private loan made - loan agent blew it
I used my investment money (before the real estate market blew up) to help on a 2nd trust deed for a gentleman that was losing his home and car due to medical problems. He was better now but would lose everything unless he could borrow money. So I agreed to loan him money for 6 months at 12.9%, APR 18.776%. It now looks like this triggers it to be a HOEPA loan. He has a lawyer and is looking to rescind the loan and get punitive damages. Now that I have read up on HOEPA it looks like the loan officer made some major errors. (balloon payment, high interest, no notice that borrower could lose his home)
Borrower has NEVER made a payment and attempted to refinance with another lender but was refused.
If no payments were ever made is the borrower in the right? Any other advise? Thank you.
Re: private loan made - loan agent blew it
It appears that you made a private loan utilizing the loan broker as a go-between. Was the loan broker your agent, the borrower's agent, or both?
Your story is an example of no good deed going unpunished. Nevertheless, you should hire an attorney to review the loan documents, advise you of your rights and exposure, and guide you in responding to your borrower's attorney.
Naturally, we cannot give you legal advice without being retained and examining the relevant documents.If we can be of service, call us.
