Hard money fees please help

[Anthony Lewis]

I got a hard money loan from a well known lender in my area.

He says i need 12000 down i said ok. 3 days before closing he adds another 7500 for his fees. The lady who works for him could not believe it. I got the loan remodeled the house and called him to email me a pay off. Now theres another 7500 fee saying deferred interest and i paid it in the beginning. And now another fee for 12,250.00 says total attorney fees collectible under note 24500 and oh they only want half. Im really pissed off i remodeled the house and now they are trying to take all my equity in fees please help. This is what attorney senrlt me word for word "If you read the terms of the note, you will see that it allows for the statutory 15% fee when the loan is referred to an attorney for collection. That is not what our firm charges – that is what the lender is allowed to collect under the terms of the note. The fee does not have anything to do with the closing. It is not practical for a closing attorney to cover every single term of a loan at closing; furthermore, our job is to represent the lender." Are attorneys allowed to do this?

[Alex Deacon]

@Anthony Lewis if what you are posting is correct and accurate then I would first of all never use this lender again. I would also get an attorney and see if there is a way to sue him for possible usury which is lending money at exorbitant rates. I would also threaten to report him to any and all local real estate groups and pass around his name as being a complete rip off. We buy and sell 40 plus homes a year in my market in Pittsburgh so this kind of thing happens all over the country and I see this from time to time and it is really a shame and in my humble opinion not a very good way to do business. I wish you the best and let us know what happens.