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  1. #1

    Default Predatory Lending

    My question involves a mortgage in the state of: Florida

    Need to know if this has a chance of getting dismissed by a judge and on what grounds:

    From 2005-2009, I was not employed but living with my (ex) boyfriend who made plenty to support me.
    In 2007 we briefly separated, my grandfather passed away and I purchased his home for a decent price (during the heyday of loans that required no documentation). I was planning on getting a job, but I found out I was pregnant, got back with my ex and he moved into my newly purchased home and continued to support me.

    He fell upon very hard times with his company, stopped making money and racked up debt. I had some savings that I didnít want to tell him about, but stepped in and magically started paying the necessary day-to-day bills hoping he would put aside his pride and resign his self-employment for a steady job.

    His father knew he was in credit problems and approached him with a loan to get out of his debt. I donít know specifics of their conversation but I think the son asked for around $5-10k, but the father insisted he needed a lot more money to get out of his problem, about $30k. He would secure it by my house. I am the only one on the deed, the sole individual on the primary mortgage, and the secondary mortgage and addíl note was signed by the two of us. The son, my ex-boyfriend, approached me with this dealÖ.and I was extremely hesitant, but it was a 5 year balloon loan and he was only recently in an earnings slump, and some months he would make $30k in one month alone. Coupled with the fact that I was pregnant at the time and hadnít worked in years, I didnít feel like I had much choice at the time. The son insisted he would fully pay it back in full.

    Fast-forward four years, the loan is due in one year and nothing has been paid toward the note. The son and I have since broken up, I have a piddly job that makes no money, have not received one dime of child support, and the son lives in the Florida Keys in one of his fatherís waterfront homesÖ.still unemployed and the father I assume pays for his daily needs in exchange for him doing yardwork, etc.

    There is absolutely no way I can pay this debt back, and when it becomes due, next year, if not paid, then it will compound at the maximum lawful rate of interest.

    Any way out of this?

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Predatory Lending

    So, basically, in 2007 you purchased a home and secured a mortgage in your name, even though you had no income. Your ex-boyfriend made all of the payments.

    In 2008 your then-boyfriend borrowed about $30,000 from his father, and you agreed that he could use your home as security - presumably because he was making all of the payments? Exactly how is this loan secured - a mortgage and note? A lien? This is the loan you purport to be "predatory"? What do you imagine "predatory" to mean in this context?

    In 2012, although your ex-boyfriend has continued to pay your house payments. he has not paid off the @$30,000 loan from his father? If not, who is making the payments?

    (If you want a court to order your ex-boyfriend to pay child support, petition for child support.)

  3. #3

    Default Re: Predatory Lending

    Thank you for your reply. Yes I purchased the home with no income....I had significant savings and this was back in the heydey when lenders had no doc loans. When I separated from my ex he agreed to pay me $3000/mo (recall he was self-employed and I was working for him but not receiving a paycheck). I was able to secure the loan by simply stating that income; in actuality, I never got one paycheck and that's an entirely different story.

    My ex boyfriend never made one payment towards the home, mortgage, nothing....he was out of money by then and I was paying for everything with my savings. (Just re-read my post and realized my dates were off....he did live with me from 2005-2009, but only supported me from 2005-2007....I then separated from him, bought a home, and then supported him from 2008-2009 (off my savings). I got a job in 2009. Because he was out of money and racking up his debt, that's why his father offered to bail him out in 2008.

    The loan is secured by a note and a mortgage, to both of us. I know the father had intented that his son be the one who pay it back; afterall I had lived off him and was pregnant, but, I had the collateral. I thought when you make a loan to someone you have to look at their capacity to repay? In that sense is it predatory?

    I have filed for child support but have not gotten a dime so far; our daughter is now 4.

  4. #4
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Predatory Lending

    You had savings... from the money he gave you? Playing 'hide the ball' with the facts doesn't help our understanding of what happened.

    There's no reason your boyfriend's father had to run a credit check on you, or make you promise to get a job, before you agreed to use your house as collateral for the loan. You knew what you were doing, you knew what your resources were, you knew what your employment prospects were, and you even had a history at that point of borrowing money without any earned income.

    Do you mean to say that there's a child support order in effect, or merely that you've filed?

  5. #5

    Default Re: Predatory Lending

    I had savings from an inheritance. My ex actually never gave me any money but did pay the bills, in exchange for me working for him. When we separated he said he would then pay me a salary but never did. Yes the child support order is for $961/month but I haven't gotten anything yet. Back payments of that alone would cover my portion of the loan, so maybe I could use that as leverage to get out of the loan? If not the loan will accrue at 18% interest starting in one year. I may just have to leave the house....I can afford the mortgage but I can't afford the loan and there's no use in staying in the house if I can never pay that back. There's some sentimental value since I bought the house from my grandfather's estate, but I guess I'll get over that.....

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