They read the Balloon note and the TIL and saw what their final payment would be on a $28000 line of credit and that they would suffer harsh prepayment penalties if they paid it off sooner. Their total sum of payments...nearly $70,000. That alone killed the deal and they took it into recission. I hear what Al is saying and it makes a lot of sense. My comments arent specific to mortgages alone. I just hate loan sharking and that seems to be the norm with lenders lately.
My experience with predatory lending came when I received for a loan for Microsoft training courses. I had to take out two loans, one of which had a rate of 15% with an 8.9% origination fee and a 25 year term. My payment was between $65-70 with only $4-5 of it going to principle. Back then I didnt know any better and thought it was the only way I could get the money needed for my technical education. Now, I wish I'd gone through Sallie Mae. To this day I still have that debt and I've refinanced it with a consolidation loan at a lower rate. My girlfriend had run-ins with Discover and Chase and her sister...I just cant comment on because I dont remember all the details.
As to the laws...here in Michigan we are not allowed to give advice or consent on anything we are witnessing. By law I cannot say "Good lord I wouldnt sign this. You're getting ripped off." I can only point and say sign here and maybe explain what a particular form is or what something means. Beyond that, I'm Vanna White with the forms.
In reference to Julie's question about credit unions...yes!!! I looooooove my credit union!! Credit Union...GOOOOOD!!!
Banks....BADDDDD!!!!
As to Darth Nader...please dont ever liken me to him in any way shape or form. Thats just wrong.
Thanks!!! |
