anon
Miami,#2Consumer Suggestion
Wed, January 15, 2003
hello-- Your best option would have been to walk out of the escrow signing when you saw the different terms. You, as a borrower, are entitled to look at the HUD-1 statement one day prior to closing. These changes should not have been a surprise to you if you took advantage of that one day form review. This is not unusual with sleazy banks. They do know what they are doing, and they are betting on the high pressure environment of a closing to allow them to get away with it. Their attitude is "if you want the house, you'll sign". I don't believe you would have lost your deposit if the terms of the deal were different. I believe the term in predatory lending language is "packing", packing in fees, and little surprises into the closing statement. It is a rip-off, but not necessarily illegal depending on whether or not the bank followed disclosure laws and you asked for or received contrary information (or no information at all, in some cases). Consider filing a complaint with HUD. Look up your rights as a mortgage borrower under "RESPA" "Truth in Lending" and "predatory lending" on the internet. There are many disclosures required to be given to you at various times by the bank. Check the HUD website, the "your rights as a borrower" section to see if the bank upheld their end of the bargain. If not, file a complaint with HUD and your state Attorney General's Office. Some states (and some cities) have good predatory lending laws in place. Check to see if your state has those laws.