12 Apr How to Stop a Predatory Lender
Did you know your lender can take away your home?
Unfortunately, it’s a lesson some homeowners learn the hard way.Take the case of Laura Laing and Glenn Gourley of Toronto. Their plan to flip two real estate properties almost left them – and their five children – broke and homeless.
Laing and Gourley worked hard. They had good intentions. But they realized too late that they were dealing with a predatory lender. Complicated financing agreements made it hard for them to meet their payments. That’s when their lender pounced, issuing one outrageous fee after another. The fees quickly added up, jumping by thousands of dollars at a time. Within a few weeks, Laing and Gourley were afraid they would lose everything.
Unfortunately, Laing and Gourley are not alone. I meet homeowners trapped in this type of situation on a regular basis. The biggest culprit for these financial troubles? Borrowing from the wrong lender.
Traditional lenders, like banks and credit unions, can’t charge such ridiculous fees. They are also required to follow a clear protocol when it comes to missed mortgage payments. Traditional lenders want to protect their money, but they also give homeowners a chance to fix the situation.
Predatory lenders don’t play by the book. They are unscrupulous, making deals that carry high-interest rates and even higher fees. They lock borrowers into agreements that strip them of their home equity. A predatory lender’s actions are deceptive, fraudulent and unfair to consumers.
The good news for Laing and Gourley is that they got help. They contacted me to see if there was anything I could do to stop their lender from taking their home. They also reached out to Global News, which ran their story. With our help, the couple sold both investment properties. We were also able to have their fees reduced by more than $300,000. Laing and Gourley are now able to stay in their home, thanks to a new mortgage agreement.
To read the full article written by Sean O’Shea, Consumer reporter for Global News, please see Predatory lender could take your house in a power of sale. The article includes a link to the television news segment broadcasted on Global News.