Y S asked:


My parents have two properties that they refianced approximately 5 years ago. They are the adjustable rate type loans that give you four options to choose a payment. My parents do not know how to read and write and the person tricted them by telling them its a fixed rate. Know they are making payments but their equity is being eaten away. I want to get an attorney and remodify their loan. Is this possible and should I get an attorney. My parents are old and I am not sure if they can get it refianced or remodifiy the loan.

Darren

2 Responses to “modification of mortage loag?”

1. Bridget H on September 11th, 2009 5:06 am

   Katherine

   If your parents were lied to, you need to contact the Bank’s regulator. If you cannot find the regulator on the bank’s website, contact the FDIC (FDIC.gov). This is predatory lending and it is illegal.

   Ask the Bank for a copy of all papers signed by your parents. Your parents would have been required to sign a disclosure notifying them of the variable rate. This would be on the ‘note’ itself or a seperate variable rate loan disclosure.

   If you are not familiar with the loan docs, take them to a different bank that you feel comfortable with. Tell them your story. Ask if there is a pre-payment penalty at the old Bank to payoff the loan. Then see what it will take to refinance the loan, it may cost in the fees for the refinance, but it will pay off in the long run.

2. Beth on September 11th, 2009 6:01 pm

   Warren

   Ignorance is not a legal defense for anything. Sell one to pay off the other.

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