AARP SAYS SOME BORROWERS MAY BE PROTECTED FROM FORECLOSURE
April 10, 2009
Can your home be foreclosed if you did not qualify for the loan in the first place?? The State of Massachusetts ruled NO.
Loans that sounded too good to be true … No document, no income qualification, easy approval, and a low low “teaser” interest rate. Many of the homeowners couldn’t afford the loans they were offered. When the adjustable rates soared after two or three years. the threat of foreclosure skyrocketed.
But the State of Massachusetts Attorney General said “no way”. After winning a series of lower court decisions the State Supreme Court found that many of these loans packed such a combination of unfair and deceptive terms that homeowners could be protected from foreclosure because the actions of the lender involved in the suit was unfair and illegal.
What does this mean to you? If you are having trouble repaying an adjustable-rate mortgage, contact the attorney general’s office in your state. Several other states already have lawsuits pending against subprime lenders.
