Let us do some homework if you got a predatory loan?

Let Us Do Some Homework If You Got a Predatory Loan?

Foreclosures in Nevada are on the rise and unfortunately everyday more and more homes are being foreclosed. Not all of that is your fault, and it is not all based on your non payments of the monthly mortgage payments. There is something else to it, and that is the predatory practices of your lenders. They are the one who has given loans to unqualified people, with unverified and unsubstantiated incomes and financial reports, and started loans with the so called “teaser rate”. So they are also culpable in this fiasco. In fact, they are the one who caused this fiasco.
1. Find out if you have a balloon loan. A balloon loan is the one in which after a series of low payments the entire loan balance is due in a large lump sum) and your need to obtain another loan to finance that final lump-sum amount.

2. PMSI and other mandatory insurances? Were you required to buy credit insurance, insurance that will repay the debt if you die or become disabled? (Note: Credit insurance is optional and will not affect your loan decision if you decline to buy it. It can, however, add considerable cost to the loan transaction. You should decide whether you are going to purchase credit insurance carefully.)

3. Have you refinanced your loan several times, and in each instance increased either your monthly payment and/or the total amount you owe on your home?

4. After settlement, were you surprised to find that the monthly payments on your mortgage loan were higher than you anticipated based on the initial disclosures?
5. Did you incur any unexpected costs at settlement that were not explained to you prior to the settlement?

6. Were you asked to leave signature lines or any other important line-item of any form blank? Did the lender or broker alter any information you entered on your loan application?

7. Check your loan file. Are any of the following disclosures missing?
- Good Faith Estimate:
- Special Information Booklet
- Truth in Lending
- HUD-1 Settlement Statement
- Any missing signature of one of the spouse
- Any spouse missed any of the initial in those documents
o Each one of the spouse suppose to get separate documents for loan closing.

8. Do your documents reveal that your interest rate calculation will change to require you to pay "daily interest" in instances when your payments are late?

9. Is your loan amount on the loan you obtained higher than the value of the home?

10. Were you encouraged to include false information on your loan application?

11. What is falsification of loan documents? This is most common in Nevada because most of the people, who worked in the service industry, never made more money to deserve a conventional loan. Most of them got 80/20 loans. That means they have a principal mortgage accompanied with a secondary mortgage. Unfortunately, they are the prime victim of this predatory mortgage practices. Their assets, jobs, secondary job, and of course the so called “other income” was never verified by a single verifier. I still see lots of the missing documents in the loan/escrow package. Most of the times, the TILA documents are missing, at other times the most missing are the RESPA documents. The borrowers were given a different Good Faith Estimate and the escrow papers reveal a different outlook.