Comment on The Chicago Tribune Article on "Lenders who prey on vets cost us all"

This article in the February 18, 2018 issue of the Chicago Tribune outlined alleged fraud against certain lenders of real estate loans to veterans.

The article, by Kenneth Harney, was excellent in outlining the problems faced by veterans when seeking a home loan.  Kenneth asserts that 12,000 to 20,000 vets are affected by the alleged fraud and that many are asking for legislation against these practices on Capitol Hill.

Harney wrote that not only do these harmful tactics adversely affect veterans but these tactics also raise interest rates and lending costs for the general population.  An example is given of a $300,000 loan costing the borrower an extra $1,000 per year in payments.

But what really bothered this writer was that no where in the article was the suggestion made to encourage veterans to hire a lawyer to review the loan papers and assist with the closing.  In many states, the buyer or borrower as to real estate is falsely told that he or she does not need a lawyer for the closing, and in effect, the title company, brokerage office, and lender will treat him or her fair and square.

A one question intelligence test:  Is it better to hire a competent lawyer to review the loan papers and ferret out the bait and switch tactics or is it better to pay an extra $30,000 over the life of the loan?

 

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  • This is exactly what my niece, Melinda (a lawyer), does.

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