I have a subprime lender that is trying to force me into a closing on a property they know has many problems, but mostly the loan terms have not been given to me! I have no cash to close, I have no payment schedule, interest rate, NOTHING!!! The lender recommended his attorney because I did not have one. I KNOW MY MISTAKE. His other buddy is the real estate agent on this deal. The lender attracts investors that cannot qualify for multiple investment properties. They prey on the fact that conventional loans are pretty expensive and their new rules make it very hard to grow a portfolio without having all cash to close deals. We have$35,000 in liquid reserves on a full ask offer of $99,900. The lender has orchestrated the situation so that I cannot escape the deal without losing my earnest money or accept their terms BLINDLY. I do have a contingency. We have a new lender. We are pre approved, and I also have a new realtor. They are trying to force the closing for Dec 2nd. The loan has astronomical interest (12%) 2 origination points, interest only, 12 mos. (he also claimed to have along term loan after the rehab loan, of course we never were given that info after many requests.
So the Lender is a mortgage company but you keep suggesting the lender is an individual? Sounds like you signed some agreement and you do not reference what the earnest money is, if it is a bad loan like you say then do not accept it then it becomes an issue of your earnest money, more of a potential breach of contract type. Also it is not clear if you are suggesting the earnest money is in relation to real estate purchase agreement or are you suggesting the lender had you pay a sum upfront for the loan that you are trying to get back.
But you really need to consult with an attorney in relation to any paperwork you signed to get proper advice. You have not received a loan to this point so I do not see how you are suing any lender for a predatory loan you are not accepting.
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