Bonhomme
Master Don Juan
Here's the scoop. I'm selling a house, but the mortgage company has charged usurious interest (about 60% annually -- I am not kidding) on the mortgage. They did that by charging interest on a repair escrow they are holding that I've not fully drawn from. So they were charging me interest on a $53,000 loan when they only had actually lent me about $22,000. I did get some draws, so to this point they've actually lent about $35K. But still way short of the $53K they're charging me for.
Since the loan went past the balloon, now they're charging another 1% per month as an "extension fee" plus 18% of the regular monthly payment as a "late fee."
This company (Rehab Funding, of Bala Cynwyd, PA) purports to be legit, and won't go breaking both my legs (LOL), but they are running a scam on property renovators, no doubt.
Don't tell me I shouldn't have gotten the loan, because it was my only option. I need to know what's best to do now, before the sale closes.
If I recall correctly, the maximum interest they're entitled to charge is 25% annual interest. So how do I go about disputing their payoff figures for the closing of the sale? Can I have it put in an escrow account until the dispute is settled?
I don't want to alarm them, or they'll just try to take the house because it is past their unreasonably short (1 year) balloon, and I may not be able to get the sale done. But they'll lose, too, if they do that, because I know they'll get way less for it than their payoff figure.
I'll ask the title company and call an attorney or two, but I'm wondering if any of you have any ideas.
Since the loan went past the balloon, now they're charging another 1% per month as an "extension fee" plus 18% of the regular monthly payment as a "late fee."
This company (Rehab Funding, of Bala Cynwyd, PA) purports to be legit, and won't go breaking both my legs (LOL), but they are running a scam on property renovators, no doubt.
Don't tell me I shouldn't have gotten the loan, because it was my only option. I need to know what's best to do now, before the sale closes.
If I recall correctly, the maximum interest they're entitled to charge is 25% annual interest. So how do I go about disputing their payoff figures for the closing of the sale? Can I have it put in an escrow account until the dispute is settled?
I don't want to alarm them, or they'll just try to take the house because it is past their unreasonably short (1 year) balloon, and I may not be able to get the sale done. But they'll lose, too, if they do that, because I know they'll get way less for it than their payoff figure.
I'll ask the title company and call an attorney or two, but I'm wondering if any of you have any ideas.