Subprime Bankruptcies: Fertile Ground for Lawsuits

Legal issues have become a growing concern for many involved in the subprime industry. Claims from distressed borrowers against loan originators have begun to increase, as have actions pitting business partners against each other and claims against purchasers of subprime mortgage-backed securities that did not honor an agreement in some way, according to participants in [...]

Realtor’s Error: This ‘Short Sale’ Led to Loss of Home

by Eric Forster Edna P. purchased her home in Mount Vernon, NY, three years ago. Her mortgage broker obtained 100% financing for her: A first mortgage (Option Arm) for 80% of the purchase price and a second mortgage for the balance. She could barely afford the monthly payments the first few years. This year, her [...]