Understanding Mortgage Law

The effects of Missouri mortgage law and predatory lending laws in Joplin require attorneys who deal with these issues on a daily basis. The Hershewe Law Firm is not only familiar with these laws, but works to defend the rights of homeowners for whom mortgage laws may be confusing or seem to put them at a disadvantage.

First, it helps to know definitions of the protections that are provided by Missouri predatory lending law. A reverse mortgage provides cash to borrowers based on equity in their principal residence (i.e., an owner-occupied unit). The loan is secured by the real estate and requires no payment of principal or interest until the entire loan becomes due. That is when ownership of the property is transferred to the lender.

You need protection from predatory lending tactics

Aside from the inherent problems that are often associated with this arrangement (for example, the home will not be available to heirs), the marketing of reverse mortgages often involves one or several of the following predatory tactics:

• Bait and switch: This is when the lender offers one deal and then changes it to another where the terms are less favorable
• Fraud: When the lender conceals loan terms
• Equity stripping: Basing the loan on home equity of the borrower, regardless of his or her ability to repay the loan
• Prepayment penalties: If the borrower pays off the loan early or refinances the loan, the lender charges excessive fees
• Balloon payments: When there is an enormously high payment due at the end of the loan lifetime
• Insurance packing: The lender places charges on the borrower for things that the borrower does not need or want, such as extra insurance
• Loan flipping: When the lender refinances the loan unnecessarily, with no benefit to the buyer

Also, state predatory lending law requires that you be given advice regarding the information and counseling services on reverse mortgages, available through an independent third party. If your lender fails to advise you of this, they could be in violation of state law.

Let us fight for you!

The Hershewe Law Firm is respected by clients, peers, and adversaries as aggressive litigators and hard-nosed negotiators. We are known for our legal skills and record of integrity, compassion, community service, and the personal attention we provide every client we represent.

Serving predatory lending victims in Missouri, Arkansas, Kansas, Oklahoma and nationally, the Hershewe Law Firm has the skill and experience to fight the predatory lenders causing you and loved ones distress. Call 877-382-9734 or contact us online today for a free consultation about your case.