New Jersey Resident Wins Damages Against Predatory Lending Practices

The average homeowner does in fact have recourse against the big banks when it comes to mortgage fraud and foreclosure defense. Goods news comes this past January from a ruling by New Jersey Chancery Judge Peter Doyne that says Wells Fargo committed actionable fraud and predatory lending.

The case involves Oscar Montesdeoca, of New Jersey. Evidently, Montesdeoca was persuaded to borrow $600,000 pus dollars for a three-bedroom home at interest rates that ranged from 7.75 percent to 14.35 percent.

The ruling is considered a significant victory in the battle against predatory lending practices in New Jersey, where another home foreclosure occurs every eight minutes! In the case in question, the mortgage for the home was $4800 a month. However, Montesdeoca earned between $500 and $600 a week, with his wife working for $7.00 per hour. They could not possibly have covered the mortgage, which ended up being $5700 a month, including insurance.

It was determined that the loan officer who worked with Montesdeoca had promised that “if he paid the loan and maintained good credit (for two years) he would receive refinancing” to reduce the high interest rates.

The couple couldn’t read the paperwork, which was in English, and learned only later that the bank listed their income as over $10,000 a month, when it was far from that amount. When the couple’s son requested that the bank refinance the mortgage in order to lower the high interest rate, as the officer had promised, the bank officer never responded.

The good outcome is that the bank was made to refinance the loans, and pay all the couple’s legal fees, as well as three times his damages, as required by New Jersey’s Consumer Fraud Act.

Contact Shaffer & Gaier: Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Source: http://www.responsiblelending.org/tools-resources/headlines/opinion-nj-court-resurrects-american-dream-from-foreclosure-nightmare.html

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