I was a first time home buyer and used a company called Source Lending in Brooklyn Park, MN to refinance my high-interest home loan. I had only lived in the house for 1 year, but wanted to consolidate some debt and take out a small amount for remodeling.
The broker set me up with an appraiser and a mortgage company (HSBC Mortgage). The appraiser valued my home at $185,000 - a growth of $50,000 in one year! Being that the growth was more than 25% of my original loan, and I had not done any work, I decided to ask my broker more questions.
My broker assured me that I had stuck gold and encouraged me to continue with the loan. I borrowed $164K to pay the existing loan, etc.
Not 2 months later another mortgage company called me and advised me that I had taken a "Band-Aid" loan and was in danger of high interest rates. They said I should refinance -AGAIN!
I tried to sell my house at that point - nearly a year after it had been appraised at $185K. I added egress windows, finished the downstairs bathroom and listed it for a very "conservative" price in the $170's. After 4 months on the market, I had no offers and only 3 showings.
I was swindled. I had no choice, but to accept a forclosure. HSBC will give anyone a huge loan - DON'T TAKE IT! Be cautious of predatory lenders and don't make the mistake I made!
0 comments