Brokers who lie, and more subprime nightmares

[badmomma]

Many homeowners who were subject to predatory lending practices - including brokers who misrepresented payments - are trying to rework their loans. Few are having any luck.


HARTFORD, Conn. (CNN) -- Yolanda Cruz knew soon after she refinanced her home two and a half years ago she had a problem.

She thought the $1,478 monthly payment quoted by her mortgage broker included taxes and insurance. In fact, Cruz says she asked the broker repeatedly if those costs were included and was reassured they were.

"We just took his word for it, and unfortunately that's not what it was," Cruz said.

Soon, she began receiving tax bills from her town of East Windsor, Connecticut. She couldn't afford to pay them.

"I feel I was taken advantage of," Cruz said.

Cruz contacted her lender right away - the beginning of a two-year effort to renegotiate her mortgage. She called and wrote letters, and although the mortgage company told her they were willing to work with her, they wouldn't rework the loan or forgive any arrears.

more here:http://money.cnn.com/2008/03/19/real...ion=2008032009

[flippinout]

Its a shame that people are treated that way by people they should be able to trust.

To find out at a later date that insurances and property taxes are not included in your mortgage payments after being told that they were would, to me, be reason to sue the broker. But, proving that the broker assured the mortgagee that they were included would be hard to do.

Because of lies like this, people end up losing their homes, but then again, isnt all of this included in the contract? It should be, to my way of thinking.

There needs to be better regulations put on the brokers etc. They talk about truth in lending, it seems that these days, there is no such thing.