A new level of predatory lending

[desertsun]

I used to work for a land development company in Bend Oregon that had a close relationship with a local bank. The company had an employee home building program that is now under federal investigation. To make a long story short, I am a victim of this house program I am facing foreclosure on a loan that was somehow originated without me filling out a 1003 or consenting to a credit check. The loans for the employee house program were originally treated as an extension of the developer’s credit until the developer quit making payments on their commercial loans. Evidence of this is the bank’s/title company’s inability to furnish a GFE or TIL Disclosures. The loan also took me to 64% DTI when the legal limit is 45%. The banker who handled these employee loans received tens of thousands of dollars of kick-backs from the developer and has since been fired. On top of that, an escaped convict working for the developer under an alias was able to get a $300,000+ construction loan under this program. I realize my story sounds completely crazy, but I assure you, I can prove it all and what I’ve told you is only the tip of the iceberg. The bank refuses to work with me and has demanded that I pay them $456,000 and they destroyed my credit. I face losing my business and a foreclosure.

My questions:
Do you know any attorneys who would be interested in taking on this case?
How much can I sue for?
Should I file with the county, the state, or federally?
How long will this process take?

[nextwife]

Originally Posted by desertsun

I used to work for a land development company in Bend Oregon that had a close relationship with a local bank. The company had an employee home building program that is now under federal investigation. To make a long story short, I am a victim of this house program I am facing foreclosure on a loan that was somehow originated without me filling out a 1003 or consenting to a credit check. The loans for the employee house program were originally treated as an extension of the developer’s credit until the developer quit making payments on their commercial loans. Evidence of this is the bank’s/title company’s inability to furnish a GFE or TIL Disclosures. The loan also took me to 64% DTI when the legal limit is 45%. The banker who handled these employee loans received tens of thousands of dollars of kick-backs from the developer and has since been fired. On top of that, an escaped convict working for the developer under an alias was able to get a $300,000+ construction loan under this program. I realize my story sounds completely crazy, but I assure you, I can prove it all and what I’ve told you is only the tip of the iceberg. The bank refuses to work with me and has demanded that I pay them $456,000 and they destroyed my credit. I face losing my business and a foreclosure.

My questions:
Do you know any attorneys who would be interested in taking on this case?
How much can I sue for?
Should I file with the county, the state, or federally?
How long will this process take?

Are the terms of the loan DIFFERENT than what you agreed to or signed? Did you know what your payments were going to be, and were those the payments? Was there a HUD?

I obtained a large LTI loan, but I found a roommate and made sure I made the payments I had committed to make. Many of us had high loans, but made provisions to cover those payments and did NOT default.

[desertsun]

None of the documentation I gather from the bank or the title company had any information on terms or the payment. I didn’t get a HUD either. Payments on the loan along with all other employee loans to this bank were always made with a lump sum single check from the developer. I never made a single payment. All draw disbursements went directly to the developer as well.

Interestingly, in some of the documentation I was able to obtain from the bank I saw my signature blatantly forged on draw requests. Also, I compared the dates that draws were funded with dates that liens were filed/released and can prove that the bank funded draws while there were liens on the property. This brings me to my current situation where the house has a fully drawn construction loan at $380,000, is $20,000 away from being completed, and there were an additional $26,000 in liens that the bank has (for some reason) already paid.

FYI: Since getting in this situation I became a licensed real estate broker and loan originator in the state of Oregon so that I could maybe make some sense of what was going on.

[seniorjudge]

So you signed all the documents?

If so, where does the predatory "lending" come in (since you agreed to everything)?

[desertsun]

No, I did not sign a 1003, a GFE, a credit release authorization or TIL Disclosures.

[dmiller12]

No, I did not sign a 1003, a GFE, a credit release authorization or TIL Disclosures.

But, did you sign the note, the mortgage and the deed?

[desertsun]

I did go to the title company and sign the deed. At the time I did this I was told that the if I ever resigned, got fired, or retired the property would go back to the developer, as evidenced by what happened with the escaped convict. A bank employee also told me that the property was collateralized by the developer's commercial property.

I have a copy of my credit report taken 9 months after I signed the deed and the mortgage did not show up on my credit. But at the 20th month it had started affecting my credit. Does this mean anything?