Loan Modification

Foreclosed By Mortgage Company That Tricked Me?

By Kurt O'Keefe, Detroit Consumer Attorney

You relied on the mortgage broker, who was maybe even a “friend,” and signed papers without reading them, and now you are facing foreclosure by the mortgage company that scammed you.

It is possible you do not even know what documents were submitted by the mortgage broker to get the loan that you now cannot pay.

The brokers knew what numbers the mortgage company needed to see to issue a mortgage.

They also knew how much they would get paid for closing that mortgage.

So, guess what?  They put people into mortgages that gave them more money, which, of course, were the higher interest rate mortgages the mortgage company wanted.   Not the lower interest rate mortgage you, their customer, wanted.

That and many more tricks were pulled when mortgage money was flying out the window.

Now the other shoe has fallen and foreclosures are way up again.

So, you get the foreclosure notice, check your mortgage closing papers, and find out you were scammed.

What can you do?

First, get the facts.  Find as many of those mortgage documents as you can.  Anything in writing from you or to you from the beginning.

What were you being told?  Write down whatever you can remember; it is usually not the same as what you will find in the papers.

What do you remember about the closing on the mortgage?  Who was there?

Were you rushed through?  It is amazing how many of my clients were given 4:00 p.m. closing appointments, often on a Friday, and told they had to get out of the room by 5:00 p.m.

Were  you allowed to read the papers before you signed them?  Sometimes, the closing agent just flips through a stack of papers, showing only the bottom few inches where the date and signature go.

Although I have many clients who did not even sign many of the papers.

These are just some of the things to look for, once you have all the facts, find an experienced consumer attorney.  There may be legal defenses you can use to stop the foreclosure.

Full post as published by Mortgage Law Network on July 04, 2009 (boomark / email).