FHA lending is the only way to go. Credit company can help restoring her credit up to $99 monthly. Fico scores can get higher need 513 mid score or higher

Sounds to me like your friend is a victim of her own credit situation not predatory lending. She should be using the five years she has obtained to stay in her home to improve her credit and obtain long term financing. The loan she obtained has allowed her to remain a home owner and given her a chance to make a change for the better in her life. Take advantage and make that change. Good Luck

Maria, this situation is becoming more and more prevalent as we continue to move through this economic crisis--chances are your friend had other options than to go with this lender, so you are correct to be inquiring what steps she might take now to save her home.

My best advice would be to seek legal advice, not to continue with this situation--if she waits until that balloon matures (read: pops!), she will be out of a home!

An interest-only loan translates as nothing more than guaranteed rent, btw--think about it--this is a classic example of predatory lending, but only an attorney would be able to tell you for sure, once he reviews the documents.

Good Luck!

That is a standard rate in range with many hard money lenders. It sounds like because of her poor credit and possible lack of documented income, she only had a choice to go with a hard money lender.

Is she able to prove income now and is her credit over 570? If so she should be able to cut her rate in half.

If you want to discuss, please call or email me,

Andrew Kashella 727-331-8400

akashella@TLTLoans.com

Contact the Department of Commerce in your state. Ask for the Usury interest rate limit in Florida.

I don't know if this information is actual:FLORIDA, the legal rate of interest is 12%; the general usury limit
is 18%. On loans above $ 500,000 the maximum rate is 25%.


I believe the Usury rate only applies from Person to Person, or Company to person but does not apply Company to Company since companies should be smart enough to know what is the best for the company.