In addition to the Note, the "Truth-in-Lending," and the "Federal Disclosure on Adjustable Rate Loans," apparently the government should also require another form called "Now Listen Here You Senseless Git!"
The mistake these people made was believing the word of a real estate agent.
It amazes me that any literate person would sign a loan with a provision to jump the rate 3% at once and then raise it to almost double. I won't feel too bad for the lender if they get stiffed, because it seems like they are taking advantage, but why, why don't people read these things? It doesn't sound like an attorney was needed to figure out what would happen next.
"Gee, honey, it says here that they can double the interest rate. Do you think they might do that?"
"Oh, no, they wouldn't do that to us."