How to stop wrongful foreclosure - Predatory Loan & Seller Failure to Disclose

[cleegbs]

What is the name of your state? California
What is the name of your state? California
DESPERATE - Please forgive if this is confusing & long - trying to find statutes to stop a wrongful foreclosure (Predatory Loan) Single Mom w/ 2 mentally disabled boys (11 & 21) - had 12 month lease w/private owner of 2bd/2ba condo ($1650/mo). 2 months into lease, owner says he has to sell (job transfer) & says I can either move or stay w/ lockbox & show property, then move. When I decided to move, owner suggests I purchase. Owner knows my credit & income situation (disclosed w/lease - credit score 540, income 50K/yr, no savings). Suggests my father help (was willing to cosign on lease if needed - 75 yrs old, disabled - FICO 781 - Monthly Income $1900 (SS & pension), 13K CD's (BofA) - no other real property) Seller had his 'buddy' loan officer (American Home Mortgage) contact me - gave him my info & my dad's. After running credit, he says no way for me to be on loan but my dad could get great deals. Loan was supposed to be 1st time Homebuyer Program. Original sales price $389K - increased by loan officer to 402K to cover 'closing costs'. Did not receive loan application, good faith estimate, etc. until loan docs fedexed to me - was told had to be signed that day & fedexed back or penalty to seller - MY DAD & I WERE SO IGNORANT - must admit I did not read and/or understand all docs - relied on what loan officer had said - Dad signed all 'tabbed' pages & had notorized - Loan closed 1/28/05 - 70% 1st $281K I/O 1 month LIBOR, pymt $879/mo; 30% 2nd $120K P&I fixed @9.875%, pymt $1020/mo; HOA fees $250/mo. 1st Payment adjusted 5/05 to $1407 (6%) - went up every month after - now at 8.3% (approx $1900/mo) - no impounds - 9/05 received Supplemental & Regular Tax bills - total $7500. 10/05 - notified by HOA of 'Special Assessment' of $8500 due 2/1/06 - Seller did not provide any info on HOA that I found later he was supposed to - tried to refi, but not enough equity due to 1st, 2nd, taxes due & HOA Special Assess. I was able to keep up with pymts until 12/05 (1st & 2nd total $2900 then - take home about $3600) - tried to work out lower pymts but still too high - Found out about Predatory Loan laws & seller disclosure requirements - THIS LOAN SHOULD NEVER HAVE BEEN MADE SINCE LOAN OFFICER KNEW WE COULD NOT REPAY - Found out 2 loan programs should have been offered: CAL-HFA Low to Moderate 1st time buyer (100% ltv fixed @5.125% 30-35-40 yr, silent second 15K down payment or 3% closing cost loan @7% not paid until refi or sell) OR FannieMae HOMECHOICE Program for Disabled (100% ltv, fixed @3% 30-35-40 yr, silent second 15K down payment or 3% closing cost loan @3% not paid until refi or sell) Long story short (too late for that, huh?) - American Home Mortgage filed NOD 3/3/06 - Dad's credit score is now under 600, credit lines are being cut by others - I am on stress-related disability & may lose my job, etc., etc. How can I challenge the foreclosure on these substantive grounds? Someone also said sale would be voided due to seller nondisclosure. PLEASE HELP!

[pojo2]

This will be VERY terse and I apologize in advance but HOW IN THE HELL did you think on your salary you could afford a 400K home? With or without anyone else even having to sell you some line?

I am on stress-related disability & may lose my job, etc., etc.

Just rolls eyes!

How can I challenge the foreclosure on these substantive grounds

WHY?????? You are unemployed so how long do you think you can make the payments? With Dad's score destroyed too you are in deep doo-doo. See a real estate Atty YESTERDAY.