went into default – you had it all planned out Wells Fargo – but guess what, the clock is ticking in your victims’ favor. And my kids are the lawyers that will bring you down here to my level, where I will be more than happy to castrate you if given the chance. When people get a real load on what you’ve been doing, they will take their houses and give you nothing in return. Coming soon: Wells Fargo and MERS – the Great Demise!
The Attorneys are totally ignorant to the law regarding what’s going on here. This is on purpose, people have no rights unless they know what those rights are and how to exercise them.
Aah, but the bankers and well-to-do here expect an average person to know the paperwork and fraud dealings even better than the attorneys. Grew up with a silver spoon that is about to be shoved down thier throats.
some dope said “banks are suffering the most”. WTF?? Well mr. Bank, get in line at the Public Aid Office, and WAIT YOUR TURN. My kids come first, since you took my house 3 years ago, after sucking me into a fraudulent mortgage and stealing any equity for 5 years over! Yeah, when I lost my job, I tried to sell – but guess what mr. Bank, you overappraised my house so you can write a bigger loan than I really wanted, so I couldn’t sell it before I went into default – you had it all planned out Wells Fargo – but guess what, the clock is ticking in your victims’ favor. And my kids are the lawyers that will bring you down here to my level, where I will be more than happy to castrate you if given the chance. When people get a real load on what you’ve been doing, they will take their houses and give you nothing in return. Coming soon: Wells Fargo and MERS – the Great Demise!
My wife keeps asking me why, why would the bank president let this happen? Why would they ruin our lives? What on earth do they have to gain? I keep having to reassure her and remind myself that we can’t put a name or a face of a bank executive or board member to this injustice. They don’t have a clue what’s going on, they’ve turned this matter over to attorneys and the attorneys get swallowed up in their need for billable hours, it’s not personal, it’s just how they get paid. During my career as a Special Agent with the U.S. Secret Service, I investigated numerous bank frauds and arrested countless criminals, but I never did like attorneys. Let me introduce myself, my name is Arthur E. Wood, in 1986 I was named Law Enforcement Officer of the Year by the Midwest Chapter of the International Association of Credit Card Investigators. Ten years later, along with my FBI counterpart, I was the lead investigator in the successful prosecution of organized crime for the theft of millions of dollars from a prominent Pittsburgh bank. I could not begin to count the number of presentations I made to train your tellers how to protect against bank fraud, counterfeiting, and credit card fraud. I’ve long since retired, but I still work part time for the FBI as a consultant. My wife Paula and I have five children, 14 grandchildren and one more on the way.
Helping our kids was one of the reasons we wanted to tap into our home’s equity, so we set about to borrow money from your bank. Oh, don’t worry, I’m not going to name you, if you want to know if your bank is involved just look up Arthur E. and Paula C. Wood vs. your bank. We did, we arranged to borrow $100,000.00 (one hundred thousand dollars) from your bank. The closing was held at our home, on a Saturday, by a title company. I noticed that something had changed, the loan wasn’t exactly as promised and the title company couldn’t answer my questions. On Monday, I rescinded the loan by notifying you by phone and then faxing the rescission notice to your bank. We then called another bank, who gave us the loan on the terms that were promised. Everything was fine except that two weeks later my wife noticed that we had too much money in our checking account. Uh oh, the rescinded loan must have been funded in error.
Easy to fix, just call the bank, send them a check and everything would be fine. I did, I called, “so sorry Mr. Wood, we made a mistake, no, don’t send us a check, please leave the money in your account and we will electronically reverse the transaction.” This was two weeks before Christmas 2005. We are halfway thru 2009, I still have your money, or some of it, having spent thousands on attorneys trying to get you to rescind the loan. I’m sure it was a mistake, and I fully expected you to make it right. I called again a couple of weeks later to tell you the money is still in my account,” sorry Mr. Wood, with Christmas and all someone just dropped the ball, but not to worry, it is still in the works and we are reversing the transaction.” Then you started to call us, trying to collect on a monthly payment, everyday you would call, and everyday I would tell you the loan was rescinded, Please don’t call anymore. Then it got nasty. My new bank called and said that “they were going to have to foreclose on our loan, because they went to record the mortgage and they were not in first place.” You were!
I don’t have any attorney friends having spent most of my life as an investigator, but, my brother a successful businessman in Virginia had several and he put me in touch with one that suggested that we march ourselves into the Circuit Court here in beautiful Marion County, Florida and sue you for rescission under the Truth in Lending Act. (TILA) That set off a chain of events that lead to the rescission. You did release the lien on our home several months into the action, but then your smart attorneys filed a counter suit against us alleging fraud, conversion and a host of made up charges, they then filed a lis pendens and notice of equitable lien on a lawfully rescinded loan and have effectively stolen our equity by preventing us from selling or refinancing our property.
At this point in my letter you’re wondering, O.K. so where’s the beef, this should all work it’s way out in the court and what’s this got to do with American Banker? Well Mr. Bank President, here’s the beef! This $100.000.00 loan is going to cost the bank thousands and thousands of dollars in legal fees because these attorneys have to keep billing, and nobody at the bank is minding the store. Your inability to rescind a loan within the time alloted under the statute has triggered the forfeiture section of the Truth in Lending Act so your bank is now in danger of losing the original funded money and your imposition of an invalid lis pendens is going to cost your bank over a hundred grand in lost equity. Rescission under the TILA takes the loan from secured to unsecured and the imposition of a lis pendens is an attempt to circumvent the statutory requirements of the TILA. I wrote this letter to point out to you that the TILA has been amended to help banks by not holding them accountable for actions caused by a bona fide error, however, an error with respect to legal judgement regarding the banks’ obligation under the TILA is not a bona fide error. This rescinded loan should not have cost anyone a dime! Now you have allowed your attorneys to ruin the lives of a couple of retirees and your bank is going to lose hundreds of thousands of dollars, for what? You just picked on the wrong guy.
I would like to explained you about this case. On December 2006 I contact Capital One Home Loans and I submitted a loan application. After submitting all the required information I was told by my loan agent that I was pre qualified for a 6.25% fixed interest rate. Then a few days later I received the Good faith Estimate Documents, and two weeks later I received a call for my loan agent giving me the total amount of my monthly payments . He told me that my monthly payment will be $ 1, 408.52 including principal, interest, property taxes, PMI and property insurance. I was so exciting with the numbers and we set our closing date for December 28, 2006. Three months later my loan was sold to Countrywide Home Loans.
In December 2007 I received my statement from Countrywide Home Loans saying that they paid my property taxes and that my new monthly payment will be $ 1,953.00 plus $ 133.00 x 5 yrs to re pay Countrywide Home Loans for the $ 4,811.00 payment that was sent by Countrywide home loan for my property taxes. I was in shock!
In February, 2009 I called Countrywide now formally Bank Of America Home Loans and I told them that my husband work status changed, he is not working enough hours and that my monthly income was equal or less than my house payment, and that my intensions is to keep my property. I was told that I pre qualified for a Loan Modification and that it might take 60 days.
In April, 2009 I called Bank Of America Home Loans and I asked them about the status of that Modification and I was told that it was not in process, so In May, 2009 I hired an attorney. He review my loan documents and he found errors on my Federal Truth In Lending Disclosure Statement, and that I could sued for Undisclosed Liens Against Property, and that it is a violation to the Truth In Lending Act. Unfortunately, my lawyer do not handled those types of cases.
My question is can I sued the Title Company or Capital One Home Loans for my Note Balance?
Please help me!
Thanks,
Maria Ramos