is truly the only way to know if the lender violated laws at the time he gave you the loan. They are used to get loan mods, to stop foreclosures, and as a key defense in court when going up against the lender for any reason.
Do You Have a Predatory Loan?
That is what a forensic loan audit will reveal.
What Is a Predatory Loan?
In its simplest terms, it is a loan that was designed from its inception to wipe you out and put you on the road to foreclosure.
Predatory loans actually contain violations of the federal laws that protect you as a borrower. TILA, RESPA, HOEPA, ECOA were a variety of laws passed since 1969 to protect borrowers from bankers who would prey upon them. The laws have always been there. The banks just chose to prey instead of follow them.
Life Signs of a Predatory Loan:
- Your monthly payment is so high, you can no longer afford to do anything but work to pay your mortgage.
- If even one thing goes wrong you could go under.
- You might miss the mortgage payment if you can’t get more overtime because regular time isn’t enough anymore.
- You and your wife need second jobs to support the mortgage.
- You’ve had to cut back on every expense to pay the mortgage.
- You’ve dipped into savings to pay the mortgage.
- You’ve borrowed from your 401K or lines of credit to pay the mortgage.
- You don’t know how much longer you can stay afloat.
A Few of the More Technical Signs of a Predatory Loan:
- Stated income loan
- Adjustable rate loan
- Bait and switch at the closing table
- High interest rate
- Prepayment penalties
- Interest only loan
- Balloon payment
- Senior citizen
- Pressured to sign
- Broker promised to get you out of it in a year
- And oh so many more . .
The only way to confirm that you have a predatory loan is to get a forensic loan audit completed. Without one, chances of having any real defense against the lender are zero.