Legal Question in Real Estate Law in California

Re: predatoral lening

I had hoped President Obama would do something about homeowners affected by predatory lending, but he didn't and won't.

If you really owe 250% of your home's value, move out and send them the keys by jingle mail.

Re: predatoral lening

You probably don't. Interest rates are going up [yours will also], as are loan qualification requirements, while market values will continue to go down for at least several more years as the economy collapses under government debt and inflation. You are one of millions that took out unwise loans you couldn't repay or qualify for under normal banking rules; speculating for profit on market price increasing 'forever'. If you can't make the payments, and the loan is already more than twice home value, and can't expect to get a loan mod down to anywhere near that reduced value, then you will lose it to foreclosure, whether you walk away now or later. Making matters worse, this is probably a re-fi loan, on which you can be sued for deficiency judgment after foreclosure. At least you can try to defend that suit on 'predatory lending' claims. Was this 'predatory lending'? Maybe. Can you prove it? Maybe, with enough time and money in litigation. Will the lender still be around to collect from if and when you sue and get a judgment? Who knows?