Posted by Henry Edwards on January 03, 1998 at 20:16:30:
In Reply to: Re: secured credit - lender demands handwritten statement posted by Christine Baker on January 01, 1998 at 17:06:35:
: 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
: Thank for your response. The other problem with
this "gift letter" was it was requested two weeks
after signing the paperwork. The loan company said if they didn't receive the "letter," they will delay funding the loan. I believe this isn't right. Am I correct? (This is violation of the Truth in Leading Disclousre laws)