Posted on 05/03/2006 9:59:27 AM PDT by BurbankKarl
Another far more complex, very innovative (but allegedly criminal) predatory tactic involves predators creating and exploiting conflicts of interest among the various purchasers and servicers of a pool of mortgages, through frivolous foreclosures of performing loans, and legal barratry contrary to fiduciary duty that are extremely profitable for the predators. Citing, Super Future Equities vs. ORIX
How common do you think that is? And who are these predators? Whoever they are, they certainly are not the mortgage holders.
I'm not saying it never happens (or will never happen) but the paragraph you cited does not indicate this has been or will be more than a blip.
Yes, I believe the mortgage company is prohibited by law from demanding more than the amount on the note. And that amount is not demandable unless the house is sold. Other than that they may only demand PITI each month.
I don't have time to double check right now, but I believe callable mortgages were outlawed after the Great Depression, when so many people lost their homes to unscrupulous lenders.
There are many lending practices that are outlawed. But not in every state. Oregon, for example, has no law making predatory mortgages illegal. Some exotic practices that would be illegal in South Carolina are lawful here. I have not looked up the term "callable mortgages" either. But anytime the loan amount exceeds the value of the property that fact alone might be considered to be 'asset waste.' Therefore it may constitute breach of contract.
Googled all over the 'net and couldn't find any references to callable loans being in use today. I did find three references to callable mortgages being outlawed by Congress because banks running short of money during the Depression called in mortgage loans to raise cash. This is federal, not state law.
According to my research, the only time mortgage loans are "callable" is when the buyer is in default, not simply when the collateral has fallen in value.
I thought these were the people who were bragging about being the financiers for the baby boomers - who were going to retire in style .. or some such drivel.
.... or do I have these people confused with some other finance group which also recently appeared on the scene ..??
I work for a mortgage company. We regard ameriquest as scum. they overinflate home values so that when they take cash out, they end up flipped over (they owe more than the house is worth.) they have so many class action suits against them right now. they train their l.o.'s to bait and switch and turn them loose. they don't explain anything to their customers. then people are ticked and sue.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.