Upside Down Mortgage

Predatory Lending Claims

Question: I need Info about Predatory Lenders and Can this be right?

I have a Friend who recently Bought a House in a Brand New Subdivision about 2 years ago. She took out a fixed Mortgage and her payments were around $950 and have been up until 9 Monthsago when she was Told her payments were jumping to $1200 a Month because the taxes werent figured correctly. Well She just Received a notice that payment are jumping to $1700 a month (Double her Original Payment! ggrrrrrrr). Again the claim is that the property value was originally figured for the undeveloped land, but nowthe taxes are jumping because the property Value is Much Higher than what they were originally figured at. :-s... So the Question is , Is this Some form of Predatory lending? I know it has to be an Injustice... What recourse can she Take.
She Lives in Texas and I know that many of her neighbors are experiencing the same thing.
Thanks for your help

Answer: I live in Canada so things might not all be the same.

I have a tax component in my mortgage that goes up (not down) with the assesed value of my house. Property values have skyrocketed here and the result is higher assesments and more taxes. But I can dispute the assesed value and it tells me on the assesment how to do this.

This assesment comes from the land-titles office (or something similar) and should have been looked at before the house was purchased (to figure out a proper tax component). The lending institution might have led your friend down the prim rose path with a low payment until they got a hold of the assesment.

Predatory lending claims emerge

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