Many homeowners right now are facing foreclosure. I came across this article at Examiner.com in which one victim tells her story of mortgage fraud.
This lady got into a mess with a loan modification. She opted for the modification to prevent falling behind on her payments or have her credit ruined. In the end she ended up some $7000 delinquent in her payments.
One thing that we all need to understand is that contracts are drafted by attorneys. When you sign any contract (especially those ‘standard’ contracts), that document was drawn up on behalf of the other party by their attorney. The fact is that the attorney was working for the other side, not you.
This is why it is so important to have contracts reviewed by an attorney on your behalf. You probably know someone who has been burnt by signing a contract. Balloon payments immediately come to mind. How many people do you know that bought a car and found out when they got around to those final payments that the payment had skyrocketed? Maybe it has happened to you?
Had an attorney for the buyer reviewed that contract, the balloon payment would have been revealed by the buyers attorney along with any other hidden surprises. Perhaps I shouldn’t say hidden because it is spelled out in that contract somewhere but most of us don’t read the complete contract or we read it and act like we know what it means. We don’t want to look stupid.
Not understanding a contract does not make you stupid, it simply means that you are not an attorney. You just don’t have the needed training and education to understand it, an attorney does. Wouldn’t it be smarter to have someone who does understand review it for you and then tell you what you are getting ready to legally agree to?