Adjustable Rate Mortgages and Subprime Lending

The largest single investment that a person is likely to make in his or her life is the purchase of a home. In order to cover such a large expense, most homeowners need to take out a loan, or mortgage, from their banks. Unfortunately, in a risky effort to boost their own profits, many lenders chose to approve loans with steep terms for borrowers whose own financial stability was somewhat shaky.

As a result, many would-be homeowners have become unable to keep up with rising mortgage payments and are faced with foreclosures and other adverse consequences. The pressure that accompanies such challenging times can have consequences across all aspects of your life, and it is important that you understand all of your legal and financial options at this difficult time.

Contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, at 480-829-0494 to speak with a skilled and experienced attorney about the possible advantages of a bankruptcy filing in your situation.

Understanding the Problem

One of the greatest difficulties in creating any lending agreement is the likely imbalance of knowledge about terminology, logistical details, and the financial realities of a particular mortgage or other financial instrument. Consumers are generally at a disadvantage and are somewhat vulnerable to a lender’s representations.

This has been especially problematic with regard to adjustable rate mortgages, in which a lender may periodically raise the rate and payment amount. This can quickly turn a manageable payment amount into a crippling obligation that interferes with one’s ability to pay for basic living expenses.

Contact Us

A successful bankruptcy filing can free you from the threat of foreclosure and can grant you the opportunity to renegotiate some of your debts. Contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC at 480-829-0494 to learn more about your options.