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She pays 9 percent on her loan and cannot refinance it into a lower-rate mortgage, given her recent bankruptcy.
The bank had specialized in offering so-called Alt-A loans, a risky type of mortgage given to borrowers who decline to prove their incomes or net worth.
On the other hand, it does not follow that because the money borrowed by the wife with the authorization of the judge was used to pay her husband's debts, the note and mortgage given therefor are void and cannot be enforced.
A $10,000 price cut, by contrast, would mean $50 to $60 less a month for a buyer with a 30-year mortgage, given today's lending rules of thumb, said Roberta Plutzik Baldwin, a broker with the Keller Williams NJ Metro Group in Montclair.
Among other things, he claimed that Mr. DiFrancesco had assured him that there was no conflict of interest in Mr. DiFrancesco's representing both his relatives and Dr. Scott; had misled Dr. Scott about the risks involved in lending the money and the value of his collateral; and had failed to record a mortgage given to Dr. Scott at the time he lent the $200,000.
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A reverse mortgage gives people the chance to 'age in place.' " People take out reverse mortgages for a variety of reasons.
But interest rates on 2/28s rise more sharply than adjustable-rate mortgages given to prime borrowers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com