Both lenders and borrowers have been guilty of it, though right now it seems as though things are finally being done about the lenders taking advantage of people.

When we've looked through paperwork to better understand someone's situation in order to help find a solution, it's clear how complicated things were to understand for some people. Take an ARM (adjustable rate mortgage) for example. We've seen it where the ARM only moved up if a certain amount of the mortgage was not paid down in a given amount of time. The borrowers would have only accomplished this by making triple house payments. In my opinion that's completely unrealistic.

We haven't yet seen something that was not disclosed in any way to a borrower. The worst we have seen is that an escalation clause can take effect if certain things happen, but none of these things has happened before so don't worry it probably will never happen. It was like saying "By the way, but probably not".

You have every right to go through all documents regarding every part of buying a home. Take your time to read them and understand them. It's just not wise to agree to something you do not fully understand.