It was bound to happen. The [tag-tec]mortgage class-action lawsuits[/tag-tec] are just about to begin.
They’re the results of many of those [tag-ice]subprime borrowers[/tag-ice] claiming they were deceived and really didn’t fully comprehend the basic anatomy of an [tag-self]ARM[/tag-self].
Lenders didn’t explain enough, didn’t warn them enough, and didn’t make it plain and simple enough so they could understand. When payments suddenly escalated as [tag-cat]interest rates[/tag-cat] rose, these borrowers were in intense shock.
They may have a point. However, as with anything, especially the renting of money, let the buyer beware. Always read the fine print.
Two banks in the target zone are Chevy Chase Bank of MD., and First Horizon Home Loan Corp of TN.
And as with any class action lawsuits, the attorneys will go after the big guys, where the money is.
We’ll keep you posted because this just may be one of the big real estate stories of the year.