Predatory lending

How not to buy a brick in a box off the back of a truck.
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Joined: Mon Nov 29, 2004 9:04 am

Predatory lending

Post by seebs »

Predatory lending is a definite example of a scam/fraud that affects lots of people. Anyone here got interesting stories?
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Post by Mycroft »

Once when I was refinancing a man to get him away from Fairbanks Capital and a foreberance agreement he couldn't afford, I was shocked when the customer service rep in their collections department refused to give me a payoff figure because, "We've already made arangements with him, he doesn't need to refinance."

Excuse me?! I told him in no uncertain terms it wasn't his place to make that decision for his customer, and after a few call backs and a few steps up the heirarchy, I had my payoff.

That's probably my worst horror story after six years in the mortgage business. I've had other cases where lenders report lates that wern't, or credit payments to wrong accounts, but I've also learned that in the vast majority of predator lending cases, it's really the customer and not the lender at fault. It's not nearly as much fun to discover that an individual in financial trouble decided to fudge the facts in telling his story as it is to believe in the big bad money-soaked corporation trying to steal homes from helpless victims, but that's the truth of it.

In the end, they want the money you agreed to pay. They don't want your house.