Predatory Lenders, Us?

     OAKLAND, CALIF. (CN) – An elderly widow says a Realtor whose license was suspended defrauded her of her $350,000 home by persuading her to take out a loan for her son’s funeral expenses. She claims David Ferreira steered her to Instant Mortgage Lending, which sold her a $160,000 loan, of which she got less than $24,000 – $3,000 of which went immediately to Ferreira – and the home she has lived in since 1950 is to be sold at foreclosure on Friday.

     Flora James wants the foreclosure sale stopped and damages for predatory lending and elder abuse.
     She says Ferreira and Instant Mortgage Lending claimed the $160,000 loan had an annual interest rate of 12.99%, though it was much higher, that IML and Ferreira took $34,600 in points, fees and prepaid interest, and that her monthly payment jumped from $675 to more than $2,200.
     “As defendants likely intended (all) along, plaintiff – whose regular monthly income consists of Social Security payments of $770 per month – was unable to make the monthly payments and defaulted on the loan. Defendant Foreclosurelink Inc. has noticed a trustee’s sale for July 18, 2008. Plaintiff brings this action to halt the foreclosure and obtain redress for the gross injustices that have been done.”
     She claims Ferreira’s real estate license was suspended on May 16 this year.
     James is represented in Alameda County Court by Carl Ciochon with Wendel Rosen Black & Dean.

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