Law Offices of Christopher T. Howell, Esq. - Fighting Mortgage Fraud
Across the country, foreclosure rates are soaring. Across New Jersey, people are looking for solutions, trying to find ways to protect their homes. Unfortunately, when people are their most vulnerable, other people are looking for a quick way to essentially steal money. Predatory lending techniques have cheated many people out of their houses and all of the equity they have acquired in these houses.
If you have been the victim of predatory lending techniques, come to the Law Firm of Christopher T. Howell, Esq. in Bloomfield, New Jersey. An experienced trial lawyer can protect the rights and interest of people who have been harmed by predatory lending. Contact us today for a free initial consultation so that we can determine your potential remedies from being a victim of predatory lending.
What is Predatory Lending?
Although home mortgage lending is regulated by state and federal authorities, none of the statues and regulations governing mortgage transactions provides a definition of predatory lending. Predatory lending-whether undertaken by creditors, brokers, realtors or even home improvement contractors-involves engaging in deception or fraud, manipulating the borrower through aggressive sales tactics, or taking unfair advantage of a borrower’s lack of understanding about loan terms. These practices are often combined with loan terms that, alone or in combination, are abusive or make the borrower more vulnerable to abusive practices.
Predatory lending generally occurs in the subprime mortgage market, where most borrowers use the collateral in their homes for debt consolidation or other consumer credit purposes. Most borrowers in this market have limited access to the mainstream financial sector, yet some would likely qualify for prime loans. While predatory lending can occur in the prime market, it is ordinarily deterred in that market by competition among lenders, greater homogeneity in loan terms and greater financial information among borrowers. In addition, most prime lenders are banks, thrifts, or credit unions, which are subject to extensive federal and state oversight and supervision, unlike most subprime lenders.
What is equity stripping?
Equity stripping is one of the most vicious forms of predatory lending. Equity stripping is a term used to describe situations where, when a homeowner has fallen behind in their mortgage payments, a person or company offers to “rescue” them from this predicament.
This “rescuer” offers a new lease agreement. Under this arraignment, the house is purchased by a third party and the current homeowner is allowed to “rent” his or her house for a set amount of time. At the end of that time, the former homeowner will be allowed to re-purchase the home for a set amount.
In the small print though, these lease agreements are terribly unfair to the homeowner. They usually contain a provision ensuring that if the homeowner falls behind in the lease payments, he or she loses the right to repurchase the home and can be evicted. At this point, all of the equity the homeowner had in the home is lost to the “rescuer”, who was truly nothing more than a predatory lender taking advantage of vulnerable people.
Contact Us Today
If you have been the victim of predatory lending schemes, we can represent you effectively and protect your interests. Contact us today to schedule a free confidential consultation with an experienced lawyer.
Tenacious-Trustworthy-Compassionate
Attorney who aggressively Pursue Claims for the Victims of Predatory Lending
Law Offices of Christopher T. Howell
348 Franklin Street
Bloomfield, NJ 07003
Phone: (973) 259-1122
To speak with a New Jersey mortgage fraud, foreclosure defense and short sale lawyer, contact Law Offices of Christopher T. Howell.
Mastercard and Visa accepted • Se Habla Español
Law Offices of Christopher T. Howell provides immigration legal services and personal injury representation in the following New Jersey locations: Essex County, Hudson County, Union County, and Passaic County, including Bloomfield, Montclair, Orange, Clifton, Nutley, Paterson, Hackensack, Newark, Jersey City, Elizabeth, New York City, and Philadelphia.
