Question: Our appraiser miscalculated our home square footage, which thus got us approved for a loan we shouldn’t have been approved for. We ended up going into Foreclosure. Do I take legal action against the Appraiser or Lender? Would a Real Estate Attorney be able to help?
Response: Predatory lending is a term used to describe unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. Typically, predatory lending occurs on loans backed by some kind of collateral, such as a car or house, so that if the borrower defaults on the loan, the lender can repossess or foreclose and profit by selling the repossessed or foreclosed property. Unethical lenders may be accused of tricking a borrower into believing that an interest rate is lower than it actually is, or that the borrower's ability to pay is greater than it actually is. The lender, or others as agents of the lender, may well profit from repossession or foreclosure upon the collateral.
If you believe you have been the victim of predatory lending, federal agencies such as the U.S. Department of Housing and Urban Development may be able to help.
In addition, please consult with a Real Estate Lawyer to determine the best course of action.
Response by Jason Tong
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