Help for victims of predatory mortgage lending
Predatory Lenders
You may be the victim of predatory mortgage lending. You may have purchased a new home
or otherwise did not qualify for a traditional mortgage. These seemingly helpful lenders
had it in their best interest to provide you with a loan knowing that interest rates
would go up. Your builder may have also inflated prices on your home and it is now worth
half the value or less of the amount you owe.
We believe you have a right
to your home and should not be a victim of this predatory mortgage lending. The good
news is there are legal solutions to this problem that allow you to keep your home without
filing bankruptcy.
Interest Rate Reduction & Payment Rate Reduction
Lenders who offered Adjustable Rate Mortgages in order to secure you a loan knew that
the rates would eventually go up. You are now faced with mortgage payments
you can no longer afford.
Our job is to convince the current lender that it is better to lower the your
payment by lowering the interest rate or payment rate
by creating a payment plan
the you can afford, rather than to take the home with a foreclosure sale and lose money on
the re-sale.
The lender knows this and we know this! We use this to your advantage to stop forecosure.
Keep in mind lenders lose money on bank owned properties as it will sell for
less than market value. Plus they must pay a commission to a Realtor and closing cost in addition to
the cost of holding the property while they wait for a sale in a market that is still depreciating.
This technique stops foreclosure
by showing the bank they make more money by allowing
you to keep your home. The bank doesn't want your home. It costs them far more money in the long run. We use
this to your advantage.
We need to prove to the lender what the maximum payment is that you can afford by
creating a financial plan for you that your lender will approve.
It is likely that you are often late with your payments and in foreclosure
or soon to be in foreclosure,
we need to ask the lender to forgive your delinquent payments or put them on the back of the loan.
An interest rate reduction
in most cases is the only possibility for a homeowner to stop foreclosure
and retain their home. Even predatory lenders don't want to lose money.
Principal Reduction
You may also be in a situation where you are upside down on your mortgage. You owe
more than the property is currently worth. This happens many times when you purchase a new
home and builders have inflated the cost of upgrades 50% or more. You may have a home
that you owe twice the current market value.
When a property is upside down and you are facing foreclosure,
you have more leverage to stop foreclosure
then you may
realize. It is our job to force that leverage upon your lender. In doing so, we
are successful in wiping out large portions of your principle.
With a second mortgage we can typically remove 50-80% of the loan.
In today's market, we can also convince the lender of first lien holders to lower the principle
amount to the present market value. (ex: a homeowner owes $600,000 on first but the appraised
value is $500,000. We can convince the lender to lower the loan amount to $500,000.) That is a
$100,000 reduction in principle for you.
Each loan is different and market value varies. We research each property and fight for you.