14 Nov Mortgages too complex for lawyers
I got a real thrill this week when a mortgage lender’s attorney who had objected to my client’s Chapter 13 plan on the grounds it had the wrong amount for the mortgage payment going forward, had to admit before the court that he had the wrong number for the monthly payment.
Apart from the satisfaction of having pomposity brought low, the incident points out a recurring theme in mortgage servicing: with payments that adjust every six months, or every month, there is no assurance that anyone will know what is due on a mortgage at any point in time.
There are a huge number of these adjustable, exploding mortgages out there. Borrowers either in desperation or self delusion, signed on to terms that are almost assuredly fatal to continuing home ownership. Absent legislative help, borrowers will have to look to Truth in Lending or RESPA rights to gain some leverage to negotiate a better outcome than foreclosure.
Come back for more on your mortgage rights or visit our companion site for insights on bankruptcy and mortgage issues.
Cathy Moran, Esq.
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