Memphis, TN asked in Consumer Law and Real Estate Law for Tennessee

Q: Can I sue my mortgage lender for enforcing 8.3% for 16 yrs? Even during modification due to hardship, they would not.

The co-borrower quit claimed the home to me through divorce. The tax assessor removed the co-borrower. The co-borrower is now incarcerated and Deutsche Bank will not remove the co-borrower from the loan unless I refinance. I am still rebuilding my credit and life after divorce and being the sole provider for my son. I cannot afford to make several needed repairs to the home. My original loan was $118,000 and after 16 years, I owe $81,000. It has become emotionally stressful to deal with, knowing over $200,000 has been paid, but the interest is so high that we could never get ahead of the interest rate.

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1 Lawyer Answer

A: It sounds like you should have refinanced a few years ago when rates were super low. While you probably can’t sue your lender for the interest rate assuming that is the rate you previously agreed to, you probably can still get a lower rate on a 15 year mortgage even today and get the co-borrower off the loan at the same time. I would also suggest you pay more than the minimum payment to reduce your principle balance faster, pay off the loan sooner, and reduce the total interest paid over the life of the loan.

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