what nimrods…..?

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CNNMoney.com
Mortgage meltdown: Here come the judgments
Tuesday August 21, 6:11 am ET
By Les Christie, CNNMoney.com staff writer

Earlier this year, a Wisconsin couple won a judgment against Chevy Chase Bank that said the bank deceived them over the terms of their mortgage.

The judge ordered Chevy Chase to rescind the loan and certified the lawsuit as class-action, which could potentially release thousands of other borrowers who felt misled.

According to their attorney, Bryan and Susan Andrews believed they were getting a loan with a fixed 1.95 percent annual interest rate for the first five years. What they got was an option adjustable-rate mortgage (ARM); the 1.95 percent rate only applied for the first month and rose every month afterwards.

“The second month, the interest rate was about 5 percent,” said their attorney Kevin Demet. “After a year it was about 7 percent and now it’s in the 8s.”

3 Comments
  1. Reply
    DJ B
    January 24, 2011 at 11:45 am

    Who the bank or the buyers? Well this is a small example of what has been happening out there. The mortgage transaction is a complex one and if you don’t understand what you’re signing you’re asking for trouble.

    I have not doubt that there area a lot of folks out there in the same boat. I could just scream that people were suckered like this.

  2. Reply
    Craig T
    January 24, 2011 at 12:41 pm

    It will be reversed on appeal

  3. Reply
    godged
    January 24, 2011 at 1:20 pm

    I don’t know who to be mad at. The bank for duping people, or dupes that don’t read what they are signing.

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