Predatory Lending at its Worst

Alexandra Tracy-Ramirez

Practice Area:Foreclosure

Outcome:Principal reduction back to the original 2006 amount of the loan, permanent loan modification with lowered interest rate.

Description:Our client is an elderly widow who fell victim to a predatory lending scheme. A scam company representative called her every week for months to befriend her, win her trust, and dupe her into refinancing her house at a 16% adjustable interest rate. Her name was forged, her assets overstated, and she never received her required disclosures. This case spanned almost 3 years as we fought in bankruptcy court, superior court, and finally in federal district court against the scam company and the servicers and bank that took over the loan after scam company went out of business. The case settled and our client and her daughter will be able to keep their family home.