The Preditory Mistake

I thought a little on how to go about writing this, but i wanted to let people know about it so they can learn of a mistake we made. The Moral of this story is going to be clear, and the only reason im saying anything is to that YOU never fall into the trap we did. Its called "The Preditory Loan".

What is that? Well when you buy a property or place of residence and your Loan broker convinces you it was the right thing and the right time when in truth it isnt. They work shady tactics like saying you make more than you and falsify documents to show you have more income coming in to get you that loan that in all truth, you cant afford. They convince you that you dont have to pay property taxes that you can just refi your place and be done with it. They convince you that you can claim 5 all year long and not have to pay taxes and that youll get money back at the end of the year. They convince you that everything is alright and for the first time buyer who doesnt know better, that you have the best deal and that THEY are going out of their way for you, buying points, incorrect escrow closing dates, Oh you don't need an inspection lol.... In the end You were convinced that the stars aligned for the right reasons. We were blind suckers...

So the end result.. we can't refi our place at the moment *yet* due to an LTV issue which is OUT of our control. YES we have equity, and its 25k apparently, but in order to beat the the Prepayment Penalty that ends in 2009, it will need to be up to 35k! (yep fucked) However in 2008 our place goes adjustable..which means a higher payment that i just dont have the cash to work through it... you feel where im going with this?

So leaving out details, its really heartbreaking and stressful to be in mah shoes right now. We may sell our place, we may keep it, we are actually discussing legal options because of the preditory loan that happens to many, MANY people. There are agencies out there that we are trying to reach that work on cases like ours.. Because we are not alone... and hopeully YOU can learn from this mistake. All in all we will be ok. We will not loose our place, we will sell if, if need be and be done with it, with a big fat lesson.. that I pray you don't ever have to make.

PEEEACE IN THE EAST DAWG!