Judge KOs 525G mortgage to slap bank

[Les]

We specifically asked for a fixed rate loan and were told we were getting just that. They changed us to an adjustable rate after we closed, and they added an early refi penalty.

Did you get a truth-in-lending statement prior to closing and wasn't there a notary there to witness and sign all the documents? A bank can't cannot arbitrarily change the documents and add penalties after the fact, and if they do, you have documentation to prove fraud was involved. Besides, once a mortgage is sold, there is no prepayment penalty.

You can talk about educated people all you want, but the bottom line is most all people to not read the fine print,

They are idiots.

I heard on PBS that even if you do read the fine print you still need a lawyer to tell you what it means.

That's why you hire them, to interpret the fine print so you know what you are signing.

So, do not give me any more CRAP about it being the borrowers fault entirely.

This is an exchange of opinions, not crap, and no one is giving it to you. As far as being the borrowers fault, if you sign the papers presented and you don't read them or understand them, it is your fault.

When businesses fail because people do not have the money to buy, then there is also a loss of revenue for state and local governments.

Very true, so lets forgive all the outstanding mortgages, and have more bank failings. Should banks be more willing to renegotiate mortgages in arrears, it would be nice, but nothing obglitates them to do this. I agree the current economy in the financial arena is less than what we would prefer, however the Fed is causing this by not raising interest rates. Banks can get treasury bills for next to nothing, literally, so why should they agree to a 30 year note at 4%. Banks are only paying about 2% for CDs, so they are just doing what is prudent for their business.



Everybody wants to blame someone else when they make bad decisions, and the only one to blame is the one looking back at you in the mirror.

 

[Rodger Tellefson]

Businesses run on contracts and fine print. If you don't read it, or don't understand it, then pay a lawyer to protect you. If you choose to do none of the above, then, yes, it is all on the borrower.

Unless you are a lawyer youself, I bet none of you have ever hired a layer to read the fine print. So, do not throw the lawyer opinion out there unless you have personally done so; which you have not stated to that fact.



In the future I will get a realestate lawyer to read the fine print befoe signing any loan document.

 

[Thomas Rogers]

Rodger,



I am not a lawyer. I have purchased two homes, and refiied one of them twice. 3 out of 4 of those mortgage transactions I paid a lawyer to review the documents and to represent my interests at closing.



However, for my last refii I took my chances and reviewed the materials myself, and was comforted by the fact that the refii was simple, as were the forms, and contracts, and the lender VERY reputable (Wells Fargo).



TJR

 

[Les]

Unless you are a lawyer youself, I bet none of you have ever hired a layer to read the fine print. So, do not throw the lawyer opinion out there unless you have personally done so; which you have not stated to that fact.

I have, so stated...



Roger, these are legal documents binding you to the largest purchase you will ever make, it just makes good sense to be sure you fully understand everything expected of you, and the seller.

 

[Tom Schindler]

However, for my last refii I took my chances and reviewed the materials myself, and was comforted by the fact that the refii was simple, as were the forms, and contracts, and the lender VERY reputable...

So you read it with "Good Faith" that the lender was not going to pull some type of unethical scam on you?



Did those people that got forgiven on their loan take "Good Faith" with their lender?



If the lender has a rep for doing things that are unethical, or leaning onto the illegal side, it should not be brought up in court? That company is getting what they deserve. I do not feel sorry for them.





Tom

 

[Rodger Tellefson]

TJR,



Thank you for backing up your statements. I just have a lot of judgement around lending instutions that, although legal, use unethical and immoral practices just for profit.

 

[Thomas Rogers]

Rodger,



No problem.



I haven't seen what you have seen, not in the northeast anyway. I'm not saying there aren't some shaddy, predatory lenders out there, I am sure there are. But that's even more reason to NEVER sign anything you haven't read, nor understand, and if it is presented in a way that when read you can't understand it, then get a lawyer (or get one anyways, just to be sure).



My last refii was brain-dead simple. Papers sent to me for notary, no closing costs, no appraisal, just a new 4.99% fixed 15 year rate (was paying 5.75 on a 20 year). There was a "truth in lending" type page that outlined everything...interest rate; loan term in months; total paid each month; total amount interest paid over the life of the loan; amount of the new mortgage (exactly the same as what I owed on the home, not a penny more); monthly payments, the whole magilla.



Often too many people look into buying something over time, and ONLY focus on the monthly payment. They don't concern themselves with all those other things I just mentioned. That is THEIR ERROR!



TJR

 

[Larry Gamble]

I was a mortgage broker for a while, during the re-fi boom, and a lot of folks wanted to cash out equity in the homes. 99+% of my customer weren't greedy or trying to deceive. They just made plans and incurred debt based on dual income households. Unfortunately bad things happen to good folks that impact their financial planning.



Everyone is making assumptions based on what a reporter chose to include in the story. There are no facts being laid out other than the couple had a loan and the judge found the bank at fault and it sounds like the bank is going to appeal.



How can all these different suppositions be claimed by you guys? Does anyone know this couple? Does anyone know how the negotiations for the re-fi went?



This thread is worse than watching the cable news networks after a plane crash when all the experts chime in with they think went wrong.



Unless someone gets a transcript from the trial, we don't know what factors were in play here.



Larry

 

[Bill Barber]

larry, this site is full of experts, they post in all threads,post whores that have no clue.

 

[Julio R]

private equity groups are going to be the next big crash like the banks only it will be alot worse

 

[Bill Barber]

zero. pls explaine the above

 

[Tom Schindler]

zero. pls explaine the above

Who is zero? I see an xero, but no zero.





Tom