Can I sue the mortgage broker/company that wrote this inflated loan

[helpinflorida]

What is the name of your state (only U.S. law)? Florida

I purchased my first home (condo) at the peak of the housing bubble. The home is my primary residence. I was given a loan that I could barely afford using the premise that within two years, there would be equity, and I could easily refinance the $171,000 interest-only ARM that would be resetting at that time. The market crashed, and I have two mortgages totaling $213,900 - and a condo that will sell at around $45,000. I am in default, and US Bank has filed a foreclosure suit against me as of 12/24/08. I put no money down, and 100% was financed.

My question is whether it is possible and beneficial to sue the parties involved in the transaction who performed the inflated appraisal, originated the loans, and any others involved? I was earning a salary of $35,000 and had a commission plan of up to another $35,000. But the loans totaled $214K, and that seems highly unethical to me. (I certainly realize that I had a choice in these decisions, but I still am interested in recourse.)What is the name of your state (only U.S. law)?

[Zigner]

Originally Posted by helpinflorida

What is the name of your state (only U.S. law)? Florida

I purchased my first home (condo) at the peak of the housing bubble. The home is my primary residence. I was given a loan that I could barely afford using the premise that within two years, there would be equity, and I could easily refinance the $171,000 interest-only ARM that would be resetting at that time. The market crashed, and I have two mortgages totaling $213,900 - and a condo that will sell at around $45,000. I am in default, and US Bank has filed a foreclosure suit against me as of 12/24/08. I put no money down, and 100% was financed.

My question is whether it is possible and beneficial to sue the parties involved in the transaction who performed the inflated appraisal, originated the loans, and any others involved? I was earning a salary of $35,000 and had a commission plan of up to another $35,000. But the loans totaled $214K, and that seems highly unethical to me. (I certainly realize that I had a choice in these decisions, but I still am interested in recourse.)What is the name of your state (only U.S. law)?

So, you went in to this knowing full well that you couldn't afford it, right?

If you sue, include yourself at the top of the list of defendants!

[JETX]

Originally Posted by helpinflorida

My question is whether it is possible and beneficial to sue the parties involved in the transaction who performed the inflated appraisal, originated the loans, and any others involved? I was earning a salary of $35,000 and had a commission plan of up to another $35,000. But the loans totaled $214K, and that seems highly unethical to me. (I certainly realize that I had a choice in these decisions, but I still am interested in recourse.)

Possible?? Yes.
Beneficial?? No.

Also, if you do decide to sue, the first party you should name as defendant is YOURSELF. No one forced you to sign anything. You simply GAMBLED that the market would allow you to gain equity and refinance or sell. You lost. Now you have to be a responsible adult and accept the consequences of YOUR actions.