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  1. #1

    Default When Can You Sue for Predatory Lending

    My question involves real estate located in the State of: Ca.

    I have an auction date for my home on July 15, 2011. I will most likely file for bankruptcy at this point.

    At the time I took out this private party loan, I was charged $15,000 for a $150,000 loan on a property that was free and clear. I had only wanted to take out a home equity loan for about $50,000 - $75,000 but was offered $300,000. I said no that was too much and they said I should at least borrow $150,000. So I did, thinking OK the extra should really help our business.
    The loan was stated income with 10.75 % interest only.
    So the loan process went from one referral to another, eventually being closed without me meeting any of the lenders or servicer's involved. The loan fee made my jaw drop but I was in between a rock and a hard spot.

    What made me go huh? was last week when I saw a loan servicing company as the original trustee that I had never heard of before. Feeling something not right,I googled that company and found a bunch of lawsuits for racketeering,truth in lending, etc. etc.

    I don't know that anything fraudulent was done but my gut tells me there was something very underhanded at the time this loan was taken. Payoffs or something, I can't put my finger on it...

    I normally shy away from suing anyone or going to court for anything, any of that but if I was taken advantage of at closing time I am not averse to fighting this if there was bad-doings.

  2. #2
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    Default Re: When Can You Sue for Predatory Lending

    The loan fee made your jaw drop, but due to your extraordinarily poor credit it was the best you could do? If not, why didn't you shop around? If so, it sounds like you knew exactly what you were doing.

    It's not at all unusual for a lender to use a loan servicing company for a mortgage.

    What part of this is either "predatory" or the basis for what you believe to be a cause of action?

  3. #3

    Default Re: When Can You Sue for Predatory Lending

    I'm not going to make any excuses here.
    I took out the loan 8 months after my mom died, 16 months after my dad died. They were my best friends, We had an awesome and loving relationship.
    My husband and I owned a home that was in a first time buyers program through the City of Fremont. That home was in default and the city was freaking out that their interest in the property would be lost if it foreclosed.
    The person in charge of the redevelopment agency referred us to talk to someone, who set up all the details to take a loan out on the house that I had inherited to pay off the house that we were in default with so the city would not lose their interest.
    What was on my mind at the time is I didn't want to lose anything else in my life, or move into the house right at that time. I was not doing very well or in a very good state of mind, In fact, I was a walking train wreck. I wanted to only take out a smaller loan to help tide us through the rough times. I was told I could not take a smaller home equity loan....
    Yes I signed the docs. Was I taken advantage of? That's the question I ask myself. I beat myself up all the time over this decision.
    My specialty is design not finances.
    Yes I guess I should have said NO NO NO and let the city lose their property. Or let them sell it or whatever they were going to do.

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