Loan Flipping, Do I Have a Case?

Loan Flipping, Do I Have a Case?

"Caico"	2/9/2004 6:46:05 PM
Dear Attorneys, I was lured into refinancing my home loan in increasing loan amounts and interest rate. The application form clearly states the 1st year interest rate is 1.95% and 2nd year 2.95% and 3rd year 3.95%. And the default interest rate of 4.821% which will apply when I can not make payment on time. Now the loan payment coupon came and the interest rate becomes 4.821%. I can select to pay 1.95% the 1st year but the balance of interest at 2.871% (4.821 - 1.95) will be deferred and added to my principal. At this deferral rate, I can not pay the principal at the end of the loan term. World Savings designed this scheme to take my house! I was paying 3.75% interest rate before refinancing. World Savings has promised to lower my monthly payment by entering 1.95% into a mortgage calculator and hiding the actual interest rate of 4.821% and also hiding interest deferral terms. World Savings' loan flipping practice has forced me to pay $105,386.40 extra interest for the whole term compared to the 3.75% interest I had been paying before the refinancing. Do I have a case against World Savings?



"RPJ"	2/9/2004 5:32:08 PM
What state are you in? "Caico" <caico@pacbell.net> wrote in message news:NzQVb.23059$BK2.11125@newssvr25.news.prodigy.com... Dear Attorneys, I was lured into refinancing my home loan in increasing loan amounts and interest rate. The application form clearly states the 1st year interest rate is 1.95% and 2nd year 2.95% and 3rd year 3.95%. And the default interest rate of 4.821% which will apply when I can not make payment on time. Now the loan payment coupon came and the interest rate becomes 4.821%. I can select to pay 1.95% the 1st year but the balance of interest at 2.871% (4.821 - 1.95) will be deferred and added to my principal. At this deferral rate, I can not pay the principal at the end of the loan term. World Savings designed this scheme to take my house! I was paying 3.75% interest rate before refinancing. World Savings has promised to lower my monthly payment by entering 1.95% into a mortgage calculator and hiding the actual interest rate of 4.821% and also hiding interest deferral terms. World Savings' loan flipping practice has forced me to pay $105,386.40 extra interest for the whole term compared to the 3.75% interest I had been paying before the refinancing. Do I have a case against World Savings?



cj.green@worldnet.att.net (Christopher Green)	2/10/2004 9:01:38 AM
"Caico" <caico@pacbell.net> wrote in message news:<NzQVb.23059$BK2.11125@newssvr25.news.prodigy.com>... Dear Attorneys, I was lured into refinancing my home loan in increasing loan amounts and interest rate. The application form clearly states the 1st year interest rate is 1.95% and 2nd year 2.95% and 3rd year 3.95%. And the default interest rate of 4.821% which will apply when I can not make payment on time. Now the loan payment coupon came and the interest rate becomes 4.821%. I can select to pay 1.95% the 1st year but the balance of interest at 2.871% (4.821 - 1.95) will be deferred and added to my principal. At this deferral rate, I can not pay the principal at the end of the loan term. World Savings designed this scheme to take my house! I was paying 3.75% interest rate before refinancing. World Savings has promised to lower my monthly payment by entering 1.95% into a mortgage calculator and hiding the actual interest rate of 4.821% and also hiding interest deferral terms. World Savings' loan flipping practice has forced me to pay $105,386.40 extra interest for the whole term compared to the 3.75% interest I had been paying before the refinancing. Do I have a case against World Savings? The World Savings loan applications I have seen make it fairly clear that the actual interest rate is 4.821% (or whatever their going rate is at the time) and that on certain programs you can elect to pay a lesser amount or amortize at a lesser rate, with the deferred interest added to your loan balance. They do not conceal their interest deferral terms, in my experience. If your application did not (even in the fine print) disclose that there was to be negative amortization or deferred interest, you might be able to avoid the loan on grounds of misrepresentation. It will almost certainly take a lawyer to get you out of it. Depending on your state, their requirement to disclose the presence of a negative amortization or deferred interest arrangement may be formal and have to meet certain criteria (such as appearing in type of a certain size or appearing on the first page of the application or contract). -- Not a lawyer, Chris Green



"Caico"	2/12/2004 7:22:14 PM
I am in California. Thanks. "RPJ" <RPJ@noemailadd.rpj> wrote in message news:NqGdnaETHsT_l7XdRVn-jQ@comcast.com... What state are you in? "Caico" <caico@pacbell.net> wrote in message news:NzQVb.23059$BK2.11125@newssvr25.news.prodigy.com... can deferral the extra paying

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