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Article:
Are you a Victim of Predatory Lending Practices? by: Kenneth M DeLashmutt Help is available to borrowers who have claims against Predatory Lenders. Lenders all over the country are violating the Truth in Lending Act and other State laws regulating mortgage lenders and mortgage brokers. If you are a victim of predatory lending or mortgage lender fraud, you may be able to void the mortgage and apply 100% of your payments to principal. You may also be able to recover money damages. If the answer to any of the following questions is 'yes,' please get out your mortgage closing documents and audit your loan documents for violations. 1. Have you repeatedly refinanced your loan? Was the last refinance within the last 3 years? (A common predatory practice is 'flipping,' which involves 'repeatedly refinancing a mortgage loan without benefit to the borrower, in order to profit from high origination fees, closing costs, points, prepayment penalties and other charges, steadily eroding the borrower's equity in his or her home.') 2. Did you increase rather than lower your rate upon refinancing? 3. Are you paying an interest rate in excess of 9.5%? 4. Was the loan obtained to pay for home improvement work that was not done properly, or even at all? 5. Have you had problems with the mortgage company regarding untimely posting of monthly payments? Sudden increases in payments? Adding amounts to your balance for insurance, 'property preservation,' or other 'advances'? Does your principal balance never seem to go down? 6. Were you charged high closing costs (points and fees) on the mortgage? 7. Did the terms of the mortgage change to your detriment at the last minute before the closing? 8. Did the lender pay money to your mortgage broker (look on your HUD-1 Settlement Statement for a 'premium' or POC (paid out of closing) 'YSP' or 'yield spread premium')? 9. If you have an adjustable rate mortgage, were any adjustments done improperly? Can you even tell if the adjustments were correct or not? 10. Does your loan contain a prepayment penalty? 11. Do you believe you were treated unfairly by your mortgage company? Has correspondence with the mortgage company gone unanswered? (Mortgage companies have a statutory obligation to respond to complaints and requests for explanations of accounts. Often, they don't. Each failure may entitle you to $'2
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