Legal Question in Real Estate Law in Maryland

Foreclosure

In 1999 I purchased a home with a FHA loan. The loan amount was $175,500 and my income at that time was $35K per year. I am married, however, my husband (due to credit problems) is not listed on the mortgage. My husband has been quiet ill and I am having trouble meeting my obligation. My question is this....I believe this was an illegal loan due to my income - the lender made me borrow funds for the closing costs and charged me finance charge and I believe I have been set up to fail. I want to keep my home, but my credit has been so damaged by this - that I can't even refinance. Any help for me?


Asked on 7/22/01, 11:14 am

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Foreclosure

There have been instances of lenders who "con" unqualified homeowners into taking on loans they know will end in default and foreclosure, but I've never heard of this happening in an FHA loan program. Since the federal government has to guarantee FHA loans, they don't work with unscrupulous lenders.

Some lenders work with mortgage brokers who help restructure loans that have fallen into default so that foreclosure can be avoided. You should inquire from your lender if such a program might be available to you.

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Answered on 7/23/01, 2:58 pm


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