New York Foreclosure Lawyer: Predatory Lending

What is predatory lending?

When mortgage lending resolves in a major impact on a borrower's situation because it is imprudent for the borrower and/or because it is grossly over the cost necessary, it is considered to be predatory lending. The reason it is so difficult to find a viable solution that will remedy rather than worsening the situation is because most predatory lending is simply the distortion of a legitimate venture.

Predatory lenders oftentimes take advantage of a borrower's ignorance concerning how a mortgage actually works, as well as other weaknesses a borrower may have. Another borrower issue that proves useful to the predator is shortsightedness, especially in the scheme of payments; when a borrower succumbs to "payment myopia", it means that there is a propensity that the borrower will focus on initial payments while failing to consider the likely possibility of higher future payments. A common trait that accompanies payment myopia is to be "balance blind", which refers to the inability of a borrower to see further into the future. Predator lenders will first present low initial payments to draw the borrower in, and then decidedly pile on outrageous fees into the loan balance. Before the borrower knows it, he or she has become the prey, a victim of predatory lending.

A common trick used to reel in an unsuspecting borrower involves putting free cash in his or her pocket. An unenlightened borrower will happily take the cash, but it certainly begs the question: why is a mortgage lending company giving me cash when I should be putting down payments? The answer is, while the borrower is excited about the situation, the cash he or she pockets will just run up the home equity meter. Only trusted legal counsel should be engaged to understand these issues, and help you to come to the conclusion that one has been taken advantage of via predatory lending . If you or a loved one suspects that a mortgage loan is predatory, it is extremely important to get in touch with a Long Island foreclosure defense attorney. It may be possible to file a claim against a lender who has violated the federal Truth in Lending Act or other state or federal laws, leading to a money judgment for you, as well as paying your attorney fees.

Get Help from a Long Island Foreclosure Lawyer

There are many other circumstances that may indicate predatory lending, many of which are very difficult to pinpoint. Blutter & Blutter has gained over 50 years of experience dealing with predatory lending and a variety of other foreclosure situations. Our firm is not only small enough to ensure an individualized approach to your case, but it is big enough to confront the larger and more challenging cases.

Don't let predatory lending take advantage of you. Contact a Long Island foreclosure attorney today to get the legal counsel you need.