Quit Pointing the Finger At Subprime Loans

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by: Benjamin Dover
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It’s official: Subprime borrowers aren’t the sole “culprits” for the economy’s current real estate-driven debacle.

According to data released by the HOPE NOW coalition on Wednesday, foreclosures were initiated against 105,000 “prime” borrowers in July, versus 92,000 subprime borrowers during the same period.

The banking world’s definition of a prime mortgage loan is one that’s regarded as being a low default risk, made to borrowers with good credit records.

“The mortgage industry’s reckless lending practices over the last nine years have now reached critical mass and are about to take even more innocent homeowners down the drain—unless they wake-up and fight back!” says investigative journalist Benjamin Dover, creator of a new consumer-friendly website, www.VoidMyMortgage.com.

Dover points out that the number of “prime mortgage” foreclosures is more than double what it was a year ago, up from 51,000 in July 2007. He thinks it’s going to get a lot worse before it gets better, and offers a solution for homeowners who think they’re trapped in a mortgage: “Distressed homeowners already have plenty of legal firepower on their side and it was simply a matter of time before they got mad enough to go on the offensive against their mortgage companies for setting them up to fail”

He says that four federal laws that have been around for decades give homeowners extraordinary negotiating power and leverage against mortgage companies suspected of engaging in predatory lending practices. “The Fair Housing, Truth In Lending, Equal Credit Opportunity and Real Estate Settlement Practices Acts will level the playing field for millions of American victims.”

Dover urges distressed homeowners to analyze their situations and get aggressive early in the game, long before their payments escalate out of sight and become impossible to make. Here are his Top 5 Red Flag Warning Signs that indicate you could be the victim of predatory lending and as a result, in an illegal loan: #1 Your loan was an Adjustable Rate Mortgage, or an "ARM". #2 Your monthly loan payment has increased more than $200 in the past year – or – if your monthly payment will increase by more than $200 in the next six months. #3 If your loan has a pre-payment penalty longer than three years. #4 If your home was originally appraised for a higher value than homes were selling for in your neighborhood. #5 Or, if your Realtor or title company steered you to a specific mortgage company.

If you answered 'yes' to two or more of these questions, Dover says you may have a predatory lending case against some or all of the players who financed your financial nightmare. And he warns homeowners who are being contacted by their mortgage company about re-writing their loans need to be extremely skeptical.

“Before you jump on offers to reduce your principal balance and re-write your loan, consider who put you in the financial mess you’re in in the first place. You’re not really going to trust them to give you the best possible deal and rewrite your loan, are you?”

Dover’s VoidMyMortgage.com has retained Dr. Gary Lacefield, one of the nation’s leading experts to handle mortgage audits for distressed homeowners. A former enforcer for the Department of Housing & Urban Development (HUD), Lacefield personally negotiated and drafted the six largest lending settlement agreements in HUD Civil Rights history, totaling over $10 billion.

Dover and Lacefield’s plan to save the American dream is simple. “Our goal is to re-write or “recast” these illegal loans. “We want to help keep people in their homes,” says Dover.

About the Author

Dover's written two best-selling books. Life After Debt: The Blueprint for Surviving In America's Credit Society and Back Off! The Definitive Guide To Stopping Collection Agency Harassment. His popular column, Ask Ben, appeared weekly in The Dallas Morning News from 1998 – 2004 and his expert commentary, advice, tips and strategies have been featured in some of the nation's leading newspapers and magazines for almost two decades.

As investigative journalist, radio talk show host, best-selling author, newspaper columnist and television correspondent Benjamin Dover is on a mission to teach Americans some real life survival skills. He's been opening the eyes of consumers since 1992, covering the hottest issues of the day and a diverse array of everyday, common-sense topics with his colorful, no-nonsense brand of common sense and scorched-earth street smarts. His latest ventures, VoidMyMortgage.com and NowWhatDoYouDo.com educate and empower financially-distressed homeowners about their rights, helping them to determine if they are a victim of predatory lending practices.

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