Frances inherited a home worth $70,000 from her mother. The house had no mortgage on it, but she did owe $4,500 in delinquent property tax. Fearing a tax sale, Frances went looking for a loan. A mortgage broker assured her he could arrange a loan before the tax sale date. As the deadline drew near, the lender stalled Frances. At the last minute, the lender told her the only way to get her the money for the property tax was to sell the house to him “temporarily” for $10,000. He offered her the right to repurchase it for $40,000 after a year, while paying him rent in the meantime.

Believing she had no choice but to accept the terms, Frances agreed. A few weeks later, the lender demanded Frances pay him a security deposit. When she refused, the lender locked her out of the house and put the house up for sale. Frances contacted LAET for help, and a staff attorney helped her recover her family home.

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If you or someone you know can’t afford legal assistance regarding Predatory Lending, contact LAET at (865) 637-0484. To help someone like Frances with legal aid, click “Make a Difference.”

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