For once, I’d love to read a story about mortgage loans that actually makes you feel sorry for the people it talks about.
This is not one of those stories:
WHEN Gregory and Paula Sherman wanted to refinance the mortgage on their ranch-style home in Chattaroy, Wash., near Spokane, in June 2003, they went to a local mortgage broker.
The broker got them a $267,200, 30-year loan at an 8.5 percent fixed rate with NovaStar Financial.
Or so they thought.
The good-faith estimate that the federal government requires mortgage brokers to give to all customers said that was the deal.
But at the closing, the Shermans were handed loan documents for an adjustable-rate mortgage with a higher initial rate, of 8.625 percent, that would reset in two years.
They reluctantly signed the documents because they had pressing commitments to pay debts and home renovation contractors.
They signed the documents …
They signed the documents …
They signed the documents …
This was a refinance. That means they weren’t faced with potentially losing out on closing on their own home. There was nothing keeping them from walking away from the closing table, right then and there. Nothing stopping them from taking a day or two to figure it all out, or from taking a week or two to find another lender.
These unfortunate souls are now suing their mortgage loan company.
I couldn’t read the rest of the story. It might be worthwhile, I don’t know.
Borrowing Trouble – By Gretchen Morgenson and Julie Creswell, The New York Times
Back to Boston condos for sale homepage
Contact me to find out more about this property or to set up an appointment to see it.
SEARCH FOR BOSTON CONDOS FOR SALE
For more information please contact one of our on-call agents at 617-595-3712.
