I have been through a nightmare in my life I never wouldn't have believed if I hadn't lived it, because of these greedy bankers, brokers, and enablers. I refinanced in 2005 on my home in Illinois and took out $30k to eventually put into the house in the form of a new kitchen to replace the old 50's style I had and to settle the divorce of my spouse and keep my child at home and keep things stable as I was granted custody. All seemed fine. I had a good job and check stubs and the income tax forms etc.

In other words I played by the rules and was not getting a equity loan that I could not afford as is the worn out excuse you hear about...people went and took out loans that they could not afford. We know now that that is a bunch of B.S. Actually the banks and brokers were doing anything they could to SELL these loans by saying and adjusting and authoring the forms to make you unwittingly sign off on a lending instrument that gave the broker the highest immediate cash commision as possible, to give the brokerage owner the highest amount of profit when selling off the loan within 30 days to package it into securities amonst the other bad loans. The trouble is the loan would be unaffordable within 2 to 3 years and they would expect to foreclose and resell the property from under you. What they didn't count on was that the get rich quick scheme would pop in 2007-2009.

Well mine was as it turned out an "Option-Arm". The loan as it was, was actually illegal. But I learned something very enlightening after a long court battle in Federal Court. The courts are very hesitant to enforce the laws on the books, such as the Truth In Lending Act of 1968, revised and softened in 1993. The lenders knew this, and went ahead and did anything they wanted to. Look it up! You very seldom hear about it in the press or the politicians speeches, and that is no accident. The broker had conveniently left out at least a half dozen required sections of the loan docs in order to keep borrowers from smelling a rat and backing out of the loan. When I asked questions about this seemingly great loan that could keep my payments close to what I was paying before the loan by extending the terms and lowering the interest rate it was smooth talking and reassurances that were reminiscent of used car shopping.

I realized the scam when I was supposed to...after I received a couple of statements. Of course I thought it was too late and I was not sure yet what I was into even at that point. I made calls over the next 2 years to try to get some answers to no avail. It wasn't until late 2007 that I finally heard the way to get out of this loan that was increasing over these months to higher and higher interest rates and in turn higher and higher payments of interest and principle. They told me "either default on the mortgage" or pay them nearly 10k to be allowed to get another loan from somebody else.

I was floored, and thought this was an isolated situation I was in, alone. The news and info about the mortgage bubble was not yet around very much and then it was "Sub-Prime" problems that did not match my circumstances at all. I was urged by freinds and family to have the documents looked at by an attorney that was into this type of law to find out if I was really expected to fork out blood money to refi out of such a rediculous loan. I had the documents "audited" by a qualified attorney and found out that at least a half dozen violations of Federal Consumer protection laws were violated in my documents. You do not hear advice from too many financial advisors on cable news, network news, etc. that advise you to get these fraudulent loan documents audited. It is very strange because it is the most important thing you can do first before you do anything, once you realize that your loan is creeping into range of unaffordability. Figure that it is goofy that anybody would lend using terms that would eventually make the loan double and make it impossible or ludicriss, for the borrower to pay back. Well I went ahead and went with the attorneys advice..."Take them to court"!

I must say that after taking the steps neccesary to prosecute these shabby financial institutions (that are now tattered and exposed as the embarrassments they truly are as their CEOS sit on the stack of dough they made during the years the scam played on!) I know at least I am still ok and am better off than the masses that were not informed and all they thought they could do was walk away from their homes. The courts won't prosecute TILA it seems, but they will force the financial institutions to give you a livable settlement in the form of a modification that most likely is better than you would have finally negotiated with them without having brought them to court. It is the most nail biting 15 months I have ever been through as far as financial situations go for me. But...much better than finding my family with no home to live in.

So educate yourselves and if you think your situation sounds simular, find an attorney that is able to do loan document audits, then if TILA laws are broken you can bring them to court. Don't expect them to prosecute, but to make them settle with better terms. I beleive that they are not prosecuting now is to protect the banking industry from getting a tarnished image or something equally as stupid. Don't let these sharks get away with it. It is actually better for them and you because you stay in the home until the rescession/depression blows over and they have somebody living in the property paying them and keeping it up. So I hope more learn about the better options they have that are being kept hush hush and go see for themselves.

Best of luck

- Anonymous Lady