Posted by Christine Baker on January 01, 1998 at 17:06:35:
In Reply to: secured credit posted by Henry Edwards on December 29, 1997 at 22:30:48:
First of all, I'm not a lawyer.
However, having been a practicing real estate and mortgage broker for a number of years, I have to conclude that it's perfectly legal.
I see it all the time. The famous "gift letter:"
Lenders routinely demand that borrowers write by hand the exact terminology as provided by the lender on a printed sample.
The idea is to ensure that the borrower actually "read" the signed statement. I guess it would be difficult to say you didn't read that if you actually WROTE the statement.
I'm assuming you're getting a "high cost" hard money loan and the lender wants to make sure (or has to, as required by law) that you understand that you might lose your house.
Are you SURE you want that loan, especially since they're stating that the loan isn't in your best interest?
Be careful!
Christine Baker