The documents has been signed and the loan closed two weeks ago,and I just found out that I've been taken with a negative amortization loan and a 3 years pre-payment penalty that I had no idea that was in the terms of the loan.
2007-01-06 13:01:43 · 10 answers · asked by wshaker@sbcglobal.net 1 in Business & Finance ➔ Personal Finance
HI: Don't go there. People get upset and want to strike back at someone that they believe have don them wrong. It is better to find the good in what is at hand.
I, L O V E negative amortization loans. If you have one you are guaranteed a loan (low payment) if you need it. Without it most people loose their home because they can not meet the monthly mortgage payment. I have one, before I got it, I paid $1450 a month for (principal, interest, escrow).
Now my minimum is $678 a month, fully paid interest is $942, any payment over full interest is first applied to escrow $287.50 per month. Any payment above this reduces the principal I owe. I pay $426 per week, about $1,704 a month, I save money by paying weekly instead of monthly. This mortgage drop my interest by 1.5%, so by paying $250 more per month than I was before the mortgage, I am moving ahead faster.
If the need arise, I can legally and without penalty delay payments to my mortgage. It is a choice that is offered, it should only be accepted if it works for me.
Please check, are the interest terms lower than a standard mortgage? If so, please remember that the funding company is hoping that you will be normal and pay the minimum. This is sure death just waiting for a minor setback in your life. Often this set back occurs because you are not paying off the mortgage. Prepayment penalty occur if you pay off the loan before the three years are up.
People develop bad habits, mortgage - remortgage - and mortgage again. This is bad for the lenders and the borrower. If you really want to get ahead, learn to invest in mortgages instead of just being a consumer.
E-mail me, I will let you know a few things you can do to add to your income.
2007-01-06 17:21:49 · answer #1 · answered by whatevit 5 · 0⤊ 0⤋
It sounds like you have an option arm. If it is, you have a choice or 4 different payments every month. Minimum payment is about 1.5-2%
second option is interest only, third option is a regular 30 year and 4 option a 15 year loan.
If you make the minimum payment, you will have deferred interest and your principal will increase. As long as you pay 2,3, or 4 option, you will be OK. Whatever the loan is you have, should have been fully explain to you when you signed your application and docs. If you do have an option, is a great loan, if you know how to take advantage of it.
2007-01-06 14:40:05 · answer #2 · answered by ig86 1 · 0⤊ 0⤋
Did they give you the required Truth in Lending form prior to the closing? did you ask for one? It's the law to have that Truth in Lending paperwork available 24 hours before closing. It tells you exactly what you are getting into.
Was this World Savings Bank by chance? They tried to do that to me 4 years ago. Said I was approved and then tried to stick me with not one but 2 crappy loans. I found another lender at the 11th hour and then filed a complaint against them with every banking regulating agency I could dig up.
Also-- contact www.naca.com
They are a non-profit housing advocacy group that does it's own lending. They took on Fleet Bank in a predatory lending lawsuit and won. They use the settlement money to fund their mortgage program.
I am sorry you were screwed, but don't go down without a fight.
2007-01-06 16:16:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I have had similar experiences in my life and they turned out to be valuable learning experiences for me. I was screwed and lived with the written terms of the contract that I had signed. You must read all documents or get someone you know or trust to do so for you such as a lawyer. Sorry dude. It just some money and if that's the worst thing that happens to you be happy.
2007-01-06 23:01:48 · answer #4 · answered by Bullwinkle 4 · 0⤊ 0⤋
That sounds like a pretty standard mortgage. On top of that, most likely you signed the paperwork stating that you agreed with the terms. Read over ALL of your papers that you signed at closing. Read the fine print and every thing else in full detail.
2007-01-06 13:04:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Did you read before you signed? If these clauses were not disclosed (not included or referenced in the documents signed, then you may have a case. If however, they are there and you failed to read and or understand them, then there is no recoursive action on your part. Unless of coourse, you can somehow prove that you were under duress or someone was holding a gun to your head ie: threatening you in some manner...
2007-01-06 13:12:33 · answer #6 · answered by Doc 7 · 0⤊ 0⤋
Google "strikes against national"... Are you scorned when you consider which you are able to no longer arise with the money on your loan or do you particularly think of there replaced into some wrongdoing? looking on your state, the duty can fall heavily on the customer to comprehend the main factors of the deal (after all, you probably did assessment your HUD at length previously final). detect a variety action lawyer in case you think of this could have handed off to others and greater of success!
2016-11-27 00:46:42 · answer #7 · answered by ? 4 · 0⤊ 0⤋
Breach of Fiduciary Duty is one that you can sue for. There are plenty more. Consult an attorney.
2007-01-06 13:03:40 · answer #8 · answered by Truth 2 · 0⤊ 0⤋
Go to legal aid and ask. You get a free question and answer and then would only have to pay what you can afford.
2007-01-06 13:17:12 · answer #9 · answered by Anonymous · 0⤊ 0⤋
sue him
2007-01-06 13:03:17 · answer #10 · answered by Anonymous · 0⤊ 0⤋