Predatory Lending Victims And Loan Modification San Diego Solutions
San Diego Homeowners, do you think your lender or mortgage broker mislead you?
You may have been a victim of what is termed Predatory Lending.
During the previous home loan mortgage boon. Lenders and brokers put clients in Alt-A also know as “Pick A Pay” loans and adjustable rate mortgages without properly disclosing the terms or the features of the mortgage loan contracts. Homeowners were not aware of the implications of a loan that could adjust upwards, or the increase in monthly payments putting them in a situation where they could no longer afford their payments. this is the reason you hear so much in the media about what is know as a loan modification San Diego Homeowners program . Because millions of homeowners were sold loans that were not appropriate for them and they ended up falling behind in payments and had to seek a home loan modification solution.
Below are examples of abusive or unfair lending practices:
Unjustified Risk-Based pricing-
This is in regards to the practice of charging higher interest rates and fees for extending credit to borrowers identified by the lender as posing a greater credit risk. Many lenders will negotiate the price structure of the loan with borrowers. In some situations, borrowers can even negotiate an outright reduction in the interest rate or other charges on the loan. A common way to do this is through a loan modification San Diego mortgage program. Many consumer advocates argue that borrowers, especially but not only unsophisticated borrowers, are not aware of their ability to negotiate, and might even be under the mistaken impression that the lender is placing the borrower’s interests above its own. Thus, many borrowers do not take advantage of their ability to negotiate.
Possible Resolution- Failure to clearly and accurately disclose terms and conditions, particularly in cases where an unsophisticated borrower is involved. Mortgage loans are complex transactions involving multiple parties and dozens of pages of legal documents. In the most egregious of predatory cases, lenders or brokers have been known to not only to mislead borrowers, but actually alter documents after they have been signed. An attorney would conduct what is a what is a loan modification San Diego forensic analysis on your loan for failure to disclose the actual terms of the loan agreement.
Servicing agent or securitization issues-
The servicing agent is the entity that receives the mortgage payment, keeps the payment records, provides borrowers with account statements, imposes late charges when the payment is late, and pursues delinquent borrowers. Most loans are subject to being bundled and sold, and the rights to act as servicing agent sold, without the consent of the borrower… Foreclosures can sometimes be conducted without proper notice to the borrower.
Possible Resolution- When the debtor demands that the current claimed note owner produce the original note with his signature on it, the note owner typically is unable or unwilling to do so, and tries to establish his claim with an affidavit that it is the owner, without proving it is the “holder in due course”, the traditional standard for a debt claim, and the courts often allow them to do that. In the meantime, the note continues to be traded, its physical whereabouts is difficult to discover. A qualified home loan mortgage modification company or attorney will investigate this during the loan modification San Diego screening process. You can watch a video on a Foreclosure Loophole here at “CNBC Foreclosure Video “.
A good loan modification company or an attorney can peform a forensic analysis of your loan documents to detremine if you were a victim of predatory lending. Keep an eye out for part two of this post.
