Dodd-Frank & Private Lenders on Owner Occupied House
New Britain, CT · Member since 2017 · 23 posts · 1 vote
If a private lender (individual, not a licensed lender) violated several Dodd-Frank regulations in giving a 2nd mortgage, what would happen if the lender tried to foreclose?
Violations include:
"Lender" knew "borrower" was an owner occupant
Lender did no credit check.
Lender did no income check.
Lender is threatening to start foreclosure process after 7 days late on 1 payment.
Lender knew the funds where going to be used for personal expenses and not business/investing expenses.
Lender made the loan in the name of a private individual, not an LLC.
Thank you in advance.
Let me know if there are any questions please.
If you read this thread, you would see multiple times where I said I will be talking to an attorney after doing my own due diligence.
Posting on this forum was apart of that due diligence. So far I have received only "guesses" from "loan originators." If someone gave me a concrete answer w/ a sample case to highlight the answer, I wouldn't debate with them.
Instead, I am being met w/ people like you that don't have a clue as to what the answer is, but they decide to spew anyways?
Again people, if you don't have experience w/ this situation, please don't respond.
Um...yeah...we all (Most of us) do have experience with this. My experience with this type of situation is that there is usually some guy that trolls the internet looking for ways to say, "Hey...I was stupid...how dare you lend me money and expect me to pay it back"...and then look for people to rally behind them and support their cockamamie idea that somehow they are the victim. They then go and half read Dodd-Frank (Like you can half read something that long and complex) and then claim they have the laws and rules to spank the dastardly lender and again, look for people to rally behind them and support their tyrannical claims and views that again...they are the victim. They then try to go find some attorney to take their case on contingency because its of course a slam dunk and hey! Maybe they'll even make it a class action claim and they'll get rich off of it and then when no attorney wants to engage the delusional potential client, that guy then goes and flames and threatens all of the attorneys on as many social media platforms as possible because OMG...they are a victim and they have rights and they should be represented for free!
...but that's just me. I'm sure your a victim here and I'm sure you went into this contract with eyes wide open, with full intentions of holding up your end of the deal and that this predator was intending on screwing you over from the get go.
There are too many details and exemptions. You should ask for a legal advice and have an attorney review the files before you can get an accurate answer.
On another note borrowing the money then trying to find a way of how not to pay is going to distoy any future loan options with this or another private lender. Not to mention a foreclosure record which you will have to disclose and explain to every single lender including the banks.
@Account Closed - from what I'm inferring from your posts, this is the breakdown:
You have bad credit, took out a second mortgage from a private lender that isn't licensed or regulated, didn't pay that individual, and then when he had the audacity to demand payment, started publically calling him a predator, loan shark, etc., are now you are trying to find a legal loophole to not pay because you don't feel the contract should have been legal - even though you agreed to the terms. Does that sum it up?
Be careful who you deal with either as a lender or borrower. Violating DF can have some serious implications for a lender. Generally speaking, a borrower has a certain amount of grace days before they get his with a late fee or worse. If you entered into the contract, knowing your obligations, you might want to consider those regardless if the loan was "legal" or not. Years ago people sued banks claiming the bank should have never given them the loan. The meltdown in 2007 was partly due to lax lending regulations. However, the borrowers SHOULD have known what they agreed to.
@Account Closed I am not an investor, nor am I ignorant. I am a lender that is licensed by the States of Maryland, Pennsylvania, Virginia, and the District of Columbia. I also must maintain my licenses by constantly updating my continuing education. I am certified to give mortgage advice and I do not take that lightly.
I am not a lawyer, and this is not the forum for asking legal questions. Even if I were an attorney, I still would not be YOUR attorney. Stop looking for legal advice on this forum and consult with a local attorney that specializes in landlord disputes.
@Michael Cohen I will be sure to contact the licensing boards of all the states that you are licensed in.
I will give them your license # and let them know that you are siding w/ predatory lenders on a public forum. They should know that their "loan originators" have low morals.
Since it seems to me that you don't have the capabilities of answering my question, it would best be advised if you just don't respond at all. You are cluttering this thread with your nonsensical answers.
This isn't a landlord dispute you numnuts. But you where too busy being almighty and upstanding that you didn't realize that.
I posted in this forum as it relates to foreclosure, because that is what I could be facing.
Nowhere in my statements did I say I didn't intend on paying the lender. You made assumptions instead of answering the question that you clearly don't have an answer to.
Carry on.
This will be my last comment/response on this conversation: At no point did I "side" with a predatory lender. My advice was, and continues to be, consult with an attorney.
You've spent a lot of time piecing together some rules that may or may not apply to you, but my opinion is, your time would be better spent engaging an attorney. You seem to be wanting to hear from someone that is going to tell you what you want to hear, instead of maybe what you need to hear. You want to hear that this "lender" defrauded you. That may or may not be the case but instead of threatening people on this board, why don't you just take your grievance offline and talk to an attorney?
If you read this thread, you would see multiple times where I said I will be talking to an attorney after doing my own due diligence.
Posting on this forum was apart of that due diligence. So far I have received only "guesses" from "loan originators." If someone gave me a concrete answer w/ a sample case to highlight the answer, I wouldn't debate with them.
Instead, I am being met w/ people like you that don't have a clue as to what the answer is, but they decide to spew anyways?
Again people, if you don't have experience w/ this situation, please don't respond.
Um...yeah...we all (Most of us) do have experience with this. My experience with this type of situation is that there is usually some guy that trolls the internet looking for ways to say, "Hey...I was stupid...how dare you lend me money and expect me to pay it back"...and then look for people to rally behind them and support their cockamamie idea that somehow they are the victim. They then go and half read Dodd-Frank (Like you can half read something that long and complex) and then claim they have the laws and rules to spank the dastardly lender and again, look for people to rally behind them and support their tyrannical claims and views that again...they are the victim. They then try to go find some attorney to take their case on contingency because its of course a slam dunk and hey! Maybe they'll even make it a class action claim and they'll get rich off of it and then when no attorney wants to engage the delusional potential client, that guy then goes and flames and threatens all of the attorneys on as many social media platforms as possible because OMG...they are a victim and they have rights and they should be represented for free!
...but that's just me. I'm sure your a victim here and I'm sure you went into this contract with eyes wide open, with full intentions of holding up your end of the deal and that this predator was intending on screwing you over from the get go.
@Account Closed
Like everyone else said, you need to hire your own lawyer for litigation matters.
With that said, Dodd-Frank is one of those laws where I'm convinced that there is not even a single person who understands all the parts to it. As a former banking lawyer, I have some understanding of certain parts of it. But I don't think anyone on BP can really give you the advice you want.
I honestly can't even say for sure that Dodd-Frank would apply in your situation just based on the facts you wrote. I haven't checked it in a bit, but I think Pennsylvania has a de minimis exception for folks who make less than three mortgage loans in a calendar year. No idea what's the case is in the area where your property exists.
So hire a lawyer. I would say the first thing to check is if there are even any "private cause of actions" for the alleged Dodd-Frank violation.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.
Hire an attorney. Internet debates won't solve anything.