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We have a CountryWide Interest Only loan from 2006 and paying 7+% interest now to B of A and owe more now then when we started 8 years ago. Got hit hard by the crash of 2009 and almost lost the house and now credit is not good enough to refinance (was 750). Is there any recourse for this style loan or is it considered predatory lending? Thanks in advance, Be Blessed, Jim
We have a CountryWide Interest Only loan from 2006 and paying 7+% interest now to B of A and owe more now then when we started 8 years ago. Got hit hard by the crash of 2009 and almost lost the house and now credit is not good enough to refinance (was 750). Is there any recourse for this style loan or is it considered predatory lending? Thanks in advance, Be Blessed, Jim
I would not say it was it was predatory lending, unfortunately for you it was one those situations of being between a rock and a hard place. The only recourse I see is to work to improve your credit score where you can get a better loan. The good news is that interest rates could remain low for awhile and you will have the chance for a better rate in the future. Good luck to you, this thread will most likely be moved to the real estate section where maybe the posters have better advice.
We have a CountryWide Interest Only loan from 2006 and paying 7+% interest now to B of A and owe more now then when we started 8 years ago. Got hit hard by the crash of 2009 and almost lost the house and now credit is not good enough to refinance (was 750). Is there any recourse for this style loan or is it considered predatory lending? Thanks in advance, Be Blessed, Jim
Did you sign about 75 pages of disclosures at the beginning of the process, and then again at closing, acknowledging that you WANTED the loan?
Irrespective of your complicity, I do think you might gain some traction in working to have the loan modified. An Ambulance-Chasing grade attorney could help you. Or you could contact the Consumer Finance Protection Bureau: Submit a complaint > Consumer Financial Protection Bureau
We have a CountryWide Interest Only loan from 2006 and paying 7+% interest now to B of A and owe more now then when we started 8 years ago. Got hit hard by the crash of 2009 and almost lost the house and now credit is not good enough to refinance (was 750). Is there any recourse for this style loan or is it considered predatory lending? Thanks in advance, Be Blessed, Jim
Why would an interest only loan be predatory?
How could you owe more than when you started (other than one month's worth of interest more)?
Why would an interest only loan be predatory?
How could you owe more than when you started (other than one month's worth of interest more)?
Sounds like a neg-am and not a Interest Only or maybe missed payments. Nothing is /was stopping you from paying additional principal. Many I/O were adjustable, if so your rate might go to 3% soon.
We have a CountryWide Interest Only loan from 2006 and paying 7+% interest now to B of A and owe more now then when we started 8 years ago. Got hit hard by the crash of 2009 and almost lost the house and now credit is not good enough to refinance (was 750). Is there any recourse for this style loan or is it considered predatory lending? Thanks in advance, Be Blessed, Jim
Predatory today? Yes, if it was a no doc loan. In 2006? No, it was the norm and there is no recourse for a bad decision.
You were lulled into a too good to be true free ride and it's piper-time. The problem now, no one is going to support a reduction in rate, if you can't support the lower payment.
You need to face this soon so you can concentrate on recovering.
Sounds like a neg-am and not a Interest Only or maybe missed payments. Nothing is /was stopping you from paying additional principal. Many I/O were adjustable, if so your rate might go to 3% soon.
Did Countrywide do neg-am? I don't remember them doing so.
I'm not sure if you are looking for legal recourse or what. Have you constantly try to work with B of A to get it modified? I know people that where denied for years but then approved last year from their bank. Things are constantly changing and lawsuit result in different programs.
Quote:
Originally Posted by TimtheGuy
Did Countrywide do neg-am? I don't remember them doing so.
I don't know how the loan can be higher than it was 8 years ago then.
Predatory today? Yes, if it was a no doc loan. In 2006? No, it was the norm and there is no recourse for a bad decision.
You were lulled into a too good to be true free ride and it's piper-time. The problem now, no one is going to support a reduction in rate, if you can't support the lower payment.
You need to face this soon so you can concentrate on recovering.
It is only "predatory" if you were pushed into a product you could not afford based on monkeying with the documentation to approve you and/or falsifying info to the banks.
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