Mortgage rate over 12%???

[tseas930]

My Mother-in-law purchased a home in Ohio in 2006. The Mortgage broker placed her with Option One (Wells Fargo) with 2 loans. The first mortgage was for $60k 12.2% interest and the 2nd was for $10k at 14% interest. Are those rates acceptable under lending laws or was she a victim of predatory lending or fraud of some kind? She only makes $25k a year and has been unable to make payments for quite some time. The house was in foreclosure but the bank dismissed the case. The loan is now serviced through Ocwen and I really don't know if I can trust them based on what I have read online. Now they seem willing to negotiate and possibly modify her loan. What should she do?

 

[swalsh411]

Does she wish to stay in the house?

 

[tseas930]

Does she wish to stay in the house?

yes, she would like to stay. She left the house after getting foreclosure papers over a year an a half ago but and found out the foreclosure was dismissed 9 months ago. At the same time she was getting charged by the city for yard maintenence and started getting delinquent tax notices in the mail. She has since moved back in (after repairing damage from copper thieves. Hope their $10 bought them something nice)and is repaying back taxes and maintaining the property since she could afford her apartment and paying taxes and upkeep on the house. She has been contacted by Real Time Solutions about the mortgage but they did not call her back when they were supposed to. Does she simply ask them what they can do or should she make them an offer at terms that she can afford. If they woudl Refinance or modify her loan to a reasonable rate she could afford it. But 12.2% and 14.3% is out of the question. She could afford the payment if the interest was in the 6% area. If she were to offer them the principle amount at 5-6% interest, would they work with her?

 

[OHRoadwarrior]

Not to be presumptuous, but perhaps the possibility exists you and hubby can purchase and finance the home for her or co-sign.

 

[tseas930]

Not to be presumptuous, but perhaps the possibility exists you and hubby can purchase and finance the home for her or co-sign.

We have considered buying it from her but it would need to be at least a year. Her house was our home for nearly 6 years but due to my loss of employment and then a couple years of under-employment our credit took a hit. We are rebuilding but are not sure how soon we could buy and if we want to buy her house due to location and schools. We are considering it though.